Colonial Properties Trust Sells Colonial Bank Centre in Miami; Reinvests Proceeds in Colonial Grand at Shiloh in Atlanta

Business Wire, Sept 15, 2006

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE:CLP), a real estate investment trust that owns a portfolio of multifamily, office and retail properties, announced the sale of Colonial Bank Centre in Miami. The Company realized net sales proceeds of $62.4 million, which were used to acquire Colonial Grand at Shiloh, located in suburban Atlanta, for $50.4 million. The remaining proceeds will be used to fund additional acquisitions.

"We were able to create and recognize tremendous value during our ownership. We upgraded the building with minimal capital cost, increased occupancy, received an attractive sale price and re-invested the proceeds profitably into our expanding multifamily portfolio," said Bo Jackson, executive vice president of Colonial Properties Trust office division. "This exemplifies our opportunistic investment strategy."

Colonial Properties Trust purchased the 19-story, 235,000-square-foot office building in the highly desirable Brickell Avenue submarket of Miami for $44.0 million. To date, the company has invested $2.1 million to upgrade to the property and increased occupancy to 90 percent.

Colonial Grand at Shiloh, formerly named Somerset at Shiloh, is located in the fast-growing suburban Atlanta submarket of Kennesaw and is convenient to Interstate 75. The 498-unit apartment community built in 2002 is 92 percent occupied.

"We continue to acquire Class A apartment communities in top-tier Sunbelt markets as part of our long-term strategy," said Paul Earle, executive vice-president of the company's multifamily division. "We expect to add value immediately at Colonial Grand at Shiloh by focusing on increasing its occupancy."

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 $5.6 billion. As of June 30, the company owns or manages 44,757 apartment units, 19.7 million square feet of office space and 11.9 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 Small Cap 600 Index. For more information, visit www.colonialprop.com.

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"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; 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.