PRAEDIUM GROUP AND AFFIRMATIVE EQUITIES SELL FLORIDA APARTMENTS FOR $32 MILLION

January 10, 2006-New York -The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the disposition of Howell Branch Apartments, a joint venture purchased with Affirmative Equities Company, L.P., a New York City-based owner and operator of multi-family properties. Howell Branch, a multi-family property located at 2105 Howell Branch Road in Maitland, FL, was sold for $31.5 million or $85,600 per unit.

Howell Branch, located on 19 acres, consists of 368 units housed in 32 two-story buildings. Additional amenities include a leasing office and a clubhouse that overlooks the main pool. Howell Branch was 96 percent occupied at the time of sale to Florida-based General Real Estate Corporation. At the time of purchase in December 2003, Howell Branch was 87 percent occupied.

Mark Lippmann, vice president at Praedium said, "We instituted a renovation program which included exterior capital improvements and renovations on all unit interiors. Additional improvements included the conversion of 80 studio units to one-bedrooms. We were also able to increase physical occupancy through aggressive leasing efforts."

Andrew Jubelt, President of Affirmative Equities Company said, "We instituted a value-added business plan wherein we renovated units, which now feature faux wood floors in the kitchen, new stainless steel appliances, cabinet doors and countertops. This highly successful conversion demonstrated the demand for high-end rentals and subsequently condos in the area."

This was Praedium's fourth transaction in Florida with Affirmative Equities Company. The properties were managed and repositioned through a related company, Affirmative Arco Management Group LLC. The management group currently and in the recent past has managed several thousand multi-family units successfully adding value to each of the assets.

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 225 transactions comprised of 40 million square feet of commercial space and 44,000 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.