Apollo Real Estate Advisors Announces The Final Closing of The Apollo International Real Estate Fund.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 4, 2003

Apollo Real Estate Advisors is pleased to announce the final closing of Apollo International Real Estate Fund.

This Fund will invest in a diversified portfolio of real estate assets, primarily in Western Europe, and also in Central Europe and Japan. The Fund and an affiliated partnership raised approximately $335 million of equity, including a $15 million commitment from Apollo, the managing general partner. Approximately one third of the capital has been invested to date. Other investors included US, European and Australian public employee retirement systems, pension plans, banks, insurance companies and family offices of high net worth investors.

This Fund marks the continuation of Apollo's successful investment strategy overseas. "We began investing in Europe in 1995," said Lee Neibart, a Senior Partner at Apollo, "It is an important part of our business going forward. Prior to the final closing of the International Fund, we had invested more than $700 million in over fifty-five separate transactions. We have invested in fourteen countries, alongside eighteen highly competent, country and property type specific, local operating partners. Our returns have been among the most rewarding and consistent of all of our investments. When Apollo looked at the US markets for opportunity funds in 2001, we concluded that the current environment would offer very few appropriate new investments for the next twenty-four to thirty-six months. However, as we expected, we have continued to identify attractive properties in Europe and to a smaller extent in Japan, generally on an off-market basis through the direct relationships of the Apollo Real Estate Advisors' partners in the London, New York and Los Angeles offices."

William Benjamin is head of the European investment practice. John Robertson, Chris Hoddell and Michael Pashley are also London based Apollo partners who supervise a team of ten acquisitions, asset management, finance and dispositions professionals. "Apollo has become part of the local landscape in the major cities in Europe," said Benjamin. "We have delivered strong realized performance. We have earned a level of credibility that is second to none as responsive, creative real estate principals. We are very pleased to have attracted several new international investors to subscribe alongside our repeat US clients. One of the highlights of the International Fund's investments to date was the May 2002 acquisition of the $2 billion Haslemere Company, one of the largest holders of institutional quality office, retail and industrial distribution assets in the UK. This 134-property portfolio was acquired in a relatively short period of time for a transaction of its size and received overwhelming support from both management and public shareholders. Performance is ahead of expectations so far."

To present European investment opportunities please contact:

William Benjamin 011 44 207 881 4240

To present Japanese investment opportunities please contact:

Richard Ackerman 310 201 4141

About the Sponsor:

Apollo Real Estate Advisors is a privately held, employee-owned, principal investment team founded in 1993 by William Mack. Apollo serves as the General Partner of a series of eight diversified real estate investment funds. Apollo manages more than $3.7 billion of clients' and partners' equity in more than 200 separate investments in portfolios and individual property assets, with a gross asset value in excess of $15 billion, in the United States, Europe and Japan. Apollo's business is built on the longevity and hands-on operating experience of its 35 real estate professionals, located in New York, Chicago, Los Angeles and London. Opportunistic real estate is Apollo's only investment strategy. Its clients include domestic and international retirement systems, pension plans, endowments, foundations, banks, insurance companies and family offices. For ten years, Apollo has successfully delivered strong returns to its investors by identifying off-market and under-managed properties, often teaming with strong local operating partners, and creating value through active asset management and by developing, re-developing, operating, and financing and selling investment grade real estate.