n e w s

July 7, 2006
For more information, contact Colonial Properties Trust:
Bo Jackson, 678.461.3303, Executive Vice President, Office Division or
Barbara M. Pooley, 800.645.3917, Senior Vice President, Investor Relations

Colonial Properties Announces Joint Venture & Sale Transaction for Colonial Center at Mansell Overlook

BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 7, 2006--On June 29, Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust that owns a portfolio of multifamily, office and retail properties, completed a combination joint venture, sale, and long-term management and leasing assignment with UBS Wealth Management (UBS) for Colonial Center at Mansell Overlook in Atlanta. The total value of the transaction was $166.4 million at a cap rate of 7.1 percent.

"This transaction with UBS Wealth Management exemplifies Colonial Properties' corporate strategy of recycling capital," said Tom Hallowell, senior vice president, office division for Colonial Properties Trust. "UBS recognized Colonial Properties' ability to create tremendous value from developing a high quality suburban office park in a high growth submarket of Atlanta."

Colonial Center at Mansell Overlook consists of four 6-story, Class-A office buildings, five low-rise buildings and two street-front boutique retail shops. The award-winning suburban office park is 98 percent leased and totals approximately 877,000 square feet with three sites available for future office and retail development.

Colonial Properties Trust will retain a 15 percent interest in a joint venture arrangement with UBS for the four 6-story, Class-A office buildings, two retail centers and three development parcels. UBS will assume 100 percent ownership of the five low-rise buildings. Colonial Properties will maintain operational management and leasing of the entire park through a long-term management and leasing contract. Net proceeds to Colonial total approximately $142.4 million, of which $16.5 million was used to pay off a secured loan, $74.7 million was reinvested in additional property acquisitions and the remaining $51.2 million was used to reduce the company's outstanding unsecured line of credit. Colonial was represented by Eastdil Secured. AEW Capital Management, L.P. represented UBS.

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.5 billion. As of March 31, the company owns or manages 43,937 apartment units, 20.3 million square feet of office space and 11.6 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the effect of any rating agency action; the cost and availability of new debt financings; level and volatility of interest rates or capital market conditions; effect of any terrorist activity or other heightened geopolitical crisis; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2005, which discuss these and other factors that could adversely affect the company's results.