PRAEDIUM GROUP AND THE DELTA GROUP ACQUIRE INDUSTRIAL PROPERTY IN NEW JERSEY FOR $20 MILLION

New York - May 26, 2004 - The Praedium Group LLC, and the Delta Group, New York City-based national real estate investment firms announced today the acquisition of the Pureland Industrial property located in Bridgeport, New Jersey for $20.25 million, or $41 per square foot.

The property, which was 60 percent occupied at the time of sale, comprises two warehouse/distribution facilities totaling 497,414 square feet. One building, which was built in 1992, consists of 299,520 square feet and is 100 percent leased to Home Depot. The company utilizes the space as its main lumber distribution hub for the Mid-Atlantic region. The second building, built in 1983 and expanded in 1988, consists of 197,894 square feet and is currently unoccupied.

Praedium's local operating partner is the Delta Group located in New York City. Bob Yoshimura of the Flynn Company located in Philadelphia, Pennsylvania represented the seller.

Philip Tager, Director in Praedium's acquisitions group said, "We believe that the two buildings together present an opportunity to create value through aggressive leasing and marketing."
"As the economic recovery continues, we are confident that the Southern New Jersey industrial market will see an increase in leasing velocity and we hope to capitalize on that increase," said Michael S. Dana, President of the Delta Group LLC.

The Delta Group LLC, a New York-based real estate private equity firm formed in 2002, has an interest in over $300 million of real estate around the United States. Delta Group looks to invest across all assets classes and pursues transactions that tend to have significant upside from market re-positioning and re-leasing, improvement of the capital structure, or a development standpoint.

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.