PRAEDIUM GROUP SEEKS TO INCREASE INVESTMENT IN WASHINGTON, DC METRO AREA

Real Estate Firm To Step Up Acquisitions In The Region

New York - May 24, 2004 - The Praedium Group LLC, a New York City-based national real estate investment firm announced today it is targeting up to $400-500 million for acquisitions in the greater Washington, DC metro area, including suburban Virginia and Maryland.

"Over the past few years we have invested in the office and multi-family sectors in the region," said Robert Murray, vice president and regional head of the Praedium Group. "We would like to increase our presence in those sectors as well as expand into retail and industrial in this market. Our business model is to partner with entrepreneurial real estate operators in the region and we believe this strategy will enhance our ability to be successful in this market."

"With the government likely to continue to spend money on national defense, we believe the District and surrounding areas will be a pocket of high growth and an area in which we want to focus our efforts," he added. "We have developed a niche across the country in buying and improving assets in the under-$40 million range. We plan on bringing the same expertise to the Washington Metro area."

The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with $3.5 billion in total investments to date in 1,200 assets comprised of 33 million square feet of commercial space and 28,000 multi-family units. 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 is currently investing in its most recent $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund will invest 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.