PRAEDIUM GROUP SELLS LOS ANGELES, CA AREA OFFICE PROPERTY FOR $12 MILLION

New York, NY- February 11, 2004--The Praedium Group LLC, a New York City-based national real estate investment firm announced today the sale of the Arrow Business Park in Rancho Cucamonga, California to Prologis based in Aurora, Colorado for $12.28 million, or $48 per square foot.

Built between 1987 and 1989 as part of the Arrow Business Park, this sale comprises two large warehouse/distribution properties located at 9000-9100 Ninth Street totaling 257,400 square feet on 13 acres. Previously seven R&D buildings were purchased as a whole in September, 2001. Those seven properties comprising one and two-story multi-tenant office/R&D buildings totaling 136,000 square feet on 8 acres, which sold to SVN Equities, LLC, an Irvine, Calif.-based investment group for $8.2 million in November, 2002. The property is currently 100 percent occupied.

Pat Scruggs and Gary Stache of CB Richard Ellis represented both the seller and the buyer, ProLogis of Aurora, CO.

Chris Hughes, Praedium Group Principal, said, "Well-located warehouse and distribution product is very much in favor with investors, as maintenance and management are relatively straightforward compared with most other commercial asset classes. As assets are leased, they present the opportunity to achieve solid cash flows without requiring significant capital investment, such as tenant improvements. Additionally, the extension of the 210 Freeway has increased investor interest in this location within the Inland Empire market."

The Praedium Group is a real estate investor focusing on underperforming and undervalued assets throughout North America, with more than $2 billion in total investments to date. Praedium was formed in 1991 with a leading international investment bank as its sole investor.

Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.

Praedium recently closed on a $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund is investing in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. For more information please see www.praediumgroup.com.