May 4, 2004

Real Estate Firm Praedium Hires Managers for Long/Short Portfolio

NEW YORK (HedgeWorld.com)--The Praedium Group LLC appointed Christopher Pappas and Brian O' Flanagan as portfolio managers for a long/short hedged strategy in real estate securities.

Mr. Pappas previously was at Deutsche Realty Advisors in New York, where he managed Deutsche Bank's Primus fund, a vehicle dedicated to REIT investments. He has been an investment banker at PaineWebber and Chase Securities, working on real estate transactions.

Mr. O' Flanagan was portfolio manager for Northland Capital Partners in Newton, Mass., responsible for investment decisions and risk management for a long/short hedge fund focused on real estate, lodging and gaming companies.

"The recent 15% correction in the REIT market demonstrates the desirability of a hedged strategy that mitigates risk in a declining market," said the New York-based real estate investment firm's president, Russ Appel, in a statement.

"This type of strategy is conceived to generate positive returns regardless of market conditions." He added that the latest generation of hedged strategies offers the benefits of real estate exposure and stock market liquidity while reducing volatility.

Praedium Group invests in real estate throughout North America and has invested more than US$2 billion in assets. It recently closed on a US $465 million real estate private equity fund, Praedium Fund V. This fund will be leveraged to acquire $1.5 billion in properties.

CKurdas@HedgeWorld.com

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