Morgan Stanley Real Estate's Prime Property Fund Completes AMLI Residential Properties Trust Acquisition

Morgan Stanley Real Estate's Prime Property Fund (PRIME)
announced today that it has closed on the previously announced
acquisition of AMLI Residential Properties Trust (AMLI) in an all-cash
transaction totaling approximately $2.1 billion. Under the
transaction, all common shares and limited partnership units have been
acquired for $37.75 per share in cash. Additionally, AMLI's management
team will remain in place to manage the AMLI properties acquired by
PRIME.
   AMLI will be delisted from the New York Stock Exchange effective
at the close of business today.
   "The completed acquisition of AMLI, with its high-quality
multifamily assets, outstanding management team and organization,
strong development capabilities, and recognized brand name in the
sector, is a milestone for PRIME," said Dave Hardman, Managing
Director and Head of U.S. Real Estate Investing at Morgan Stanley. "We
are excited to build upon the track record established by the AMLI
management team and employees by working together to grow the
franchise going forward."
   Gregory T. Mutz, AMLI Chairman and CEO said, "We are pleased that
the value of AMLI's franchise has been recognized in this sale. The
employees and senior management of AMLI are excited to have the
opportunity to create value in the future for the investors in PRIME.
AMLI's management team looks forward to leading AMLI going forward and
growing its presence in the multi-family housing industry."

   About Prime Property Fund and Morgan Stanley Real Estate

   PRIME, a $4.9 billion diversified core real estate fund, is
managed by Morgan Stanley Real Estate. PRIME's assets include office,
retail, multifamily, industrial, self storage and hotel properties and
are located in major real estate markets throughout the United States.
Morgan Stanley Real Estate is comprised of three major global
businesses: Investing, Banking, and Lending. Since 1991, Morgan
Stanley has acquired $73.1 billion of real estate assets worldwide and
currently manages approximately $40 billion in real estate assets on
behalf of its clients. In addition, Morgan Stanley Real Estate
provides a complete range of market-leading investment banking
services to its clients including advice on strategy, mergers,
acquisitions and restructurings, as well as underwriting public and
private debt and equity financings. Morgan Stanley is also a global
leader in real estate lending and, using its own capital, originated
upwards of $24 billion in commercial mortgages in 2005.
   Morgan Stanley (NYSE: MS) is a global financial services firm and
a market leader in securities, investment management, and credit
services. With more than 600 offices in 28 countries, Morgan Stanley
connects people, ideas and capital to help clients achieve their
financial aspirations.