PRAEDIUM GROUP HIRES TWO PORTFOLIO MANAGERS FOR SECURITIES INVESTMENT

New York - April 15, 2004 - The Praedium Group LLC, a New York City-based national real estate investment firm announced today the appointments of Christopher Pappas and Brian O'Flanagan as Portfolio Managers to oversee real estate public securities investing for the firm. The team will lead Praedium's long/short hedged strategies.

"The recent 15 percent correction in the REIT market demonstrates the desirability of a hedged strategy that mitigates risk in a declining market. This type of strategy is conceived to generate positive returns regardless of market conditions," said Russ Appel, President of The Praedium Group. "Real estate securities are influenced by large and rapidly changing funds flows. The latest generation of hedged strategies entail the benefits of real estate exposure and stock market liquidity while reducing volatility, and therefore risk."

Mr. Pappas was the Portfolio Manager for Deutsche Bank's REIT-dedicated PRIMUS fund where he was responsible for formulating the Fund's portfolio strategy and making investment decisions. He was an investment banker at PaineWebber and Chase Securities, structuring real estate transactions, raising capital and valuing and managing real estate purchase and sale transactions. Mr. Pappas has a Bachelor of Science in Finance from Lehigh University and a Masters of Business Administration in Finance and Real Estate from Columbia Business School.

Prior to joining Praedium, Brian O'Flanagan, was Portfolio Manager of Northland Capital Partners, a long/short hedge fund focused on real estate, lodging and gaming securities. He was responsible for making investment decisions, generating and evaluating long/short investment ideas and developing the fund's portfolio and risk management systems. Prior to Northland, Brian was a vice president and the lead equity research analyst at a boutique investment bank where he originated and directed its real estate equity research group. Mr. O'Flanagan covered real estate securities in each of the major property sectors including, office, industrial, malls, shopping centers, apartments and hotels. Previously, he managed finance and accounting at Tishman Speyer Properties. Mr. O'Flanagan holds a Bachelor of Science in Business Administration, magna cum laude from The Ohio State University and a Master's of Business Administration from New York University's Stern School of Business.

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.