PRAEDIUM, COASTLINE ACQUIRE MULTI-FAMILY PROPERTY IN PHOENIX, ARIZONA FOR $13 MILLION

September 26, 2006 - New York -The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the acquisition of the Santa Fe Springs Apartments, a multi-family property located in Phoenix, Ariz., purchased in joint venture with Coastline Capital Partners LLC of Hermosa Beach, Calif. for $13 million, or $41, 935 per unit.

Built in 1974, Santa Fe Springs is a 310-unit, garden-style apartment community located at 1717-1725 West Glendale Avenue in Phoenix. It is currently 98 percent occupied. Property amenities include two swimming pools, laundry facilities, a 24-hour fitness center, two lighted tennis courts, a beach volleyball court, a clubhouse with large-screen TV, and covered parking.

"We believe this asset is ideally suited to be repositioned through a defined capital improvement program," said Bob Murray, director at Praedium.

This transaction is the seventh joint venture between Praedium and Coastline Capital Partners.

"The Phoenix MSA is one of the fastest growing regions in the country. We are excited about this investment, and are looking to acquire more assets in the area as a result of the continued strong rent and job growth, and healthy absorption," said Eric Freedman, Principal of Coastline Capital Partners, LLC.

Coastline Capital Partners, LLC is a real estate investment company based out of Hermosa Beach, Calif. whose aim is to realize an asset's full value by carefully assessing long-term hold, repositioning, and development opportunities throughout the Western United States. Coastline was formed in 2002 and has since acquired nearly $175 million in multifamily assets.

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.