Colonial Properties Trust Closes Sale of Colonial Pinnacle and Colonial Promenade Tutwiler Farm.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a real estate investment trust that owns a portfolio of multifamily, office and retail properties, announced that it has finalized the sale transactions of Colonial Pinnacle Tutwiler Farm and Colonial Promenade Tutwiler Farm, both located in Birmingham, Ala., to a joint venture comprised of The GPT Group (GPT) and Babcock & Brown for a gross sales price of $90.0 million. The GPT Group, one of Australia's largest property groups and Babcock & Brown, a global investment and advisory company, are both listed on the Australian Stock Exchange. Colonial Properties, which has an existing relationship with both GPT and Babcock & Brown, will continue to lease and manage both centers. Proceeds from the sale will be reinvested into multifamily properties.

"The sale of these retail assets highlights our ability to create value through development," said Reynolds Thompson, chief executive officer of the company. "This transaction allows us to redeploy our capital into assets with higher growth potential and is consistent with our strategy to move towards a multifamily focus."

Colonial Promenade Tutwiler Farm, a 514,000 square foot power center which is anchored by Super Target and Home Depot as well as six other mid-size anchors, opened in 2000 and is currently 100 percent occupied. The company estimates the gain from this sale will range from $0.20-$0.25 of earnings per diluted share (EPS). Colonial Pinnacle Tutwiler Farm, a 447,000 square foot lifestyle shopping center, opened on October 11th of this year and is anchored by Belk, J.C. Penney, Best Buy, and Parisian. The center is now 99 percent leased. As previously disclosed, the estimated gain from this sale ranges from $0.30 - $0.35 of EPS and funds from operations per share (FFOPS).

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties throughout 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 $5.6 billion. As of September 30, the company owned or managed 46,125 apartment units, 17.7 million square feet of office space and 12.1 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.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Estimates of future earnings, by definition, and certain other statements in this press release may, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; our ability to close transactions; the effect of any rating agency action; the cost and availability of new debt financings; level and volatility of interest rates or capital market conditions; effect of any terrorist activity or other heightened geopolitical crisis; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2005, as may be updated or supplemented in the company's Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.