Colonial Properties Trust Acquires Four Class A Apartment Communities

Business Wire, Feb 14, 2007

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP) today announced the purchase of four apartment communities in Arizona, North Carolina and South Carolina. In four separate transactions, Colonial Properties acquired Colonial Grand at University Center (formerly the Vinings at University Center) in Charlotte, North Carolina; Colonial Grand at Cypress Cove (formerly Cypress Cove) in Charleston, South Carolina; and Colonial Grand at Old Town Scottsdale (formerly Monaco and Monte Carlo) in Scottsdale, Arizona for a total purchase price of $119.4 million. The acquisitions were funded through previous asset dispositions.

"All of the apartment communities purchased are located in high growth sunbelt cities," said Paul Earle, executive vice president of the multifamily division. "We were able to use capital from the sale of older apartment assets located in Alabama to purchase these communities. The redeployment of capital into newer apartment assets located in cities with higher revenue growth potential is consistent with our long-term strategy. Additionally, this $119.4 million purchase of apartment communities furthers our effort to generate 80% of our net operating income from the multifamily division."

Colonial Grand at University Center is a 156-unit Class A community built in 2006 in Charlotte, North Carolina. At the time of the acquisition, the community was 92 percent occupied, and was acquired for $14.3 million.

Colonial Grand at Cypress Cove is a 264-unit Class A community built in 2001 in Charleston, South Carolina. At the time of the acquisition, the community was 97 percent occupied, and was acquired for $29.1 million.

In Scottsdale, Arizona, a well-established submarket of Phoenix, Colonial Properties acquired the Class A multifamily communities Monaco for $42.2 million and Monte Carlo for $33.8 million and re-named them Colonial Grand at Old Town Scottsdale. The 472-unit community was built in 1994 and was 87 percent occupied at the time of the acquisition.

Additionally, Colonial Properties also announced the sale of seven apartment communities for a total sales price of $103.4 million. The seven properties located in Georgia and North Carolina, total 1,705 units with an average age of 19.7 years. The properties include Colonial Grand at Enclave (200 units), Colonial Village at Poplar Place (324 units), Colonial Village at Spring Lake (188 units) in Atlanta, GA.; Colonial Village at Timothy Woods (204 units) in Athens, GA.; Beacon Hill (349 units) in Charlotte, NC.; and Clarion Crossing (260 units), and Colonial Village at Regency Place (180 units) in Raleigh, NC. Proceeds from the sale were used to reduce the company's unsecured line of credit.

Colonial Properties Trust is a multifamily focused real estate investment trust (REIT) which leverages its diversified history to create additional value for its shareholders by managing commercial assets through joint venture investments and aggressively pursuing development opportunities. As of December 31, 2006 the company owned or managed 39,104 apartment units, 17.6 million square feet of office space and 12.1 million square feet of retail shopping space located in key Sunbelt states from Virginia to Nevada. 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 included in this press release are, by definition, and certain other statements (including statements regarding the implementation of the transactions to reposition the operating portfolio to multifamily and the expected timing of such implementation) 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 successfully close previously announced 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.