Center Trust Reports $108.1 Million in Second Quarter Acquisitions of Community Retail Centers; Expands Reach in California, Washington, Arizona; Makes First Entry Into Las Vegas.

MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--July 16, 1998--Center Trust (ASE:ACH), a real estate investment trust, Thursday announced that it acquired eight community shopping centers in four Western states, with an aggregate purchase price of $108.1 million, during the second quarter of 1998.

"These acquisitions were carefully selected to enhance our market niche as well as contribute to earnings and shareholder value," said Edward D. "Ned" Fox, Jr., president and CEO. "In addition, we plan to redevelop several of these community centers which will enhance future earnings."

Fox continued: "The acquisition of Charleston Plaza marks our entry into Las Vegas. In addition, we have expanded our presence in Arizona to include over 560,000 square feet of community retail space. We feel that both of these markets afford us the opportunity to add quality properties to our portfolio at attractive returns. While expanding in these Western states, we also have continued to strengthen our position in both California and Washington."

Long-term funding for the acquisitions came primarily from the sale of $50.0 million common stock, representing 3.3 million shares, to an affiliate of Lazard Freres Real Estate Investors Inc. (LFREI), along with the assumption of approximately $25.8 million in non-recourse mortgage financing and borrowings on the company's credit facility.

"The sale to LFREI brings the total amount drawn on the original $235 million commitment by LFREI to $150.6 million, leaving an additional $84.4 million for future acquisitions," Fox said.

"The Lazard Freres commitment allows us to continue to grow our portfolio at very attractive yields in all of our core markets," he added, noting that initial yields on the latest acquisitions averaged in excess of 9.5% with good growth potential.

The second quarter acquisitions include the following:

-- Mineral King Plaza, Visalia, Calif. -- 114,942-square-foot center anchored by Vons and Longs Drugs (acquired May 1, 1998).

-- Madera Marketplace, Madera, Calif. -- 294,059-square-foot center anchored by Wal-Mart and Safeway. The company acquired 175,096 square feet of the center, including the Safeway market (acquired May 12, 1998).

-- Sixth Avenue Plaza, Tacoma, Wash. -- 139,107-square-foot center anchored by Sears, Longs Drugs, Family Bargain Center and True Value Hardware (acquired April 30, 1998).

-- Fairwood Center, Renton, Wash. -- 211,682-square-foot center anchored by Safeway and Quality Food Center (acquired May 18, 1998).

-- Southern Palms Plaza, Tempe, Ariz. -- 254,863-square-foot center anchored by Helig-Meyer Furniture, Outback Steakhouse, Joe's Crabshack and McDonalds (acquired April 30, 1998).

-- Kyrene Village, Chandler, Ariz. -- 161,174-square-foot center anchored by Basha's Supermarket, Kyrene Lanes and Oak Furniture (acquired June 25, 1998).

-- Sunrise Place Center, Tucson, Ariz. -- 40,974 square feet of shop buildings adjacent to currently owned 103,000-square-foot Smith's store. The purchase of the surrounding shop space enabled the company to convert a single-tenant facility into a wholly owned, anchored community center (acquired June 29, 1998).

-- Charleston Plaza, Las Vegas -- 283,646-square-foot center anchored by HomeBase, Lucky's, Sav-On, Family Bargain, Wendy's and Del Taco. The company acquired 234,496 square feet of the center, which excludes the Lucky's market. In addition, the property includes a Hollywood Video currently under construction, the purchase of which will be funded upon completion (acquired June 24, 1998).

Joe Paggi, senior vice president - properties, commented: "We are extremely pleased with our second quarter acquisitions. These assets reflect our continued focus on community retail centers in the Western states. These properties blend nicely with our existing portfolio while adding a significant concentration of high-quality credit tenants."

Center Trust, a fully integrated, self-managed real estate investment trust, is a leading developer, owner and manager of retail shopping centers in the Western United States. The company owns or controls a portfolio of 61 shopping centers, composed of 46 unenclosed anchored shopping centers, two regional malls and 13 single-tenant facilities.

Certain statements contained in this release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from what is currently anticipated. Those risks include, among others, national and local economic, business and real estate conditions that will, among other things, affect demand for retail properties, availability and creditworthiness of prospective tenants, the level of lease rents and the availability of financing for both tenants and the company, adverse changes in the real estate markets including, among other things, competition with other companies, risks of real estate acquisition and development (including the failure of pending acquisitions to close and successful completion of renovations), governmental actions and initiatives, and environmental/safety requirements, and other risks detailed from time to time in Center Trust's SEC filings.

    CONTACT:  Center Trust Inc., Manhattan Beach
               Edward D. "Ned" Fox/Stuart Gulland, 310/546-4520