PRAEDIUM, HAMILTON ZANZE ANNOUNCE ACQUISITION OF COLORADO SPRINGS MULTI FAMILY FOR $22 MILLION

January 4, 2006 - New York - The Praedium Group LLC, a New York City-based national real estate investment firm, announced today a joint venture acquisition with San Francisco-based Hamilton Zanze to purchase Sunset Ridge Apartments. Sunset Ridge, located at 5910 Vista Ridge Point in Colorado Springs, CO, was acquired for $21.6 million or $90,000 per unit.

Built in 1997, the 240-unit property has 19 buildings set on 15 acres. Amenities include a clubhouse, swimming pool, whirlpool, fitness center and access to an adjacent private nature reserve. At the time of purchase, the property was 70 percent occupied.

Chris Hughes, principal at Praedium said, "The property is located in northeast Colorado Springs in close proximity to major employers, retail centers, and the University of Colorado at Colorado Springs. We plan to enhance the physical appearance of the asset and increase occupancy through an aggressive leasing strategy."

Sunset Ridge Apartments will represent Praedium's third joint venture with Hamilton Zanze. In March 2005, Praedium and Hamilton Zanze acquired The Retreat at Cheyenne Mountain, a 276-unit multi-family property located in the Broadmoor district of Colorado Springs. In October 2004, Praedium and Hamilton Zanze acquired Gentrytown Manor Apartments, an 85-unit multi-family property located in Antioch, California.

Hamilton Zanze & Company (HZ & Co) is a syndicator of investment real estate, traditionally apartments. HZ & Co manages 24 apartment properties totaling more than 4,000 units in the Bay Area, Las Vegas, Colorado Springs, Phoenix, Salt Lake City, Spokane County and Seattle.

The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $5 billion in total investments to date in more than 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 more than $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. Cadim, a Montreal-based real estate advisor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers. For more information, please see www.praediumgroup.com.