THE ABBEY COMPANY REFINANCES MAJORITY OF SOUTHERN CALIFORNIA REAL ESTATE HOLDINGS WITH WACHOVIA BANK Company to Enter Joint Venture with Institutional Investor for New Acquisition Program

LONG BEACH, Calif. (Dec. 22, 2005)―The Abbey Company recently completed the refinancing of a significant portion of its Southern California commercial property portfolio. Funding was provided by Wachovia Bank, National Association. The $291,490,000 multi-property debt recapitalization provides The Abbey Company with significant net proceeds after the defeasance of $172 million of existing debt while reducing the company’s debt service costs and extending the loan maturity on all of its fixed-rate debt. The 10-year, securitized senior mortgage financing has a fixed interest rate of 5.19 percent and includes 35 office, industrial, and retail properties with a total of 3,125,000 square feet. The Abbey Company is a commercial real estate investment and management company with 44 investment properties totaling 4,1000,000 square feet in Los Angeles, Orange, San Bernardino, Riverside and San Diego counties and the outlying cities of Fresno, Palmdale and Lancaster. Wachovia Bank, National Association, based in Charlotte, N.C., is one of the country’s largest providers of commercial real estate financing.
“This transaction is the direct result of The Abbey Company’s successful implementation of its value-added business plan over the last 15 years to acquire, upgrade, manage and retain a portfolio of commercial property throughout Southern California,” said Don Abbey, the company’s founder and CEO.
“Now, the next phase of The Abbey Company’s business plan is to acquire an additional $250 million in value-added commercial property throughout California through a newly formed joint venture with a national pension fund advisor,” added Mike Jenkins, the company’s chief investment officer.
The Abbey Company’s existing relationship with Wachovia was instrumental in undertaking this complex refinancing transaction. In addition to providing the new financing, Wachovia assisted The Abbey Company with defeasance of existing debt on the 35 properties. Wachovia had previously provided the company with financing to complete the 2002 repurchase of an institutional partner’s interest in The Abbey Company.

About The Abbey Company
The Abbey Company (www.theabbeyco.com) was established in 1990 by Donald G. Abbey. The company is a vertically integrated real estate organization that handles its own acquisition, leasing, property management and construction services. The company’s investment program is focused on value-added commercial real estate, including office, industrial, business / commerce parks, and retail properties. The company is headquartered in Long Beach, Calif. at the Catalina Landing Office Complex, one of its recent investments.