Mesenchymal precursors cells have been isolated from perivascular niches froma range of tissues utilising a perivascular marker. A new mesenchymalprecursor cell phenotype is described characterised by the presence of theperivascular marker 3G5, and preferably also alpha smooth muscle actintogether with early developmental markers such as STRO-1 and CD146/MUC18. Theperivascular mesenchymal precursor cell is shown to induce neovascularisationand improvement in cardiac function. Suitable administration of preparationsof the mesenchymal precursor cells are useful for treatment of cardiovasculardiseases, cerebrovascular diseases and peripheral vascular diseases.