PRAEDIUM, SKB ACQUIRE PHOENIX OFFICE PROPERTY FOR $49 MILLION

September 6, 2005-New York - The Praedium Group LLC, a New York City-based national real estate investment firm, announced today a joint venture acquisition with Portland-based ScanlanKemperBard Companies to purchase Phoenix Corporate Center located on North 25th Avenue in Phoenix, AZ for $49.3 million or $112 per square foot.

Built in three phases from 1975 to 1982, Phoenix Corporate Center - located on 33 acres - consists of eight buildings totaling 440,653 square feet. This campus style property offers large, flexible floor plans that can accommodate tenants of all sizes. The property also has 2,000 parking spaces, or 4.4 per 1,000 square foot. At the time of purchase, Phoenix Corporate Center was 78 percent occupied.

Bob Murray, director at Praedium said, "The Metrocenter submarket offers a lower cost alternative to the Scottsdale submarkets. We plan to take advantage of Phoenix Corporate Center's location and the continued strengthening of the Phoenix office market in order to attract new tenants."

"The opportunity of this office portfolio will be realized by leasing the vacant space," says SKB principal Todd Gooding. "The availability of parking has been a major asset in attracting many of the existing back office and educational tenants at the property that require significant parking for employees."

ScanlanKemperBard Companies, LLC, was founded in early 1993 in Portland, Oregon. Since then, SKB has become one of the West's leading real estate merchant banking firms specializing in opportunistic investment in Western U.S. projects having total capitalization in the $15 million to $100 million range.

The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $4 billion in total investments to date in over 200 transactions comprised of 38 million square feet of commercial space and 33,000 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 investing its most recent $700 million real estate private equity fund, Praedium Fund VI. This equity will be leveraged to acquire over $2 billion in properties. The fund invests 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. CDP Capital-Real Estate Advisory, a Montreal-based real estate advisor and portfolio manager, is a major shareholder of The Praedium Group. CDP Capital-Real Estate Advisory is an affiliate of the Caisse de depot et placement du Quebec, one of the world's 10 largest real estate managers. For more information, please see www.praediumgroup.com.