The D. E. Shaw Group and Metro Development Group Enter into a Joint Venture

NEW YORK and TAMPA, Fla., Jan. 16 /PRNewswire/ -- An entity in the D. E.
Shaw group, a global investment management firm, and an affiliate of Metro
Development Group, a Tampa-based community development firm ("Metro"), have
entered into a joint venture with up to $250 million of committed equity
capital to purchase and develop land throughout central Florida and the
Southeastern region of the United States.
The joint venture will acquire land to develop homesites and residential
communities for builders of entry-level homes. In order to expedite land
development, instead of purchasing un-entitled land, the joint venture will
pursue properties that have been zoned and are pursuing the entitlement
process.
"We are pleased to have this opportunity to partner with Metro at this
important point in the real estate cycle," said Francis Cappello, a principal
in the real estate investment group of D. E. Shaw & Co., L.P. "With our
flexible capital base and our ability to pursue longer-term investments, we
believe we have a significant opportunity to invest in residential homesites
and communities at attractive prices and hold these assets until the cycle
turns and market conditions improve."
"This infusion of capital will allow us to fulfill our short- and long-
range goals of acquiring land worth from $500 million to $700 million in great
locations that can produce large numbers of homesites quickly once the housing
market rebounds," said John Ryan, CEO of Metro Development Group. "In real
estate, location is everything, and this financial alliance with the D. E.
Shaw group allows us to locate Metro Development in the right place at the
right time for the mutual benefit of both companies."
On November 30, 2007, the joint venture closed its first acquisition when
it acquired 8,300 homesites in seven Florida counties. The joint venture
purchased 1,000 additional homesites in Florida's southern Hillsborough County
on December 28, 2007. Metro intends to continue focusing on Florida,
targeting areas from Jacksonville to Ft. Myers. The five-year-old development
firm is also looking for opportunities in the Carolinas, Texas, and other
areas. It is expected that the joint venture will complete all of its
acquisitions within 18 months of formation.
About the D. E. Shaw group
The D. E. Shaw group is a global investment and technology development
firm with more than 1,300 employees; approximately $34 billion in aggregate
investment capital as of January 1, 2008; and offices in North America,
Europe, and Asia. Since its organization in 1988, the firm has earned an
international reputation for financial innovation, technological leadership,
and an extraordinarily distinguished staff.
About Metro Development Group
Founded in 2003, Metro Development Group has been involved in developing
nearly 60 communities throughout central Florida. Last year, the company
generated sales of nearly $200 million. It currently owns or controls more
than 30,000 homesites. Headquartered in Tampa, Fla. -- and with offices in
Orlando -- Metro specializes in land acquisition, zoning, permitting and
developing residential communities. Metro will continue focusing on land in
Florida, targeting areas from Jacksonville to Tampa to Fort Myers. Metro also
is looking for opportunities in the Carolinas and Texas. For more information
on Metro Development Group, visit www.MDGflorida.com.
SOURCE D. E. Shaw group; Metro Development Group

Media, Andy Merrill, andy.merrill@finsbury.com, or Tripp Kyle - New York,
tripp.kyle@finsbury.com, both of Finsbury Group, for The D. E. Shaw group,
+1-212-303-7600; or John Heagney - Holiday, FL, +1-727-942-2718,
Heagneypr@aol.com, for Metro Development Group