Colonial Properties Trust Acquires Office Building in Atlanta, Ga.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust that owns a portfolio of multifamily, office and retail properties, today announced that it acquired a controlling 76 percent condominium interest in The Peachtree, an office building in the Midtown submarket of Atlanta, for $43.8 million.

The 20-story Class A property, located at 1355 Peachtree St., was completed in 1989 and features 345,244 square feet. Colonial Properties' interest is currently 75 percent occupied with more than 130,000 square feet held in long-term lease agreements that expire between 2009 and 2015.

"This is an excellent investment for Colonial Properties and has one of Atlanta's marquee addresses along Peachtree Street," said Tom Hallowell, senior vice president in the company's office division. "In addition to its prominent location, this architectural treasure bears that marquee name. The Peachtree is in an area that is widely recognized for its lifestyle amenities. Midtown Atlanta is clearly becoming a live, work and shop market, and the new 17th Street bridge provides enhanced access to The Peachtree."

In a previously announced joint venture agreement with DRA Advisors, LLC, Colonial Properties announced that it will manage 3.1 million square feet in Atlanta when that transaction closes in the third quarter. Coupled with today's investment, the company's office portfolio in Atlanta will comprise 4.3 million square feet.

The acquisition was funded from proceeds gained in the previously announced sales of Colonial Mall Macon and Colonial Mall Burlington.

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.5 billion. As of July 28, the company owned or managed 47,700 apartment units, 8.3 million square feet of office space and 13.5 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.