Company officials say all of the current investors in Acadia'sexisting acquisition fund, along with two additional undisclosedinstitutional investors, will invest a total of $240 million ofequity in Fund II. Acadia will invest $60 million in the new fund.Acadia will earn a pro rata return on its invested equity in FundII as well as fees for asset management, property management,leasing and construction services.

Acadia Strategic Opportunity Fund I totals $90 million in equityinvestment. To date, $70 million has been invested or committed toredevelopment of currently owned assets, Acadia officials say.

"Fund II is of a size and structure that enables us to continueto invest opportunistically while still maintaining our investmentdiscipline," says Acadia president and CEO Kenneth F. Bernstein."Most importantly, with non-dilutive discretionary equitycommitments, Fund II allows us to accretively fuel our futuregrowth independently of the increasingly volatile publicmarkets."