GMH Communities Trust Completes Refinancing on Four Student Housing Properties

NEWTOWN SQUARE, Pa., March 5 /PRNewswire-FirstCall/ -- GMH Communities Trust today announced the completion of a refinancing of four Company-owned student housing properties with Wachovia Bank. Under the refinancing, the Company placed an aggregate of $90.0 million in mortgage indebtedness on the properties, with each loan having a 10-year interest-only term and bearing a fixed interest rate of 5.6%. The four student housing assets are University Crescent, Baton Rouge, LA; University Oaks, Columbia, SC; University Centre, Kalamazoo, MI; and The Summit, Mankato, MN.

The Company realized net proceeds from the refinancing of $73.6 million, after repayment of existing mortgage loans, payment of prepayment penalties and closing costs. Proceeds were used to pay down an equal amount of outstanding indebtedness under the Company's line of credit. As a result of the refinancing, the Company was able to effectively replace the $73.6 million of indebtedness outstanding under the line of credit, which carried a variable LIBOR-based interest rate of 7.32% as of the date of the refinancing, with new fixed-rate mortgage debt at a rate of 5.6%.

"We are pleased to announce the successful execution of this refinancing, as the first of three of our planned strategic initiatives to improve operational performance of our student housing portfolio while reducing our overall indebtedness," commented John DeRiggi, Chief Investment Officer and President, College Park Communities. "This transaction provided us with liquidity to repay outstanding debt under our line of credit, reduce our average interest rate and further strengthen our balance sheet."

About GMH Communities Trust

GMH Communities Trust (http://www.gmhcommunities.com/) is a publicly-traded Maryland real estate investment trust (REIT). We are a self-advised, self- managed, specialty housing company focused on providing housing to college and university students residing off-campus and to members of the U.S. military and their families residing on or near bases throughout the United States. GMH Communities also provides property management services to third-party owners of student housing properties, including colleges, universities, and other private owners. The Company, based in Newtown Square, PA, employs more than 2,150 people throughout the United States.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are based on our current expectations, estimates and projections about future events and financial trends affecting us are "forward-looking statements." Forward-looking statements can be identified by the use of words such as "may," "will," "should," "expect," "estimate" or other comparable terminology. These statements are inherently subject to risks and uncertainties, including the risks relating to our business presented in our filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.