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THE VANGUARD REAL ESTATE FUND I ANNOUNCES PLANS TO MAKE 'SPECIAL' RETURN-OF-CAPITAL DISTRIBUTION TO SHAREHOLDERS IN DECEMBER

 VALLEY FORGE, Pa., Nov. 12 /PRNewswire/ -- Vanguard Real Estate Fund I announced today that it planned to make a "special" return-of- capital distribution to shareholders in December 1993.
 This special distribution will be in addition to the fund's normal year-end payments to shareholders and is expected to be approximately $1 per share, with the exact amount to be determined in December 1993. The "special" return of capital represents the effective beginning of the fund's liquidation phase. The distribution will be made from the fund's cash reserves, which now total approximately $20 million. Any such capital distribution will reduce the book value of the fund's shares and also the amount of future income the fund may be expected to generate.
 The fund is a finite-life real estate investment trust, established in 1987, with an expected life of seven to twelve years. The fund's board of trustees has reviewed opportunities to invest excess cash reserves in additional real estate investments. However, given that the fund's liquidation period begins in 1994, and was originally projected to be completed by 1999, the board has decided not to proceed with additional real estate investments, due to the short amount of time available to earn a satisfactory return for shareholders. Accordingly, the board has determined that it is in the best interest of shareholders to return the fund's excess cash to shareholders at the end of the fiscal year in the form of a "special" return-of-capital distribution.
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 /CONTACT: Jeffrey S. Molitor, assistant vp of The Vanguard Group, 215-669-6303/


CO: ST: Pennsylvania IN: FIN SU:

JM -- PH020 -- 3901 11/12/93 17:06 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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