Citigroup Property Investors Takes On Loreto Bay Company's Sustainable Vision Through a Joint Venture

LORETO, Mexico, Jan. 24, 2007 -- Loreto Bay Company and Citigroup Property Investors (CPI) announced today a joint venture resulting in shared ownership of Loreto Bay Company. The Company is the developer of North America's largest sustainable resort community located in the region of Loreto in Baja California Sur, Mexico. Citigroup Property Investors provided growth capital to the Company to accelerate its business plan, and contributed its share of the Inn at Loreto Bay, a previous joint venture by the two companies, in exchange for units of Loreto Bay Company.

"Citigroup Property Investors' strong reputation and interest in our sustainable platform make them an ideal partner to help Loreto Bay Company's vision become reality," said Tom Nolan, COO of Loreto Bay Company. Loreto Bay's master plan calls for 6,000 village-style homes built in pedestrian- friendly neighborhoods in a community design based on the concepts of sustainable development, aimed to protect and enhance the natural, social and economic environment. Loreto Bay Company's focus on sustainability and commitment to long term financial success were instrumental to Citigroup's decision to participate in the venture.

The association of Loreto Bay Company's sustainable development with a financial firm of the caliber and name recognition of Citigroup provides the development with enhanced credibility, in addition to strengthening the Company's financial security. Both companies share the vision of establishing Loreto Bay as a premier destination in Baja Sur. With the nearby Loreto International Airport, daily non-stop flights from Los Angeles on Alaska Airlines and Delta Airlines, travel to Loreto has increased steadily throughout 2005 and 2006. The development, the Inn at Loreto Bay and the surrounding community will benefit significantly from the major commitment to tourism efforts in the region.

About Citigroup Property Investors
Citigroup Property Investors (CPI) is a global investment manager with offices in New York, London, Los Angeles, Shanghai and Hong Kong, and a presence in Mumbai. With nearly $10 billion in assets under management, CPI invests across both private and public markets with dedicated teams in North America, Europe and Asia. CPI's strength is defined by its research-driven investment strategies, capital market sensitivity and exceptional investment sourcing and execution capabilities. CPI is the real estate investment center of Citigroup Alternative Investments, which brings together Citigroup's broad expertise to create a single platform for the management, development and marketing of alternative investments to institutional and high net worth investors. Citigroup's proprietary capital is used to seed, and co-invest with, investors in CPI's real estate investment funds.