Mesenchymal precursors cells have been isolated from perivascular niches from a range of tissues utilising a perivascular marker. A new mesenchymal precursor cell phenotype is described characterised by the presence of the perivascular marker 3G5, and preferably also alpha smooth muscle actin together with early developmental markers such as MUC 18, VCAM-1 and STRO-1 bri . The perivascular mesenchymal precursor cell is multipotential and is shown to form, vascular tissue, as well as bone marrow dentin and pulp. A method of enriching using cell sorting based on these markers is also described.