[ 03.06.2008 ]

PHILADELPHIA, P.A. - As we progress through the first quarter of 2008, we want to thank all of our clients and friends who have given Aegis Property Group the privilege of working with them on various projects throughout the last year.

Highlights for 2007 were many. In the higher educational sector:

• Aegis continued to work for Villanova University providing project management services for construction of a 600 car parking garage and a 172,000 square foot law school on its main campus. The parking garage was completed in August, 2007 and the Law School broke ground in October, 2007.
• Aegis was retained during the year by Princeton University to provide project management services related to a 120,000 square foot build-to-suit lease transaction between Princeton University and Boston Properties. Currently, the project is in the design phase and is expected to break ground this summer.
• Aegis continued to work as project manager for the third phase of a high density, library storage facility for a consortium of Princeton University, Columbia University and the New York Public Library. The $13 million third phase broke ground in July, 2007 and is expected to commence initial operations in April, 2008.
• Aegis was engaged by the Philadelphia Industrial Development Corporation to perform a development feasibility study on a new Energy Research Facility for Penn State University in the Philadelphia Navy Yard. The project is currently in the financing phase.

In the K-12 educational sector, highlights included:

• Aegis continued to work with Chestnut Hill Academy on its new Science and Technology Building. Ground was broken December, 2007 on this new building which was designed to be LEED Silver certified and features wind turbine, photo voltaic and solar thermal energy technology design features combined with an innovative, interactive computer graphic teaching interface.
• Aegis also continued to work on the 48,718 square foot new gymnasium project for the Baldwin School which had its topping out ceremony in January, 2008. The project contains a gymnasium, running track, squash courts, pool fitness, and multi-purpose room facilities. Baldwin is expanding the project to include 5 new tennis courts and playing field renovations.
• Aegis led completion of the $10.5 million gymnasium for Rosemont School of the Holy Child which was completed Fall, 2007. Work on a 32,500 square foot new Academic Wing is under way and expected to be completed in August, 2008. Work on renovation of the original “Tudor Mansion” school wing will begin in Fall, 2008.
• Aegis Property Group is providing project management services to Blessed Teresa of Calcutta Parish for master planning, design and construction of a pre-k, K-8 Education Center and 1,000 seat church. Groundbreaking for the 1st Phase Education Center was in November 2007.
• Aegis also continued to assist Moorestown Friends School with their campus
  expansion project.

In the healthcare sector:

• Aegis completed project management services for construction of a new critical access hospital and 67 bed long term care facility for The Fulton County Medical Center. The construction was completed in 17 months and the building was dedicated, with the assistance of Governor Rendell, in November 2007.
• Aegis was selected by Virtua Health to provide project management services for
  the fitout of a new 250,000 square foot ambulatory care center being developed in Washington Township, New Jersey.
• Aegis was engaged by the University of Pennsylvania Health System to assist in
  due diligence during site selection and assist in obtaining agency approvals for a medical office and ambulatory care facility in Chester County. Aegis also assisted in the due diligence and pre-construction planning related to the conversion of the Graduate Hospital Building in Center City Philadelphia for long term care and physical rehabilitation. Aegis’ transaction team has also managed the disposition of the excess real estate acquired in the Graduate Hospital acquisition.

In the corporate and institutional sector, the highlights included:

• Aegis provided comprehensive project management services for Lockheed Martin’s new Stongegate II facility, a 143,000 square foot, 6-story, high security facility in Chantilly, Virginia. The building was completed and occupancy occurred in August, 2007.
• Aegis completed the third and final phase of a 3 floor, 75,000 square foot tenant
  fitout project for Berwind Corporation’s headquarters space at Centre Square
  West in Philadelphia.
• Aegis completed two more phases of the six phase $25 million renovation of the
  Union League of Philadelphia. This work included renovation of the Grant Room
  meeting space and conversion of the lower level storage space into administrative offices, employee cafeteria and locker rooms. Services have commenced on the
  upcoming renovation of the North and South Marble Dining Rooms.
• Aegis Property Group was retained by Rittenhouse Plaza in December, 2007 to provide project management services for strategic planning, design and construction for major capital improvement projects including façade projects, elevator and building system projects.
• Aegis continued to provide project oversight services to the Commonwealth of
  Pennsylvania for the Pennsylvania Convention Center Expansion project.
• Aegis was retained by the Coriell Institute of Medical Research in early 2008 to
  manage their $6 million lab renovation project in support of their Delaware Valley Personalized Medicine Project.
• Aegis began work on the second phase of the Mann Center for the Performing
  Arts’ Master Plan for capital improvements at this renowned Philadelphia
  institution.
• Aegis Property Group completed a major lobby and building entry upgrade project for REIT Management for its Centre Square project. The design included a 4-story interactive light sculpture and reconfiguration of the main entry plaza to improve tenant access to the 2 million square foot premier office building.

In the Senior Living arena, Aegis restructured to meet the growing needs of this sector and Aegis’ growing commitment to the business. In mid-2007, Aegis formalized its relationship with Lifescapes, LLC to form a new company called Eventus Strategic Partners to focus exclusively on the senior living market. This company combines the extensive expertise of Lifescapes in the marketing, financial, and operational feasibility of senior living projects with the project planning, design, preconstruction and construction expertise of Aegis. Highlights for Eventus include:

• Eventus is working on a $100 million expansion for Whitney Center in New Haven, Connecticut. The project includes a new 97 unit independent living building, a complete replacement of its health care facilities and improvements and renovations to common areas, including a complete overhaul of its dining facilities. The project has completed design and approvals, and is in the marketing phase.
  
• Eventus is working with the Evergreens, a continuing care retirement community
  in Moorestown, New Jersey. This $85 million project includes 24 new
  independent units, a complete replacement of its health care facilities, and a
  renovation and upgrade of certain common facilities. The project received
  preliminary and final site plan approval this past month.
• Eventus has completed planning efforts, obtained site plan approval, and is now in the marketing phase of Rosecliff, a 185 unit, $110,000,000 independent living
  project in Lawrenceville, New Jersey.
• Eventus has been engaged by Westminster Manor, a continuing care retirement community in Austin, Texas, as their project consultant, also for an expansion of independent living and upgrades of health care and common facilities. The project has completed schematic design.
• Eventus has also been engaged by Riverview, a senior living client with nursing
  care operations and assisted living operations in Savannah, Georgia. Eventus is
  assisting them in the replacement of their existing facilities on a new site that will
  include the potential to add independent living units.

In its transactional business, Aegis continues to manage the leasing on a 1.4 million
square foot office portfolio and completed several dispositions and ground lease restructuring projects. Highlights included:

• Aegis closed on the disposition of two medical office buildings and three land sites for the University of Pennsylvania Health System which were acquired in the Graduate Hospital acquisition.
• Aegis completed 22 different lease transactions, totaling over 230,000 square feet in Philadelphia and New Jersey related to properties owned by or owned in partnership with BPG Properties.
• Aegis renegotiated and put under agreement the sale of condominium interests in a portion of a large site in suburban Philadelphia on behalf of a trust client.

As our business has expanded, so has our organization and our base of experience. Today Aegis has a complement of 22 individuals and a broad base of experience and expertise in development and transaction management to bring to bear for our clients’ benefit. We take great pride in our clients’ accomplishments and the trust they place in our people. In closing, on behalf of all of the partners and staff at Aegis Property Group, we want to again thank our clients and friends who have given us the opportunity to work with them in the last year. We wish you continued success this year, and hope we can be of service to you.