Aimco Announces $726 Million Joint Venture

DENVER, Dec. 21 /PRNewswire-FirstCall/ -- Apartment Investment and
Management Company ("Aimco") (NYSE: AIV) announced today that it has entered
into a joint venture agreement (the "Venture") with a fund managed by J.P.
Morgan Asset Management Inc. ("J.P. Morgan") which provides for the
co-ownership of three multi-family properties with 1,382 units located in West
Los Angeles. Under the agreement, Aimco contributed its wholly-owned
properties The Palazzo at Park La Brea, The Palazzo East at Park La Brea and
The Villas at Park La Brea to the Venture at a value of $726 million, or
approximately $525,000 per unit. The Venture has existing property debt of
$296 million and an implied equity value of $430 million. Aimco received $202
million from J.P. Morgan in exchange for an approximate 47% interest in the
Venture. Aimco will own approximately 53% of the Venture and will operate the
properties in exchange for a property management fee and certain other fees
over the term of the Venture.
According to David Robertson, President and Chief Executive Officer of
Aimco Capital, "Joint ventures allow us to rebalance efficiently our
geographic allocation of capital while maintaining operational scale in our
target markets. The recapitalization of the Palazzo properties is consistent
with our overall asset allocation strategy and our focus on property
operations. J.P. Morgan is recognized as a global leader in investment and
wealth management, and we are pleased to have such a valued partner in this
Venture."
Aimco intends to use the proceeds from this transaction for general
corporate purposes, including the repurchase of common stock under its
approved share repurchase program. "Using the proceeds of this joint venture
to buy back shares at current market prices is accretive to Aimco's
shareholders," said Tom Herzog, Chief Financial Officer. "The Palazzo Joint
Venture is consistent with Aimco's view of the value embedded within our
portfolio."
As announced separately today, in light of the closing of the Venture,
Aimco's Board of Directors has also declared a special dividend.
This press release contains certain forward-looking statements. These
forward-looking statements are based on management's judgment as of this date
and include certain risks and uncertainties. Actual results may differ
materially from those described in these forward-looking statements and, in
addition, will be affected by a variety of risks and factors that are beyond
the control of Aimco including, without limitation: national and local
economic conditions; the general level of interest rates; the competitive
environment in which Aimco operates; financing risks; real estate risks,
including fluctuations in real estate values; acquisition and development
risks; and litigation. Readers should carefully review the risk factors
described in Aimco's Annual Report on Form 10-K for the year ended December
31, 2006, and the other documents Aimco files from time to time with the
Securities and Exchange Commission. These forward-looking statements reflect
management's judgment as of this date, and Aimco assumes no obligation to
revise or update them to reflect future events or circumstances.
Aimco is a real estate investment trust headquartered in Denver, Colorado
that owns and operates a geographically diversified portfolio of apartment
communities through 19 regional operating centers. Aimco, through its
subsidiaries and affiliates, is the largest owner and operator of apartment
communities in the United States with 1,194 properties, including 206,217
apartment units, and serves approximately 750,000 residents each year.
Aimco's properties are located in 47 states, the District of Columbia and
Puerto Rico. Aimco common shares are traded on the New York Stock Exchange
under the ticker symbol AIV and are included in the S&P 500. For more
information about Aimco, please visit our web site at http://www.aimco.com.
SOURCE Apartment Investment and Management Company

Cindy Duffy, Communications of Aimco, +1-303-408-5214,
Cynthia.duffy@aimco.com