PRAEDIUM GROUP, TOWER REALTY ACQUIRE ORLANDO OFFICE PROPERTY FOR $70 MILLION

March 7, 2006-New York - The Praedium Group LLC, a New York City-based national real estate investment firm, announced today a joint venture acquisition with Orlando-based Tower Realty Partners, Inc. to purchase One Orlando Centre, an office property located in Orlando, FL. The 356,000 square foot, 19-story property was purchased for $70 million or $197 per square foot.

Built in 1987 by Olympia & York, the property located at 800 North Magnolia Avenue is one of the premier office buildings in downtown Orlando. The building is known for its distinctive façade comprised of rose granite. One Orlando Centre includes an adjacent, eight-story parking facility. At the time of purchase, the property was 87 percent leased. The seller was Reckson Associates Realty Corp.

"One Orlando Center was an attractive opportunity because of the strong and increasing demand from tenants for CBD office product in Orlando during the past year," said Mark Lippmann, vice president at Praedium. "Additionally, the class A vacancy rate is 7.8 percent, which presents an opportunity for occupancy growth at the Property in the short term."

Cliff Stein, of Tower Realty Partners, said, "This investment presented an opportunity to purchase a high quality asset with an above-market vacancy rate. We plan to take advantage of Orlando's dramatically improving office market by leasing the balance of the building."

The acquisition of One Orlando Centre represents Praedium's seventh joint venture acquisition with Tower. "During the last year in Central Florida, we have acquired over $200 million in various asset types," added Mr. Lippmann. "We plan to continue to expand our presence in the area."

Since last spring, Praedium has purchased 1.2 million square feet of office and flex space in Orlando. In April 2005, Praedium and Tower purchased the Orlando Airport Business Center. In November 2005, Praedium and Tower acquired both the Orlando Flex Portfolio and the Longwood Business Center. This portfolio is currently 96 percent leased.

Tower Realty Partners, Inc. is a commercial real estate firm concentrating on investment, brokerage and property management services. Tower was established in 1987 between principals, Clifford Stein and Reid Berman. Currently, Tower owns and operates a portfolio of office and retail projects in the Central Florida area in excess of $200 million.
 
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with more than $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.