Apollo Real Estate Advisors and GMAC Institutional Advisors Announce Commencement of Operations of the Apollo/GMAC Real Estate Mezzanine Fund.

Business Editors/Real Estate Writers

NEW YORK--(BUSINESS WIRE)--April 1, 2003

Apollo Real Estate Advisors and GMAC Institutional Advisors ("GIA") are pleased to announce the closing of the jointly sponsored Apollo/GMAC Real Estate Mezzanine Fund.

This fund will invest in junior loans and preferred equity positions, typically $8 to $20 million per transaction, with terms of up to five years. The Fund has an investment capacity of approximately $200 million. In addition to Apollo, the managing general partner, and GIA, the co-general partner, lead investors included insurance companies and a private endowment. A five-year term credit facility has been provided to the fund by a GMAC affiliate.

This is the first time Apollo has created a fund with a co-sponsor, and the second such venture for GIA. "Our two firms are leaders in the equity and debt businesses. It is a powerful combination," said Lee Neibart, a Senior Partner at Apollo, "When Apollo began discussing expanding its investment activities into the mezzanine arena, it was natural to approach GMAC about working together. As the largest originator of commercial property first mortgage debt, GMAC will help us provide a full service solution to borrowers looking to recapitalize or acquire assets."

Eric Lindner, President of GIA, added, "We look at mezzanine investments as having components of both debt and equity. We have invested alongside the Apollo partners in their funds and in individual property transactions, including AOL Time Warner Center. We believe we can offer more creative solutions to borrowers by teaming up with an established equity sponsor as we move into this space."

Borrowers may access the fund through the thirty-five GMAC production offices nationally, as well as referrals from the national network of local operating partners with whom Apollo has invested during the past ten years. The fund will also cooperate with other senior lenders in capitalizing transactions, either through new originations of mezzanine and preferred equity positions, or acquisitions of interests in closed transactions.

"We expect to invest the available capital over the next twenty-four months," said Bill Scully, who together with Rick Koenigsberger, are the Apollo partners charged with day-to-day management of the fund. Chuck Spetka, Managing Director of GIA, will be GMAC's primary contact. "As 'equity guys' historically, we think we may be able to offer a slightly different perspective in helping borrowers craft solutions for complex deals," Koenigsberger added.

To present mezzanine investment opportunities please contact:

Apollo Real Estate Advisors         GMAC Institutional Advisors
William Scully  212-515-3246        Charles Spetka 215-328-3231
Rick Koenigsberger 212-515-3230

About the Sponsors:

Apollo Real Estate Advisors, founded in 1993 by William Mack, is a privately held real estate investment company, currently managing in excess of $3.5 billion in equity on behalf of retirement systems, ERISA funds, endowments, foundations, insurance companies, banks and high net worth families and its partners.

GIA Institutional Advisors, a subsidiary of GMAC Commercial Mortgage, is a registered investment advisor who has sponsored a series of high yield direct and indirect mortgage securities offerings on behalf of institutional investors.