A world-class office tower, River Point was designed by noted architectural firm Pickard Chilton and will be built at 444 West Lake Street on the western bank of the Chicago River near two rail hubs in the West Loop, overlooking the river towards Lake Michigan. Containing approximately 83,600 m  (900,000 square feet) of leasable space, the project also calls for construction of a majestic 1.5-acre public park atop the existing rail infrastructure that will connect the tower and its 180 linear metres (450-linear feet) of newly landscaped walkway to the Chicago Riverwalk.

The tower is pre-certified LEED® Gold.
 

“This project not only represents welcome economic news, it also responds to increasing corporate demand for the highest quality real estate,” explained Daniel Fournier, Chairman of the Board and Chief Executive Officer of Ivanhoé Cambridge. “River Point also offers us the chance to strengthen our strategic partnership with Hines, a flagship player in high-end real estate in the U.S. and around the globe.”

“River Point will drive strong enthusiasm in the next-generation real estate product market and will be a striking addition to Chicago’s much-loved and world-renowned architectural character,” commented C. Kevin Shannahan, Senior Managing Director/CEO – Midwest and Southeast regions at Hines. “Ivanhoé Cambridge’s formidable commitment to this development and the city of Chicago is a beacon for economic recovery.”

According to Mayor Rahm Emanuel, River Point will be the largest real estate project to be launched in the past five years in Chicago, where no other office tower construction projects are currently underway. "River Point is a vote of confidence for our city, welcome news for the local economy, and a signal that Chicago is leading the nation in job creation and economic development,” said Mayor Emanuel. "The investors and developers are starting this project because they see that Chicago is a city on the move, shaping its own future, and attracting the best and brightest."

The partnership of Hines with Ivanhoé Cambridge has an established track record for successful development in recent years with two other high-profile construction projects: Eighth Avenue Place in   Calgary, Alberta, and the T1 tower in the La Défense business district of Paris.
In addition, Ivanhoé Cambridge, with Hines as its partner developer, recently won a Paris competition among architects, developers and investors for construction of a twin-tower complex in the city’s 13th arrondissement. The project, called “Duo,” was selected over projects from three competing teams and has been declared the winner of the Paris Mayor’s Office Premier Immeuble de Grande Hauteur competition.

“The River Point project is truly exceptional, not only for its prime location and architectural quality, but also because it is taking shape at an auspicious moment, with all signs pointing to a substantial increase in demand for new office properties in downtown Chicago in the years to come,” noted Bill Tresham, President, Global Investments, Ivanhoé Cambridge. “This is great news for Ivanhoé Cambridge, for Hines and for many large-scale corporations seeking prestigious and functional office space.”

With 9.6 million inhabitants, Chicago is the third-largest city in the United States. It is home to headquarters of more than 400 corporations -- 29 on the Fortune 500 list. Several corporations have already expressed interest in leasing space in a next-generation, well-located office building.

Bentall V, a 33 storey, 583,000 square foot office tower located in the heart of Vancouver's central business district is one of Canada's premier office towers and a Vancouver landmark. The building, originally developed by Bentall Kennedy in 2002 and 2007, is one of the few vertically phased office towers in the world and is currently 100% leased. Vancouver remains one of the tightest markets in North America with Class A office vacancy rates of approximately 3%.

"Following direct discussions with Deka, we were very pleased to pursue this "AAA" office asset. Our knowledge and comfort with Bentall V, which we developed and have managed since its inception, combined with the very attractive long term prospects for the Vancouver office market made this a unique opportunity for our clients", says Paul Zemla, Chief Investment Officer for Bentall Kennedy's Canadian operations.

Deka Immobilien had acquired the asset in the spring of 2009.
 

L to R: Ali Ghani, CEO and Dr. Abdul Ghani, CFO, PRISM Group of Companies are joined by Jim Clement, Operations Manager, Graham Construction and Ricky Arshi, President, PRISM Investments to break ground on 11th Avenue Place in the Beltline District in Calgary.

The ultra-modern 200,000+ square foot, 10-storey building will include an Executive Area Penthouse and two outdoor terraces sits on over half an acre of land opposite the IBM Corporate Park Building on 11th Avenue SW. It will feature a LEED® GOLD Core and Shell and energy-efficient construction including high-efficiency HVAC and controls, additional insulation in walls and roof, ultra efficient washroom fixtures and landscaping and highly reflective (TPO) roofing. Windows are sealed and double glazed with argon gas, featuring reflective glass with low 'E" coating. The south elevation includes "sputter" glazing and fixed window shading to improve energy efficiency.

"This day is a testament to the patience, confidence and discipline of our valued and trusted investors," said Ricky Arshi, President of PRISM Investments, the investment arm of PRISM Group of Companies. "Prior to when the market turned in 2009, we had just purchased this land. The fact that an IMPARK parking lot existed here made it possible to ride out the downturn, and even to generate some cash flow for our investors while we waited for the market to be ready for a LEED® GOLD certified commercial real estate development."

With more than 60% of the space already committed to a Calgary Environmental Consulting firm, PRISM is confident that the remaining space will be snapped up quickly. "We are confident that the commercial office real estate market in Calgary is rebounding and that there are a significant number of tenants who will enjoy the amenities offered at 11th Avenue Place, including its access to transit and major commuting arteries and energy-efficient design," added Arshi.

"The mission of PRISM is to provide our clients with environmentally-friendly, high quality and strategically located commercial, retail, office and industrial real estate," said Ali Ghani, CEO of PRISM Group of Companies. "We are proud that 11th Avenue Place will achieve each of those criteria."

 

               Total                                                   697,533     $  54.1            7.39%     97%


 

BTB Real Estate Investment Trust continues on its growth strategy and profitability increase

The Trustees of BTB Real Estate Investment Trust (TSXV: BTB.UN) ("BTB") release today the financial results for the first quarter ended March 31, 2012 and the following highlights:

First quarter 2012 Highlights

    Increase of:

    13% in rental income from $9.7 million to $11.0 million
    13% in net operating income (NOI) from $5.1 million to $5.7 million
    79% in distributable income from $0.7 million to $1.2 million
    300% in funds from operations (FFO) from $297,000 to $867,000
    218% in adjusted funds from operations (AFFO) from $412,000 to $899,000

    Improvement:

    of 2.4% in debt ratio
    of 36 basis points in the average mortgage loan rate
    of occupancy rate from 90.1% to 91.0%

    Decrease of:

    9% in interest expense on mortgage loans in same-property portfolio

    On February 16, 2012, closing of a distribution of 18,750,750 units for gross proceeds of $17.3 million.

    On March 28, 2012, 2.5 million warrants were exercised for a capital contribution of $1.9 million.

    Bringing into operation and official inauguration of Phase 2 of Complexe Lebourgneuf on March 28, 2012.

SUBSEQUENT EVENTS

    On April 19, 2012, three industrial properties were acquired in the Greater Montreal area at a total cost of $14.7 million, providing over 166,000 square feet of leasable area.

    On May 1, 2012, a $10.5 million mortgage financing agreement was entered into at a rate of 4.2% for a five-year term on property acquired on April 19, 2012.

    On May 8, 2012, an office building was acquired in the Greater Ottawa area at a cost of $14.1 million, which has approximately 54,000 square feet of leasable area. A mortgage financing agreement of $9.5 million was entered into at a rate of 4.2% for a five-year term upon acquisition of this property.

"BTB's acquisitions bear fruit and contribute remarkably well to BTB's important growth in its operating ratios.  The 79% increase in distributable income is noteworthy thus ensuring an increase in BTB's profitability" stated Michel Léonard, President and Chief Executive Officer of BTB.

 

All three properties are fully leased by Shred-it, the world's leading secure information destruction company. Collectively they are situated on 38 acres of land with clear visibility from major highways. The facilities include over 340,000 sq. ft. of industrial space and 37,000 sq. ft. of office space in the highly sought after markets of Ottawa and Oakville.

Property Details 1218 South Service Road, Oakville, ON 2794 South Sheridan Way, Oakville, ON 1171 Kenaston Street, Ottawa, ON

Property City Asset Class Year Built Lot size (acres) Area SF Ceiling Height (ft.) 1218 South Service Oakville Industrial 1978/1988 17.6 256,604 32/36 2794 South Sheridan Way Oakville Office 1999 3.0 36,698 22 1171 Kenaston Street Ottawa Industrial 2007 7.0 86,003 52 Total - - - 37.6 379,305 -

“High-quality Class A and Class B office and industrial properties, such as these Shred-it facilities, are difficult to acquire in markets like Ottawa and Oakville, “said Kevin Leon, Crestpoint's President. “Being fully leased to a prime tenant at below market rates provides both stability and the opportunity for income growth over the coming years. These properties are great additions to our portfolio of assets and will increase the regional diversification of our holdings.”

For additional details on these properties, please visit www.crestpoint.ca

So how do they do it? Teachers’ has a simple recipe...with rare ingredients:

Read More

"We are pursuing our strategic plan to acquire high-quality buildings in the best markets. Investment opportunities such as this one are quite rare these days," said Bill Tresham, President, Global Investments, at Ivanhoé Cambridge.

The office building, 362,000 square feet (33,660 m2) in size, is located in the heart of Paris' central business district. Its value-creation potential is considerable due to the future arrival of new metro lines to service Porte Maillot.

"This acquisition is important because it gives Ivanhoé Cambridge a foothold in a very sought-after district," said Méka Brunel, Executive Vice-President at Ivanhoé Cambridge Europe. "This is also an opportunity to assume the ownership of a building that is fully leased for nine years by French industry leader PSA Peugeot Citroën."

Ivanhoé Cambridge, through its subsidiaries, owns a portfolio of 14 office buildings and seven shopping centres in Europe. It also owns the T1 tower located in the La Défense district.


 

The deadline for filing applications for review against assessments for these 2012 rolls is April 30, 2012. Failure to file by that date means acceptance of the assessed values for three years.
2013 Assessment Rolls In 2013, there will be new triennial assessment rolls for more than 500 Quebec municipalities, such as Laval, Québec, Longueuil (including Greenfield Park and St‐Hubert), Boucherville, Brossard, St‐Bruno, St‐Lambert, Ste‐Julie, Candiac, Carignan, Varennes, Vaudreuil‐Dorion, Repentigny, Blainville, Châteauguay, Granby, Magog, Mascouche, Rouyn‐Noranda, Saguenay, St‐Eustache, St‐Hyacinthe, Shawinigan, Sherbrooke, Trois‐Rivières and Victoriaville. These rolls will be deposited next
autumn and will take effect in January 2013.

Click here for the complete PDF document
 

This is a three part intervirew series, in the first segment, Mr. Griffith explains how to build a bridge with the community, in the second part, he talks about the Sustainability Center Target is implementing. In conclusion, he comments on the Canadian Market Supply Chain and his experience with all the landlord negociations.

Chengdu has emerged as the premier China50 real estate market; Chongqing, Shenyang and Tianjin have built up the strongest momentum.

To keep pace with the phenomenal speed of economic growth, over 80 million sq. m of modern retail and nearly 30 million sq. m of Grade A offices will be built in China50’s main cities over the remainder of the decade, bringing much needed stock to the market.

Jones Lang LaSalle predicts that retail will provide the greatest real estate opportunity in China50, and that significant opportunities will also exist in the logistics sector.

KK Fung, managing director for Jones Lang LaSalle Greater China said: “The new China50 are being transformed at an unprecedented rate by the scale of building and by the progress of economic development. They are the cities that we believe will be hitting the headlines over the next decade and that will provide opportunities beyond the familiar Tier I cities.”

Michael Klibaner, head of research for Jones Lang LaSalle China noted: “These 50 cities combined are expected to account for 12% of overall global economic growth over the next decade and China50 contains all of the world’s ten fastest growing large cities, led by Chongqing, Tianjin and Chengdu. These numbers are a clear signal that China50 is one of the world’s most exciting real estate opportunities.”

The development of over 100 million sq. m of commercial space over the next decade is bringing much needed high-quality stock to these 50 cities. As developers move deeper into China50, it is also helping to support the expansion of domestic and international corporates, retailers and hotel operators across the China50, into Tier 3 cities as they tap into favourable demographics and seek ‘first mover’ advantage.

“As the volume of tradable property assets increases and transparency improves, institutional investor interest in commercial real estate in the China50 will increase.  Their focus will be on the retail sector, which provides the largest real estate opportunity, driven by strong growth in China50’s middle class population, which is expected to double to over 125 million by the middle of the decade.” noted Mr Fung.

Significant opportunities also exist in the logistics sector where there is a severe under-provision of international grade stock; China’s total modern logistics stock is barely equally to that of Boston in the United States. Prospects for logistics will be further boosted by improving transport infrastructure, retail growth and a shift inland of China’s manufacturing base.

KK Fung concluded:  “The China50 offers a compelling long-term growth story, but the road to maturity is unlikely to be smooth and fears of excessive risk may lead to some caution in the property market over the short to medium term.  They will not be immune from volatilities in the global economy, but importantly, some China50 cities, such as Chongqing, Wuhan and Xi’an may prove to be more resilient than most, underpinned by the structural growth of China’s domestic economy.”

The China50 report is available via our website www.joneslanglasalle.com/China50Cities
 

The alveolate structure has been transposed to create an elegant motif displaying a variety of textures that responds to the changing light. The screen openings of the facade reproduce both the scale and the texture of the local brick, which are enriched through a wide range of colors ranging from silver to gold. The blue of the Pfizer logo is also very visible and create a recurring theme; it occurs both on the external facade and in the core of the building. A bond is created between the industrial park, the highway, the company and the building space. Vivid and contemporary, the facades give expression to the unity of the whole. Inside, the redefinition of the site offers brand new, healthy and inspiring workspaces leading the way to a greater economic impact while attracting utmost qualified employees.

Change in culture. The occupancy ratio between common areas and closed offices went from 44/56 to 85/15. Eight hundred and sixty individual work stations have been streamlined and opened up through innovative design to increase productivity and the comfort of users. They focus on intercommunication between employees and an enhanced approach to cooperation. The interconnections are tangible: work, relaxation and service areas have been designed to innovate and optimize the sharing of ideas. All work stations are enclosed by lateral and transversal traffic corridors to ensure fluidity and ease of movement between groups. Physical departmental barriers have been removed in order to promote the social values of the company. Access points offer the possibility of modifying group working areas, particularly in terms of workloads. Flexible and open work areas have been developed as well as private areas, glassed conference areas with a view over the gardens and the work rooms located on the periphery of the working areas. The result of this organization is a fluid ring of traffic. The full redefinition of work functions and qualities for employee work stations ensures that employees will discover new ways to live and work.

The construction materials used, such as clear and opaque glass, aluminum and wood, reflect ambient light to create texture. The distribution and arrangement of these primary materials also highlight the multiple functions of various spaces. The entrance way to the main building offers luminous integration to the new façades which act as curtain walls. Materials were chosen not only for quality and longevity, but also for their technical features and plasticity. The design concept is based on the enhancement and the democratic access to natural light, in order to ensure that it illuminates each work station. The floor plan made possible the generous use of windows to ensure an abundance of natural light and views. All work areas are bright and luminous. The closed offices and conference rooms have windows and are located in the central nucleus of the building in order to benefit as much as possible from borrowed light. Thanks to an open design, most work areas have optimal access to natural light.

MENKÈS SHOONER DAGENAIS LETOURNEUX Architectes

A series of significant steps marked the evolution of our agency over almost half a century and led to the establishment of the new firm MENKÈS SHOONER DAGENAIS LETOURNEUX Architectes in 2004.

Our projects in the institutional, corporate and cultural domains have established a reputation for excellence. Our expertise is reflected in an even wider array of activity, ranging from housing developments to high technology laboratories. We have vast experience in the management of complex projects and develop practical and aesthetic solutions that benefit users, the environment and the economy alike.

Bolstered by 50 years of experience, our agency offers a complete range of services in the architectural domain. Our approach is based on the ability to listen attentively and the desire to provide responses tailored to the clients’ needs. This emphasis on an exchange of views allows us to forge strong and lasting relations with our clients.

Our agency has consistently and repeatedly won some of the most prestigious architectural awards, highlighting our team’s talent and know-how.

Project leader: Anik Shooner, partner and architect
A 1987 graduate of the School of Architecture of the University of Montréal, Anik Shooner co-founded the firm Menkès Shooner Dagenais Architects in 1994. Convinced that the architectural quality of our environment affects our lives, her practice reflects her commitment to sustainable development fully integrated with the search for excellence. Creativity, and a demonstrated knowledge and mastery of each architectural project characterize her professional approach. Ms. Shooner’s career has featured projects hailed by the architectural community.

Principal designer: Jean-Pierre LeTourneux – partner and architect
A 1983 graduate of the School of Architecture of the University of Laval, in 1989 Jean-Pierre LeTourneux founded the firm Dupuis LeTourneux Architectes, which today operates under the name of Menkès Shooner Dagenais LeTourneux Architectes. His capacity to understand urban issues, his deep-seated knowledge of construction, and his talent as a designer help to drive the agency.

Official name of the project: Pfizer Canada inc. siège social
Location: Kirkland (Québec)
Client: Pfizer Canada inc.
Architects : Menkès Shooner Dagenais LeTourneux Architectes
Project architect: Anik Shooner, architecte associée
Team: Jean-Pierre LeTourneux – architecte associé, Paolo Zasso, Julie Morin,
Kristi Ante, Marlène Bourque, Marc-Antoine Chartier-Primeau, Mylène Deschênes, Shahinda Eldessouki, Pierre Gervais, Jean-François Jodoin, Vincent Lauzon, Josiane Mac, Isabel Noël, Annie Paradis, Harvens Piou, Gaétan Roy, Isabel Roy , Michel Tessier,
Engineers: Bouthillette Parizeau et Associés, Marchand Houle et associés, SDK et Associés
Contractor: MAGIL Construction Corporation
Surface: 21 160 m2
Cost: 12,7 M$
Project end date: Juillet 2011
Photographer: Stéphane Groleau (photos de projet) Laurence Labat (photos d’associés)
Media contact : Annie d’Amours, coordonnatrice des communications, annie.damours@msdl.ca 514.866.7291 poste 255

For more information : www.msdl.ca

Represented by BLJC Orange, Crate & Barrel is looking to expand throughout the Vancouver region. The “CB2” concept first opened in Chicago in 2000 and offers modern home design that’s clever, yet simple, and with great attention to detail, carefully crafted and always surprisingly well priced.
 

Jones Lang LaSalle  has spent the past 18 months growing the multi-national’s Canadian presence with expansion taking place from the east coast to the west.

“We’ve really done a good job of building the base,” says Becker, who is president of JLL’s Canadian operations, “and adding industrial expertise, adding office expertise, adding agency expertise are really the things that become long-term cornerstones for our Canadian platform.”

During the past year-and-a-half expansion period, JLL opened headquarters in Vancouver, growing its business and platform there before more fully saturating western Canada’s market with the recent opening of its Calgary office.

In addition, the company also strengthened its operations in the east in Toronto, Montreal and Mississauga in addition to opening a new office in Ottawa. With the new acquisitions naturally comes new talent, namely Doug Hitchcox and Mike Case, who were wooed from a very prestigious Toronto firm to head up JLL’s sustainability portfolio.

 “We think that that’s an area of growth obviously in Canada,” says Becker. “We also think it’s a key area for the firm on a global basis and we are very committed to driving sustainability in our portfolio but also in our client’s portfolio. So we think that would be a great addition to our team.”
Becker speculates that JLL is poised for long-term, continuous growth by virtue of the people the company hires.

“We’ve really built a very strong culture,” says Becker. “We have folks that are thinking about the enterprise and they are thinking about how they can serve their clients.”
The future for Jones Lang LaSalle in Canada looks very bright, says Becker, who fully intends to embrace and export to Canada those doable workings that represent the best of JLL, whether it is property management, facility management, mobile engineering services and capital markets.

“There is any number of things that we think are going to be viable components of our service line on an ongoing basis in the future.”

JLL’s Canadian growth is a natural career progression for Becker, who comes to his role with more than 26 years of national transaction experience. Prior to his Canadian appointment, Becker opened JLL’s Detroit corporate offices and oversaw the firm’s growth and development in Ohio and Minnesota.
Becker’s extensive experience extends to the development of advisory services, strategic portfolio planning, financial analysis, transaction management and execution, site selection, incentive negotiations and project delivery.

Jones Lang LaSalle’s history spans more than 200 years beginning in London in 1783 and including partnerships and mergers too numerous to mention. In the 1950s, the company began its global expansion mode opening its first U.S. office in New York by the mid 1970s. More mergers and acquisitions would follow making the company a leader in global, commercial real estate services and investment management and winning it numerous awards for its energy and sustainability efforts,  as a best place to work and, most recently, as one of the world’s most admired companies in 2011.

Today, JLL’s more than 40,000 people in 1,000 locations in 70 countries serve the local, regional and global real estate needs of those clients and manage to grow the company in the process.


 

Natal Shopping, Natal, Brazil
Opening date 1992
Number of levels 2
Gross leasable area 176,000 sq. ft. (16,400 m2)
Number of stores 120
Number of parking spaces 910
Renovations are currently being done to the centre’s interior.
Expansion project:
Launch of the project: February 2012
Slated for completion: Fall 2013
Additions:
105,974 square feet (9,845 m2) of gross leasable area
71 stores, 6 movie screens
600 parking spaces
Public Affairs and Communications/ Ivanhoé Cambridge / March 1, 2012
Location of the properties owned or managed in Brazil

Acquisitions
Through its joint venture, Ancar Ivanhoe, Ivanhoé Cambridge has purchased land in Fortaleza, Brazil’s fifth-largest city, for the purpose of building a large-scale shopping centre. As part of this transaction, Ivanhoé Cambridge has forged a new partnership with Rossi Residencial, a local company which owns several parcels of land in Brazil and that boasts over 40 years of solid experience in construction and engineering.
The real estate subsidiary of the Caisse de dépôt et placement du Québec is also investing in an expansion project at one of its existing properties: Natal Shopping in Natal.

Fortaleza and Natal Shopping
1. These new projects are inline with Ivanhoé Cambridge’s strategy to grow its portfolio of shopping centres through acquisitions and development projects.
2. Ivanhoé Cambridge entered the Brazilian market in 2006 in partnership with Ancar, now known as Ancar Ivanhoé.
3. Ancar Ivanhoé is Brazil’s fifth-largest real estate company.
4. Ivanhoé Cambridge owns or manages 18 shopping centres throughout the country.
Public Affairs and Communications/ Ivanhoé Cambridge / March 1, 2012
Fortaleza, Brazil
Development project
Planned opening date Fall 2013 (Phase 1)
Number of levels 3
Gross leasable area 352,800 sq. ft. (32,800 m2)
Number of stores Over 250 stores, including 4 anchors, 10 mega stores and a 6-screen cinema
Number of parking spaces 1,960
- Ivanhoé Cambridge announces the acquisition of a development lot in Fortaleza, the capital of the state of Ceará in northern Brazil. Fortaleza is Brazil’s fifth-largest city.
- The site boasts excellent visibility and is accessible from two main roads leading to the city centre and several residential areas.

“Following the acquisition of an additional interest in Botafogo Praia Shopping in Rio de Janeiro back in January, the timing is perfect for these additional investments,” explained Claude Sirois, Senior Vice-President, Emerging Markets, Ivanhoé Cambridge. “The demand for shopping centres in Brazil is keeping pace with the country’s dynamic economy. This is an exceptional opportunity for us to position ourselves as a partner of choice for local retailers and investors in a key market in which we will continue to invest.”

Partnership
In addition, Ivanhoé Cambridge is strengthening its relationship with Ancar, a strategic partner that has played a key role in providing added-value to the Brazilian real estate portfolio. The Quebec-based company has acquired an increased interest in joint venture Ancar Ivanhoé. “This additional interest reflects our strategy to develop strong, sustainable business relationships with key partners in targeted emerging markets,” indicated Claude Sirois.

Ivanhoé Cambridge entered Brazil in 2006 in the form of a joint venture with Ancar, a company with an exemplary track record in shopping centre management. Ancar Ivanhoé now co-owns ten shopping centres.
 

Location of the properties owned or managed in Brazil

Located in the new heart of the cultural and recreational district of Laval (Agora District), on boulevard St Martin, west of autoroute des Laurentides, Place Bell will consist of an amphitheatre and both office and commercial spaces.

Harden Group has entered into a long-term agreement with Evenko to develop the commercial aspects of Place Bell. This agreement will allow Harden Group to offer medical, retail, office and restaurant services to the residents and visitors of Laval which will not only enhance the experience at Place Bellbut will be a great addition to the development in the Agora District.

The amphitheatre will feature three rinks, one housing10,000seats which will be designed to offer year-round events including concerts, family, sporting, theatrical, and corporate events and two other rinks seating 2500 and 500 seats which will be open to local ice sports associations and the Laval community.
Together with Evenkowho will be responsible for eventprogramming, maintenance and management of the amphitheatre and Bell who will offer the public a compelling entertainment experience using its cutting-edge technology, Harden Group is excited to participate in making Place Bell vibrant and diversified and creating a venue that is a local and international attraction.

For more information on the project Click here

Construction of the complex is slated to be completed in late 2014.
Laval is the third largest city in Québec and the 15th in Canada, with a population of over400,000 people. It is one of the regions in Québec where demographic growth is the highest. It is located at the crossroads of five autoroutes and four highways and is a hub between the metropolis of Montreal and the Laurentians.  Over the years, Laval has become a regional economic centre comprising strong, diversified commercial and industrial structures.Laval’s tourism industry generates revenues of nearly $120 million (4500 jobs) and attracts over one million people each year.

For leasing inquiries please contact Tyler Harden at tyler@hardengroup.ca or at
450-424-1101.
 

The average purchase price per suite of the Co-Owned Properties is estimated to be approximately
$111,000. Chartwell and HCN have received independent third party appraisals indicating that the
appraised value of the Properties exceeds the purchase price of the Properties.

“With the completion of this important transaction, we are increasing our focus on the strong, stable and
growing Canadian market,” commented Brent Binions, Chartwell’s President and CEO. “Most importantly,
the acquisition is expected to be immediately accretive to our AFFO per unit, on a debt-neutral basis, and
make a strong and growing contribution going forward.”

Mr. Binions continued: “This acquisition is consistent with our previously stated strategies to: (a) focus on
our core business by expanding our presence and leveraging our management infrastructure in existing
Canadian markets and thereby increase the percentage of total AFFO derived from our Canadian
property operations; and (b) enhance profitability by growing our presence in the higher-margin
independent/assisted living segments. We have completed extensive due diligence on this acquisition
and are confident that the quality of the Properties will enhance our already strong reputation for
delivering the highest levels of care and service.”

“We are very pleased to be entering into the arrangement with Health Care REIT, a highly experienced
and well capitalized participant fully committed to the North American seniors housing business” said Mr.
Binions. “We are also pleased that all of the approximately 2,400 people employed at the Properties, and
a number of Maestro head office professionals, will continue to be employed in connection with the
Properties. Chartwell is already active in all of Maestro’s major markets in Canada, which will ensure that
this transition will be a smooth one. In particular, Chartwell’s current Québec operations include
approximately 5,000 seniors housing suites, nearly 1,700 employees and a significant regional corporate
office, which will now expand its headcount. We are progressing well with our plans to integrate the
operational, sales, marketing and other disciplines supporting the Properties into the Chartwell
organization,” Mr. Binions continued.

“Health Care REIT is pleased to make this investment in Canadian seniors housing. The Canadian
economy is strong and this investment with Chartwell provides our company with the opportunity to work
with the premier seniors housing operator in Canada,” said George L. Chapman, Chairman, Chief
Executive Officer and President of Health Care REIT. “Chartwell has a reputation for delivering excellent
quality care and service to their residents and strong financial results to their investors. We have great
confidence in their ability to successfully manage the communities. We look forward to a long-term
investment in Canadian seniors housing and a lasting relationship with Chartwell.”

“We are satisfied with this transaction, which further solidifies our residence network and guarantees its
future. As experienced investors in the North American industry, Chartwell and Health Care REIT were
quick to recognize the quality of our portfolio of residences and the expertise of our employees, who will
continue to serve our residents to the highest standards of excellence,” said Pierre Ferland, President of
Maestro.

“We have been managing properties for third parties for over 20 years in the US, and
have decided that the timing is right to enter Canada to continue our growth and
expand our presence in the province and across the nation,” commented Joel Ospovat,
President of Sandalwood.

The new venture will initially focus on retail and office properties within the province of
Quebec with plans to expand nationwide. This service was launched with the successful
acquisition of management of 250,000 square feet of retail space on the South Shore of
Montreal.

For more information about Sandalwood 3rd party management, please contact :
Bryan Schneider 514.281.4040 x. 2343 / bryan.schneider@sandalwoodmgt.com
 

Given the challenges and opportunities thrown up by the rise of the internet have been obvious for the best part of a decade, the sudden panic from local retailers as they belatedly rush to embrace online makes you wonder.
After more than a year of uproar from the likes of Gerry Harvey, the rationalisation at Dick Smith, the problems with JB Hi-Fi, the collapse of Borders and Colorado, fashion chains suddenly have found themselves in the firing line. Solly Lew's Premier Retail is desperately trying to remake itself and yesterday it was Speciality Fashion Group's turn. A 64 per cent slump in earnings was accompanied by plans to shut 120 stores in the next three years and a pledge to boost online sales. Read more

"The Caisse delivered a solid performance in 2011—a year of many challenges in the markets," said Michael Sabia, the Caisse's President and Chief Executive Officer.
The year 2011 was impacted by the European sovereign debt crisis which, combined with fears of a slowdown in emerging markets, heavily affected markets. Under these excessively volatile market conditions, the Caisse acted quickly by reducing its exposure to equity between the end of June and the end of September and by maintaining a high level of cash. It was also able to capitalize on its investments in Fixed Income, Private Equity, Real Estate and Infrastructure and generate a positive return for its depositors.
"Since 2009, we have worked on improving our ability to face turbulent markets. We have simplified our investment strategies, reduced our leverage and developed new tools, thereby enhancing our efficiency and agility. In 2011, these efforts served us well. Despite difficult conditions, we were able to adjust our asset allocation to protect our depositors' capital and notably grow our assets. After three years of hard work, the Caisse's net assets now stand at $159.0 billion, $3.6 billion above the level reached prior to the 2008 crisis," said Michael Sabia, the Caisse's President and Chief Executive Officer.
CHANGES IN THE CAISSE'S NET ASSETS 2007-2011 ($ BILLIONS)
A chart is available on the Caisse's website
Since December 2008, depositors' net assets grew by $38.9 billion. This growth is attributable to net investment results of $35.2 billion, plus net deposits of $3.6 billion. For 2009, 2010 and 2011, the Caisse's annualized return was 9.1%.
SUMMARY OF RESULTS SINCE 2008
                               
      Return     Operating Expenses and
External Management Fees     Leverage
(percentage of
total assets)
      $ billions     %     $ millions     bp     %
2008     (39.8)     (25.0)     314     21.2     36
3 years                              
2009     11.8     10.0     271     22.0     23
2010     17.7     13.6     269     19.4     17
2011     5.7     4.0     278     18.0     17
Total     35.2     9.1 ¹     273 ²     19.8 ²     n.a.
¹ Annualized return
² Average
"We still have substantial ground to cover, however our performance over the last three years shows that the changes we have implemented are bearing fruit with respect to returns, operational efficiency and risk reduction," commented Mr. Sabia.
2011 ACHIEVEMENTS
During 2011, the Caisse finalized the implementation of the five priorities of its strategic plan and completed an in-depth review of its investment strategies, particularly concerning equity markets and its investments in emerging markets. "We also made significant progress in each of the three components of our contribution to Québec's economic development, namely, investing in promising Québec companies, providing support to companies intent on expanding internationally, and developing entrepreneurship," added Mr. Sabia.
Strong Growth of the Caisse's Assets in Québec
The Caisse's assets in Québec grew by more than $4.5 billion in 2011, now exceeding $41 billion. During the year, we invested in approximately 100 different projects, which include, in particular:
•    $400 million in the consortium which began construction of the new CHUM, a major project for the future of cutting-edge medicine;
•    $800 million in many successful companies, including Cascades, GENIVAR, Industrial Alliance and Kruger;
•    $160 million  in the acquisition of Montréal's Rockhill complex and close to $50 million  in a dozen real estate projects, including the renovations of Mail Champlain and Château Frontenac;
•    $60 million to benefit 58 SMEs located in all regions of Québec, through the Fonds Capital croissance PME, a partnership between the Caisse and Desjardins Group.
Furthermore, the Morningstar National Bank Québec Index, focused exclusively on Québec companies, has been integrated in the Canadian Equity portfolio's benchmark index to better reflect Québec's economic weight. Accordingly, the weighting of Québec securities in the Canadian Equity portfolio grew from 17% at the end of 2010 to approximately 21% at the end of 2011, an increase of close to $600 million.
Finally, the Caisse continued working to forge closer connections with the business community throughout Québec. It also worked closely with Québec universities active in developing financial expertise.
Other Achievements
The Caisse made major investments in other sectors, thereby strengthening its international presence. It also continued to improve both its risk management and in-house expertise, which resulted in a number of achievements. In particular, the Caisse:
•    Completed new investments during the year totaling $1.6 billion in the Infrastructure portfolio, including two major projects in the oil and gas sector, namely €360 million in Fluxys, in Belgium, and US$850 million in Colonial Pipeline, the largest pipeline network in the United States, serving 260 terminals in 13 eastern and southern states;
•    Increased the number of commitments to emerging markets following the granting of management mandates in equity markets in Brazil, China and India and adopted a plan to invest upwards of $700 million in Brazilian real estate. These investments are made in collaboration with local partners and are in step with the Caisse's long-term strategy;
•    Consolidated and reorganized its real estate subsidiaries, and implemented a new strategy focused on operational expertise and on holdings located in countries where the Caisse has a strategic advantage;
•    Improved its ability to research and analyze economic and financial trends. The recruitment of international-calibre experts has enabled the Caisse to better understand the macroeconomic and financial climate,  the global economic outlook and its potential consequences on the Caisse's holdings;
•    Maintained a high level of liquidity, exceeding $45 billion at the end of 2011, allowing the Caisse to meet all its potential obligations, even in the event of a significant market correction. The Caisse uses different extreme scenarios to measure the adequacy of the liquidity it holds. These risk management tools have been developed over the last three years.
MORE DETAILED RESULTS
"The past year was a real roller coaster ride, and market conditions considerably deteriorated in the second half of the year," said Roland Lescure, the Caisse's Executive Vice-President and Chief Investment Officer. "Through our efforts and the tools we developed over the last three years, we were able to act quickly by reducing our exposure to equity markets in the third quarter amidst declining markets, and by subsequently rebuilding our position as systemic risks decreased," he added.
The Caisse's return was 4.0%, slightly below its benchmark portfolio of 4.2%. Thirteen of the 17 specialized portfolios posted positive results. As such, the four Fixed Income portfolios generated $5.7 billion (10.4% return) while Inflation-Sensitive Investments, which include Real Return Bonds (18.4% return), Infrastructure (23.3% return) and Real Estate (11.0% return), generated $3.1 billion. The Private Equity portfolio (7.1% return) generated $1.1 billion. This return is considerably higher than that posted by Equity Market portfolios (-7.2% return) and limited reductions in value in the Equity category to $3.3 billion.
                                     
Asset Class           Net Assets at
Dec. 31, 2011     Weight     Net Investment
Results     Return     Index
            $ billions     %     $ billions     %     %
Fixed Income           58.8     37     5.7     10.4     9.5
Inflation-Sensitive Investments           25.2     16     3.1     13.9     15.3
Equity           72.8     46     (3.3)     (4.2)     (3.4)
Total¹           159.0     100     5.7     4.0     4.2
¹ The total includes hedge fund, ABTN, asset allocation, overlay strategy and cash activities.
Fixed Income
The substantial decline in interest rates allowed the four portfolios in this sector to achieve strong gains with a return of 10.4%, outperforming its benchmark index by 0.9%.
In terms of net investment results, the Bonds portfolio ($4.0 billion) and Real Estate Debt ($1.0 billion) greatly contributed to the growth of depositors' assets. The initiative to refocus our Real Estate Debt activities, announced in the summer of 2009, was completed earlier than expected while generating returns of 17.1% in 2010 and 15.0% in 2011.
Inflation-Sensitive Investments
The three portfolios in this sector posted an excellent return of 13.9% in 2011.
The Real Return Bonds portfolio benefited from the appeal of Canadian bonds and from the lower expectations of real return to generate an 18.4% return.
The Infrastructure portfolio's 23.3% return stems from the robust operational performance of portfolio companies, and from the decline in long-term interest rates. Specifically, the return is in large part due to the performance of energy and airport service assets. This return is substantially above its benchmark index of 12.7%.
The Real Estate portfolio generated $1.8 billion in net investment results (11.0% return) due to a very strong performance in the shopping centre and office building sectors, especially in Canada and the United States. After two years of strong returns, managers have taken advantage of the strength of the Canadian market to sell certain assets and have accumulated cash to be able to reposition the portfolio in 2012.
The Real Estate portfolio return is below its respective benchmark index: 11.0% compared to 15.6%. The high level of cash in the Real Estate portfolio (close to $4 billion at the end of 2011) accounts for approximately half of this difference. The other half is due to the weak return of hotels, funds and other equity held by the portfolio—all non-strategic assets—compared to shopping centre, office building and multi-residential sectors that the Caisse expects to promote in the future.
Equity
After performing strongly for two years, Global Equity markets were unable to sustain the momentum without new monetary and fiscal stimulations by governments. Beginning in the summer, the European sovereign debt crisis, combined with fears of a slowdown in emerging markets and the precarious budgetary situation in the United States eroded investor confidence. Indexes plummeted on the majority of the major stock markets, particularly in the third quarter.
Throughout the year, Equity portfolios posted a negative absolute return of 4.2%, 0.8% below the benchmark index.
The Canadian Equity portfolio generated a -10.6% return, which is well below that of U.S. Equity (4.6% return) and confirms the strong correlation between Canadian Equity markets and Emerging Markets Equity portfolios (-16.4% return). It also falls short of its benchmark index which stood at -8.2%. Certain long-term portfolio positions, linked to the urbanization of emerging markets and the high demand for raw materials, underperformed in 2011. However, these positions have been successful over the long term and should persist accordingly into the future. Furthermore, the portfolio's insufficient exposure to high-dividend companies, which held up very well in 2011, accounts for much for the decline in value.
Now more than ever, the globalized world in which companies operate requires investors to deeply understand their strengths and overcome their weaknesses. The Caisse has initiated an in-depth review of the positioning of the Canadian Equity portfolio to ensure that it is well aligned with the new market conditions.
The Private Equity portfolio generated a 7.1% return. This performance is significantly above public market benchmark indexes and is due primarily to buyout activities. This portfolio continues to perform very well over time with annual returns of 10.8% in 2009 and 26.7% in 2010.
Value Added
Each year, the Caisse compares its performance with that of its benchmark portfolio. Since the reorganization of the Caisse's activities in the summer of 2009, the value added represents slightly more than $6.4 billion.
VALUE ADDED SINCE THE PORTFOLIO RESTRUCTURING IN JULY 2009
                         
Asset Class           Annualized
Return
%     Index

%     Added Value

$ billions
                 
     Fixed Income           9.3     7.6     2.2
     Inflation-Sensitive Investments           15.8     10.6     2.3
     Equity           10.6     9.2     1.8
     Total¹           11.2     9.1     6.4
¹ The total includes hedge fund, ABTN, asset allocation, overlay strategy, commodity and cash activities.
FINANCIAL FOUNDATIONS
During 2011, the Caisse's financial position remained solid with overall portfolio liquidity totaling over $45 billion and leverage (liabilities over total assets) remaining stable at 17%.
Credit rating agencies reaffirmed the Caisse's investment grade credit rating with a stable outlook, namely AAA (DBRS), AAA (S&P) and Aaa (Moody's).
OPERATING EXPENSES
In 2011, the Caisse continued to improve its efficiency, paying close attention to its operating expenses. As such, total operating expenses, including external management fees, stood at $278 million in 2011. The ratio of operating expenses to total assets therefore decreased from 19.4 basis points (bp) in 2010 to 18.0 bp in 2011, a level that places the Caisse among best-in-class fund managers.
CONCLUSION
"Once again, in 2011, the Caisse posted solid results. We are now able to focus on the future; a future certainly ripe with challenges, but also business opportunities. Although we approach the global economy's high level of risk prudently, we are very well positioned to seize very attractive investment opportunities created by this climate of uncertainty and by the growth of emerging markets. For the first time in a long time at the Caisse, we have the financial flexibility to take advantage of such opportunities, both here in Québec and elsewhere in the world. This is essentially what we can expect in the years to come," concluded Mr. Sabia.
ABOUT THE CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
The Caisse de dépôt et placement du Québec is a financial institution that manages the funds primarily for public and private pension and insurance plans. As at December 31, 2011, it held $159 billion in net assets. As one of Canada's leading institutional fund managers, the Caisse invests in major financial markets, private equity and real estate. For more information: www.lacaisse.com.
A chart is available on the Caisse's website

OVERALL PORTFOLIO MANAGEMENT
SUMMARY FOR THE YEAR
In a year marked by the European economic crisis and global uncertainty, there was a sharp rise in market volatility, essentially in the latter half of the year. In this context, overall portfolio management began to include protecting assets against a major decrease in equity markets. Due to efforts made and the tools developed in the past three years, hedging positions were managed in a flexible manner to take changing risk into account. As a result, the volatility for Caisse portfolio returns was significantly reduced.
MARKET CONDITIONS
The year started off with the Arab spring and the Tsunami in Japan. However, although these were major events, they ultimately had only a marginal impact on equity markets. Buoyed by a good outlook for growth and continuing expansionist monetary policies, in addition to major increases in profits recorded by publicly listed companies, western equity markets saw growth of approximately 1% to 3% in the first half of the year. Most importantly, this growth was achieved in an environment marked by little volatility, showing that investors were starting to regain their confidence in the markets.
There was a completely different story in the second half of the year. The downgrade of the U.S. credit rating and, especially, a deepening crisis in Europe had an impact on equity markets around the world. In the third quarter, markets tumbled by between -7% (U.S.) and -16% (Europe and emerging countries). Canadian markets declined by 12%. In addition to these equity market declines, there was a substantial increase in volatility which also remained in the fourth quarter. This illustrates the extent of the systemic risk at the height of the European economic crisis.
A chart is available on the Caisse's website
PORTFOLIO MANAGEMENT
During the first six months, and considering the improvement in the market environment, the asset allocation for the overall portfolio remained close to the benchmark. Equity market exposure therefore remained around 37%.
During the summer, the deteriorating economic outlook in the U.S., the downgrade of the U.S. credit rating, and Europe's inability to find a credible solution to the crisis in Greece led the Caisse to put in place defensive measures to protect the overall portfolio. In September, there was the risk that the crisis in Greece would spread to the rest of Europe, affecting the banking sector as well as peripheral countries. Due to the threat of a systemic crisis, the Caisse further reduced its equity market exposure, which stood at 30% in September.
The European Summit held in October made it possible to officially recognize the need to recapitalize European banks and to recognize major losses on Greek debt. This systemic risk then gradually diminished with changes of government in Greece and Italy, followed by the arrival on the scene of the European Central Bank in December. In this context, hedging positions were significantly reduced without being completely cancelled.
In addition to these equity market hedging positions, the Caisse ensured prudent cash management throughout the year. Cash varied between $5 billion and $9 billion during the second half of the year.
The following chart presents changes in Caisse equity market exposure:
A chart is available on the Caisse's website
FIXED INCOME
DESCRIPTION
The Fixed Income category consists of four portfolios: Short Term Investments, Bonds, Long Term Bonds and Real Estate Debt. It reduces the level of overall portfolio risk and matches the assets and liabilities of depositors.
The Bond and Real Estate Debt portfolios, with net assets totaling $48.3 billion, are actively managed, while the Short Term Investments and Long Term Bond portfolios, with net assets totaling $10.5 billion, are index-managed.
MARKET CONDITIONS
In 2011, the Canadian bond market had another year of good returns on government and corporate securities. This was largely due to the sharp decrease in the Government of Canada bond yield curve in 2011, primarily during the second half of the year (see graph). The decrease was driven by the precarious political and economic situation in the rest of the world, combined with Canada's reputedly more favourable fiscal position, as reflected in the Government of Canada's continued AAA credit rating. The Bank of Canada had to revise its economic scenario downwards and postpone monetary tightening.
A chart is available on the Caisse's website
The global bond markets also had a good year despite modest economic growth and the end of a wave of monetary easing in the United States. The solvency of mainly peripheral eurozone countries (Greece, Spain, Ireland, Italy and Portugal) was a focus of concern from August onwards. The market reacted adversely to a risk of contagion following a possible Greek default, and more specifically, its repercussions on the European banking system. Although stabilization measures (debt buybacks on the secondary markets and bank recapitalizations) were implemented, the expected economic slowdown depressed long-term rates on the major markets. Yields on 10-year government bonds in Canada and the U.S. ended the year at historical lows of less than 2%.
A chart is available on the Caisse's website
Source: Bank of Canada
Since 1982: Yield on Government of Canada 10-year benchmark bonds
Before 1982: Average yield on Government of Canada marketable bonds with maturities of over 10 years
The Canadian commercial real estate debt market also responded well to this environment with very positive performance in 2011. With mortgage credit spreads remaining fairly stable, the significant decrease in Canadian interest rates translated into higher returns over the year.
HIGHLIGHTS
Specialized Portfolio Performance
For the year ended December 31, 2011
                               
      $ billions     Weight1

%     Net
Investment
Results
$ millions     Return

%     Index

%
Short Term Investments     6.8     4.3     47     1.1     1.0
Bonds     41.6     26.2     3,981     10.1     9.8
Long Term Bonds     3.8     2.4     628     18.6     18.6
Real Estate Debt     6.7     4.2     1,014     15.0     9.5
Total     58.8     37.0     5,670     10.4     9.5
1 Compared to the Caisse's net assets
The overall return on the Fixed Income category was 10.4 %, 0.9% above the benchmark index. The portfolios in this category responded positively to a generalized decline in interest rates following on previous rate decreases in 2009 and 2010.
SHORT TERM INVESTMENTS
•    The portfolio returned 1.1%, outperforming its benchmark index by 0.1%. This performance reflects an environment of very low short-term rates.
BONDS
•    The largest share of assets held at the Caisse is invested in this portfolio: 26.2% or $41.6 billion as at December 31, 2011.
•    The portfolio returned 10.1%, generating $4.0 billion in net investment results. The return was 0.3% above its benchmark index.
•    The decline in medium- and long-term rates over the year drove up portfolio returns. Two thirds of the total return are value increases resulting from this decline.
LONG TERM BONDS
•    The return on the portfolio was identical to the benchmark index at 18.6%.
•    Almost 80% of the return was generated by value increases from lower long-term interest rates on government securities in the portfolio, which fell from 4% to 3%, a 1% decrease. This had an especially positive impact on the performance of this long-horizon portfolio.
REAL ESTATE DEBT
•    This portfolio returned 15.0%, or $1.0 billion in net investment results, outperforming its benchmark index by 5.4%.
•    Lower mortgage rates in Canada largely explain this strong performance in 2011.
•    The last foreign assets were sold as part of the portfolio refocusing strategy. This took place in favourable conditions, which also helped deliver higher returns on these assets.
INFLATION-SENSITIVE INVESTMENTS
DESCRIPTION
The Inflation-Sensitive Investments category consists of three portfolios: Real Return Bonds, Infrastructure and Real Estate. These portfolios provide exposure to markets, including inflation-indexed, income-generating investments. This can partly hedge against the inflation risk associated with the liabilities of many Caisse depositors.
The Infrastructure and Real Estate portfolios, which have $24.0 billion in net assets, are actively managed. The Real Return Bonds portfolio, which has $1.3 billion in net assets, is index managed.
MARKET CONDITIONS
In an environment characterized by low interest rates and particularly volatile equity markets, less liquid assets, such as infrastructures and real estate, have become increasingly popular on account of the high, stable current income they provide and a generally low risk profile. Despite credit market volatility and the economic slowdown, projects and assets with excellent fundamentals maintained their ability to obtain financing at low rates, which has fared well for them and enabled them to post high returns.
In the infrastructure sector, the rebound in activity in 2010 continued into 2011, with a sharp rise in investments in this asset class. In the third quarter, 137 infrastructure funds, targeting an amount of $96 billion, were included on a global scale.
This phenomenon was also seen in real estate. On the one hand, in Canada, investment in commercial real estate assets maintained its solid performance as observed in 2010.  On the other hand, for certain market sectors in the United States and Europe, commercial real estate investment fully offset the losses suffered during the 2008 financial crisis. In Europe, real estate asset sales by banks and governments resulted in an increased offer of assets on the market and, consequently, a certain price stabilization towards the end of the year.
A chart is available on the Caisse's website
HIGHLIGHTS
Returns on Specialized Portfolios
For the year ended December 31, 2011
                               
      $ billions     Weight1

%     Net Investment
Results
$ millions     Return

%     Index

%
Real Return Bonds     1.3     0.8     203     18.4     18.3
Infrastructure     5.8     3.6     1,043     23.3     12.7
Real Estate     18.2     11.5     1,835     11.0     15.6
Total     25.2     15.9     3,081     13.9     15.3
1 Compared to the Caisse's net assets
The overall return of the Inflation-Sensitive Investments category was 13.9%, 1.4% below the benchmark index, generating $3.1 billion in net investment results.
REAL RETURN BONDS
•    The Real Return Bonds portfolio obtained an 18.4% return.
•    Of this performance, 2.9% is the result of inflation over the period.
•    The majority of the return is due to the decline in real interest rates over the year. They decreased from 1.1% to 0.26%, a 0.84% decline. The effect on the return of such decreases in rates is particularly positive for this portfolio given its long term.
•    This year's excellent performance is in addition to the particularly high return of the last two years.  In 2009 and 2010, the return was 17.1% and 11.1%, respectively.
INFRASTRUCTURE
•    This specialized portfolio generated a return of 23.3%, $1.0 billion in net investment results. The return is 10.6% above its benchmark index.
•    This return, which is higher than the expected long-term return, stems from the sound operational performance of portfolio companies and from the decline in long-term interest rates. In particular, the return substantially owes to the performance of energy and airport service assets, including Trencap and BAA (British Airports Authority).
•    This year's excellent performance builds on the particularly high return from the last two years. In 2009 and 2010, the return on this type of asset was 33.6% and 25.4%, respectively.
REAL ESTATE 
•    The return on this portfolio stood at 11.0% in 2011, $1.8 billion in net investment results. The return was 4.7% below its benchmark index.
•    This return is primarily attributable to increases in value of retail shopping centres and office buildings in Canada and the United States.
•    The underperformance of the portfolio against its index is mainly due to the dilutive effect of cash and to the low return of funds and equity held by the portfolio relative to that of shopping centre, office, and industrial and residential building sectors that make up the benchmark index.
•    This year's high return builds on the high return of 13.4% posted in 2010. In 2009, the portfolio had plummeted 12.7% in the aftermath of the 2008 financial crisis.
EQUITY
DESCRIPTION
The Equity category consists of seven portfolios: Canadian Equity, Global Equity, Québec International, U.S. Equity, EAFE (Europe, Australasia, Far East) Equity, Emerging Markets Equity and Private Equity.
The Canadian Equity, Global Equity, Québec International and Private Equity portfolios, which have $49.7 billion in net assets, are actively managed. The U.S. Equity, EAFE Equity and Emerging Markets Equity portfolios, which have $23.1 billion in net assets, are index managed.
MARKET CONDITIONS
After a rather promising start to the year, most equity market indexes recorded heavy losses in the third quarter. These losses were especially related to the uncertainty caused by the European sovereign debt problems, the political debate in the U.S. regarding the raising of the debt ceiling, followed by the downgrade of sovereign debt from AAA to AA+, and the threat of an economic slowdown in emerging countries.
Returns Based On Equity Market Indexes in CA $
A chart is available on the Caisse's website
In total, and in spite of average earnings increases recorded by publicly listed companies, most of the major equity market indexes declined in 2011. The Canadian market (S&P TSX) is down 8.7%, the MSCI EAFE declined by 10.0% while the MSCI EM (emerging markets) is down 16.4%. Among the EAFE markets, European markets were particularly hard hit, with declines of close to 15%. The S&P 500 is the only major equity market index to end the year in positive territory (4.6%).
European markets were especially hard hit by the euro crisis, which created some very serious concerns regarding the health of eurozone banks. Emerging and Canadian markets saw declines as a result of uncertainty regarding global economic growth. The U.S. market resisted these pressures due to its more defensive sector mix and year-end U.S. economic news that reassured investors.
HIGHLIGHTS
Specialized Portfolio Returns
Year ended December 31, 2011
                               
      $ billions     Weight1

%     Net Investment
Results
$ millions     Return

%     Index

%
Equity                        
      Canadian Equity     18.6     11.7     (2,133)     (10.6)     (8.2)
      Global Equity     10.9     6.8     (683)     (5.7)     (5.1)
      Québec International     4.5     2.9     87     1.6     1.9
      U.S. Equity     8.1     5.1     319     4.6     4.6
      EAFE Equity     9.1     5.7     (962)     (9.6)     (10.0)
      Emerging Markets Equity     5.9     3.7     (1,040)     (16.4)     (16.4)
      Subtotal - Equity Markets     57.1     35.9     (4,412)     (7.2)     (6.3)
      Private Equity     15.7     9.9     1,113     7.1     7.4
Total     72.8     45.8     (3,299)     (4.2)     (3.4)
1 Compared to the Caisse's net assets
The overall return for the Equity category is therefore -4.2%, which is 0.8% less than the benchmark index.
CANADIAN EQUITY
•    The Canadian Equity portfolio generated a return of -10.6%, for net investment results of -$2.1 billion. This return is 2.4% below the benchmark index.
•    This return is well below the 4.6% return for U.S. equity and confirms that Canadian equity markets are closely tied to emerging markets (return of -16.4%). The sector mix for the Canadian equity market represents a heavy exposure to the financial (29%) and materials (21%) sectors. Fear of a financial crisis and concerns regarding global economic growth, in particular in emerging economies, had an especially hard impact on the returns of companies in these sectors, which also explains the negative return posted by the Canadian market.
•    The portfolio return is nonetheless below that of the index, mainly as a result of:
o    Certain long-term portfolio positions relating to urbanization in emerging countries and strong demand for basic materials underperformed in 2011. However, these positions paid off well in the long term and should continue to do so in the future.
o    The portfolio's under-exposure to companies paying high dividends, which resisted pressures very well in 2011 due to the major drop in interest rates.
•    In early 2011, the Morningstar National Bank Québec Index, reserved exclusively for Québec companies, was incorporated into the Canadian Equity portfolio benchmark index in order to better represent the reality of the Québec economy in this portfolio. The value of investments in Québec grew by $589 million during the year and has increased by $1.2 billion since the end of 2009. Québec securities account for 21% of the Canadian portfolio at year end, up 4.2% in the past 12 months.
GLOBAL EQUITY
•    The Global Equity portfolio generated a return of -5.7%, which is 0.6% below the benchmark index.
•    The variance with this index is mainly attributable to positions in the healthcare, industrial products and natural resources sectors.
•    In 2011, the management team completed the implementation of its new external management strategy, targeting specialized managers in countries such as China, India or Brazil, or exposure to specific economic sectors.
QUÉBEC INTERNATIONAL
•    The Québec International portfolio generated a return of 1.6 %, which is close to the benchmark index.
•    This return is better than the return for the Global Equity portfolio, mainly due to the high rate of return for the portfolio's bond component. The absence of emerging countries in the portfolio was also a favourable factor in 2011.
U.S. EQUITY, EAFE EQUITY AND EMERGING MARKETS EQUITY
•    These portfolios, which are index managed, generated returns of between -16.4% and 4.6% during the year, which is in line with their benchmark index.
•    Equity markets in emerging countries, Japan and the euro zone had an especially difficult year, with returns of between -12.2% and -16.4%.
PRIVATE EQUITY
•    The Private Equity portfolio posted a return of 7.1%, which exceeds the return for equity market indexes but is 0.3% less than the return for the portfolio benchmark index.
•    A total of 80% of the portfolio's performance is attributable to leveraged buyout financing activities and, especially, investments in funds.
•    There were two phases in the Private Equity market in 2011. The first six months were marked by a high level of activity characterized by many refinancings, mergers and acquisitions and initial public offerings.
•    There was a complete turnaround of the situation in the latter half of the year.
o    The financing market had completely dried up.
o    There was a considerable slowdown in activity for mergers and acquisitions and initial public offerings.
o    However, the market conditions favoured development capital transactions since companies sought solid partners to realize and ensure their future growth.
•    Holding companies were very active on financial markets, carrying out refinancings while making the most of low rates and reviewing their loan maturities. The management team also took advantage of favourable market conditions to re-position the funds portfolio due to transactions on the secondary market, generating net inflows in excess of $1 billion. These two factors contributed to improving the portfolio quality and therefore reducing risk.
•    New portfolio investments totaled $2.5 billion: $1.3 billion in direct investments, including $649 million in Québec and $1.2 billion in funds.

VALUATION OF INVESTMENTS

The Caisse performs a comprehensive fair value assessment of its illiquid real estate, infrastructure and private equity investments. In accordance with current Canadian accounting rules, it must value them at the price it would obtain if they were sold on the market under normal competitive conditions.
Independent external firms — external appraisers and valuation committees made up of experts in the field — evaluate all major investments. In addition, as part of their audit of the Caisse's financial statements, the co-auditors of the Caisse, the Auditor General of Québec and Ernst & Young, review the fair value of investments.
REAL ESTATE
•    External chartered appraisers certify the fair value of real estate assets.
•    99% of real estate is reviewed in this way.
INFRASTRUCTURE AND PRIVATE EQUITY
•    Investments with a fair value exceeding a predefined materiality threshold are subject to independent valuation committee or external appraiser review.
•    92% of the fair value of portfolio investments is reviewed in this way.
 



 

Here’s the takeaway:
Luxe is Getting a New Life
According to American Express, 18-29 year olds were hot to purchase high-end goods last year. From “It” bags to vertiginous heels and fine jewelry, Gen Y consumers ramped up their spending on premium brands by 33 percent in 2011. To satisfy this ravenous new group of big spenders, retailers must stay on top of e-commerce and mobile apps, in addition to keeping the traditional brick and mortar experience as customer-service oriented as always.  Read more

Charles Dillingham, Vice President, Portfolio Manager at Morguard Financial responded, "We are honoured to have been recognized by the Thomson Reuters Lipper Awards for the Best Fund over 3 Years (2012) and the Best Fund over 1 Year (2011) in the Canadian Real Estate Equity category. Key drivers of our success include our experienced team, opportunistic yet disciplined approach and our close association with Morguard Corp., a leading Canadian real estate investment advisory firm with $10 billion in real estate assets owned and under management across Canada and the U.S."
"We are very proud of the long standing relationship that Morguard has with CIBC Asset Management.  We wish to thank CIBC for their 15 years of support and look forward to many more years of success as a member of the CIBC mutual fund family."
The CIBC Canadian Real Estate Fund's 3-year annualized return net of fees is 24.87% as at January 31, 2012. Globe Investor ranks this fund's performance first quartile in calendar 2009, 2010, and 2011.
About Morguard Financial Corp. - www.morguard.com

Morguard Financial is a wholly-owned subsidiary of Morguard Corporation ("Morguard") one of Canada's leading real estate powerhouses. With over $10 billion in real estate assets owned and under management, Morguard's dominant position in real estate markets across Canada combined with its depth of experience in all commercial asset classes provides Morguard Financial's portfolio management group with local insight and market intelligence.  Investment decisions are based on top-down bottom-up analysis and a thorough understanding of the businesses in which we invest. In addition to the CIBC Canadian Real Estate Fund, Morguard Financial also manages the Morguard Sunstone Real Estate Income Fund for retail investors, the Morguard Real Estate Equity Fund for institutional and accredited investors, and separate accounts on behalf of institutional investors.
 

The 2012 TSX Venture 50 is a ranking of strong performers on the TSX Venture Exchange. It is comprised of ten companies from each of the following five sectors: Mining, Oil & Gas, Diversified Industries, Clean Technology and Technology & Life Sciences. BTB was ranked second in the Diversified Industries category.
The companies were ranked based on the following criteria, with equal weighting assigned to each: market capitalization growth, share price appreciation, trading volume and analyst coverage.
 

These companies, spanning every region across the country and an array of industries, have demonstrated business excellence through a rigorous and independent process that evaluates the calibre of their management abilities and practices.
The prestigious national award is sponsored by Deloitte, CIBC, National Post and Queen's School of Business. The announcement was made today by the national sponsors and in a special report in the National Post.
"On behalf of the Board of Directors of Avison Young, our employees and our clients, we are truly honoured to receive this prestigious designation. We are proud to be recognized as one of Canada's 50 Best Managed Companies for 2011 and hope to continue our success for many years to come," comments Avison Young Chair and CEO Mark Rose.

He continues: "We, at Avison Young, have created a model that speaks to clients and top talent and we have differentiated ourselves from all other commercial real estate service providers. Our culture is one of partnership. Our equity is in the hands of our Principals, our Principals understand clients' needs and deliver solutions, and our ownership structure is aligned and accountable with client objectives. We are aligned in every way, starting with a clear strategic vision and the conviction to compete as hard as we can, to executing at the highest levels and communicating our success and growth."

Avison Young is the largest Canadian-owned, principal-managed commercial real estate brokerage firm in North America. Since launching its five-year growth plan in late 2008, the company has grown from 11 to 26 offices and from 300 to more than 800 real estate professionals across Canada and the U.S. Executing on and exceeding its goals ahead of schedule, the company now has its eye on future growth in Europe and Asia.
"To be honoured as one of Canada's 50 Best Managed Companies is a remarkable achievement," says Jon Hountalas, Executive Vice-President, Business Banking, CIBC. "We applaud the success of this year's winners and we're proud to recognize their contributions to Canadian business."
Established in 1993, Canada's 50 Best Managed Companies national awards program recognizes Canadian companies that have implemented world-class business practices and created value in innovative ways. Applications are reviewed by an independent judging panel that evaluates how companies address various business challenges, including new technologies, globalization, brand management, leadership, leveraging and developing core competencies, designing information systems, and hiring the right talent to facilitate growth.
"We are powered by our Principal ownership, whereby the employees are the owners. Solutions are created and executed by the very people who have both reputational and financial risk. This allows for a much broader and consistent team effort, and is unmatched by any competitor in the industry," explains Avison Young Principal Bob Levine, based in Vancouver, BC. "By investing in meeting the needs of our valuable clients, we hope we have made a positive impact in the national marketplace."

"We believe that there are three vital building blocks to sustainable growth: strategy, capability and commitment. Avison Young has demonstrated it is a model of success in all three areas and is duly recognized as one of Canada's Best Managed Companies," notes John Hughes, Partner, Private Company Services group with Deloitte.

Hughes adds: "Today's marketplace is not just about the investment in the product - it is also about the investment in the people. Avison Young invests in its team to build up a strong and stable company. Canada's 50 Best Managed Companies carries this attribute, and we are pleased to say Avison Young is one of this year's recipients."

Winners of the Canada's 50 Best Managed Companies award in 2011, along with the Gold Standard winners, Requalified and Platinum Club members, will be honoured at the annual Best Managed gala in Toronto on March 27, 2012. On the same date, the Best Managed symposium will address leading-edge business issues that are key to the success of today's business leaders.

"Our client list has grown significantly over the past three years as occupiers and investors become aware of our industry-leading client-service model. Avison Young offers the only holistic approach to solving clients' commercial real estate needs," adds Avison Young Principal Robin White, based in Toronto, ON. "We are deeply appreciative of this prestigious award as it is a distinction that celebrates the entire Avison Young family. We applaud the accomplishments of all 50 companies and their commitment to excellence."
 

Senior management will be hosting a conference call to discuss the results tomorrow, Thursday, February 23, 2012 at 9:00 a.m. (ET). To access the call, please dial: (416) 340-2216 or toll free at 1-866-226-1792. A taped replay of the call will be available for 30 days by dialling (905) 694-9451 OR 1-800-408-3053 and using passcode 6370278. To access the conference call via webcast, please go to Dundee REIT's website at ww.dundeereit.com and click on the link for News & Events, then click on Calendar of Events. The webcast will be archived for 30 days.
 

The additional 6,108,608 Canmarc Units deposited under the Offer will be paid for on February 10, 2012. Approximately 59% of such additional Canmarc Units tendered were tendered into the Unit Alternative of the Offer and approximately 41% of such additional Canmarc Units tendered were tendered into the cash alternative of the Offer. 2,099,287 trust units of Cominar will be issued in payment of such additional Canmarc Units tendered under the Unit Alternative.

Since the Cominar Acquisition Group has been successful in acquiring more than 90% of the Canmarc Units not owned by the Cominar Acquisition Group or Cominar under its Offer, it intends to acquire all remaining Canmarc Units by compulsory acquisition under the declaration of trust of Canmarc. The Cominar Acquisition Group intends to send a notice of compulsory acquisition to each holder of Canmarc Units who has not accepted the Offer as soon as practicable after it has paid for the Canmarc Units taken-up .

The unit alternative (the "Unit Alternative") at 0.7607 Cominar Units per Canmarc Unit, subject to proration on the terms described in the Offer, will still be available as an option for Canmarc Unitholders who wish to elect not to receive cash consideration under the compulsory acquisition and prefer the opportunity to participate in the future upside of Cominar and in the benefits that Cominar will derive from its acquisition of Canmarc. Under the terms of the Offer, Cominar Units were specifically reserved to provide the Canmarc Unitholders with the same opportunity to participate in Cominar that many other Canmarc Unitholders have already benefited from. Further, based on the exchange ratio offered under the Unit Alternative and before any potential proration of the Cominar Unit consideration, the monthly cash distributions to Canmarc Unitholders electing the Unit Alternative would, based on current distributions to Cominar unitholders, represent an increase of approximately 15% over recent distributions on Canmarc Units.
As previously announced, Cominar will cause Canmarc to cease further distributions on Canmarc Units.
 

The REIT has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following the closing of the offering, to purchase up to an additional 1,612,950 Units at the same offering price.

The estimated net proceeds to the Trust from the Offering, after deducting the Underwriters' fee of $900,026 but before deducting the expenses of the Offering, were approximately $19.1 million. The net proceeds from the Offering are expected to be used by the REIT to pay out a loan facility entered into in connection with certain property purchases and to pay down a portion of the REIT's acquisition facility advanced in respect of a property purchase completed in 2011.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.
 

The 2011 Green Builder of the Year award recognizes a home builder who demonstrates building innovation and excellence in one or more of EnerQuality's managed certification programs, including ENERGY STAR and LEED Canada for New Homes, and whose "overall commitment and leadership has resulted in a significant impact on moving this industry forward." In 2011, Minto had 751 homes enrolled in a combination of both the ENERGY STAR® and LEED® Canada for New Homes programs. Since 2010, Minto Communities has committed to building all new homes to a standard of ENERGY STAR certification, and has built and closed 1200 units under this guarantee. Minto Communities has often exceeded these certification requirements by implementing more efficient and innovative green building technologies in their new homes.
According to EnerQuality, the 2011 Leader of the Year is given to an industry-nominated recipient who exhibits "commitment, advocacy and leadership in driving the growth of energy efficient/green new housing in Ontario." In receiving this high honour, Minto was recognized for exceeding voluntary program technical certification requirements in new home construction, going "above and beyond" in marketing and sales programs to drive awareness, as well as effectively integrating green into its internal culture through a dedicated division of sustainability professionals, a body of green employee volunteers and company-wide initiatives.
"As a leader in the residential construction industry, Minto has participated in developing the Next Generation of ENERGY STAR for New Homes, an initiative that entails collaborating on the development of new ENERGY STAR requirements with other technical experts from across Canada," added Alison Minato, Minto's Vice President of Sustainability. Minto's Sustainability Department, comprised of engineers and subject matter experts, consistently work in collaboration with Minto Communities to research new building practices, test and pilot new technologies, benchmark building performances and commercialize piloted technologies within both their existing and new building portfolio.
 

This new transaction by Ivanhoé Cambridge, a real estate subsidiary of the Caisse de dépôt et placement du Québec, involves the purchase of 484 rental housing units across three buildings located in Cupertino, Sunnyvale and San Jose, home to some of the world's largest information technology companies, notably Apple, Facebook, Google, IBM and Intel.

"The residential market in Silicon Valley meets several of our investment criteria and forms an essential part of our strategic business plan," explained Daniel Fournier, Chairman of the Board and Chief Executive Officer of Ivanhoé Cambridge. "As in the case of the Rockhill Complex in Montreal and several buildings we acquired in central London, Silicon Valley has quality buildings with a significant critical mass in a growing market."
Last December Ivanhoé Cambridge announced the purchase of The Park Kiely, a 948-unit rental apartment complex located in San Jose. The three new properties, Verandas, Woodbridge and The Reserve, have been acquired for CAD $136 million and complement our current presence in the region. All buildings are within a 5-kilometre radius. Demmon Partners currently manages The Park Kiely and will assume management of the three new properties.

"These buildings are situated in an exceptional location and enable us to leverage synergies in terms of building management," added Sylvain Fortier, President, Residential, Ivanhoé Cambridge. "We are reinforcing our position in a region which will see remarkable growth over the next few years."

Silicon Valley is known as one of the wealthiest areas of the U.S. In 2011, average family income figures were above the national average and the region saw the highest job creation numbers in the country. Market studies indicate that the area's population growth should increase to 5% by 2016.

In addition to high-tech companies, the Valley features a number of prestigious universities and some of the top elementary schools in California. Furthermore, Apple's new Silicon Valley campus is slated for completion by 2015 and will be built less than a kilometre from the Verandas and Woodbridge.
 

Davos 2012 drew to its close over the weekend.  Saturday offered me a great opportunity to attend some of the panels that were covering more general topics.  One was around smart cities and I was frankly a bit disappointed at the level of discussion.  Read more...

Office Investments
The demand for Downtown Class “AA” Office investments continues to gain strength, on the heels of positive absorption in the key Toronto, Vancouver, and Calgary markets. According to Altus InSite’s Vacancy Barometer, vacancy will tighten during the next 3 months in most downtown locations, particularly in Calgary, which has seen a dramatic decrease in vacancy as the Oil and Gas sector increased output and hiring activity. In the East, caution is expressed within the Downtown Class “B” Office sector in Ottawa and Halifax, as vacancy is expected to increase over the next three months.

Retail Investments
The popularity of retail products is underscored by it being ranked in three out of the top 5 positions on the Product Type Barometer, which measures investors’ most preferred asset class based on a potential buyer/potential seller ratio. The Q4 2011 survey also addressed valuation parameters and outlook for Tier I and Tier II Regional malls and Enclosed Community Malls.  These represent very contrasting retail asset types as demonstrated by the survey responses. Tier I Regional Malls are the top pick on the Product Barometer with 8.0 buyers per seller. It is a “sought after” asset, but is rarely available. OCR’s reported for this prime asset class varied from as low as 5.4% in Vancouver up to 6.4% in Halifax.

Industrial Investments
The slide opposite documents respondents’ opinion of the typical year 1-5 Rental Rate for the benchmark Multi Tenant Industrial Building. The average rates reported are in the higher range in Western Canada, from $7.56 per sq ft in Vancouver to $8.71 per sq ft in Calgary. The Central and Eastern locations report $5.53 per sq ft in Montreal to $7.16 per sq ft in Ottawa. Over the last 12 months all locations except Halifax (-3.5%) and Montreal (0%) reported increases in industrial rents of between 2.9% and 9.81%. Not surprisingly, the largest increase of 9.81% was reported in Edmonton, followed by Calgary at 9.28%.

 

In terms of yield requirements, the OCRs for Single-Tenant Industrial have compressed by 20 to 50 bps over the last 12 months. The western cities report OCR’s of 6.2% to 6.6% and Toronto is in a similar range. Montreal, Ottawa, Quebec and Halifax report a higher range of OCR’s of 6.7% to 7.9% for Single Tenant Industrial.

Multiple Unit Residential - Apartments
This asset class remains one of the most stable property investment types and usually produces the lowest yield rates in our survey. This product continues to retain its top five position on the product preference barometer. The low OCRs can be attributed to the fact that this asset class remained a “sought after” group and vacancy has been declining nationwide. The unit prices of $168, 657 (Vancouver) to $91,000 (Quebec City) demonstrate a healthy 10% to 15% rebound from values indicated 12 months ago.

In terms of location, Ottawa seems to be the most preferred location followed by Halifax and Toronto as indicated in the accompanying chart.

 
More Caution from Investors
The Investment Trends Survey reports a positive year with a run up in values, but caution is setting in and demand has potentially peaked. This “sea change” from our last survey, just three months ago, is signaled by a fall in demand on the Investor Outlook barometer and a pause in the 24 month downward spiral of yield rates. On the debt side, the Bank of Canada appears to be holding the line on interest rates for the foreseeable future. However, the direct and measurable correlation between bond rates and mortgage rates is a significant factor causing leveraged investors to exercise more caution in making acquisition decisions. Is this change merely a pause while investors take a “breather” to weigh up the recent fiscal policy changes in the euro zone and US Congress or does it represent a market peak in prices? The results of the next quarterly survey will provide insight into this question.


Every quarter, senior Altus Group professionals reach out to over 300 investors, managers, owners, lenders, analysts and other market stakeholders to survey their opinion on value trends and perspectives. Conducted with the same benchmark properties for over 10 years, the survey provides valuable insights on valuation parameters for 32 asset classes in Canada’s 8 largest markets. For more detailed survey results, please contact support@altusinsite.com.

 

The “A New World of Cities” report finds that:
•       50 percent of real estate investment is concentrated in 30 cities around the world
•       London and Paris continue to rank in top five cities for real estate investment
•       Top 10 cities include five from Asia, up from two in 2004, with China increasing its weight through 2020
•       Three North American cities feature in top 10 currently—New York, Washington DC and Toronto—and six fastest growing cities are expected to be in the U.S.
•       By 2020, the top 30 cities will become the top 50 as digital communications enable corporations to locate outside traditional hubs

“We are already seeing a shift in where real estate investors are sending their capital,” said Peter Roberts, CEO, Americas, Jones Lang LaSalle.  “The top 30 cities for real estate investment will become the top 50 as investors diversify their portfolios and corporate occupiers expand their geographic footprints to include emerging cities.  Advances in digital communications contribute to this expansion because companies will no longer have to physically cluster in some of the world’s largest cities.”

“In the BRIC countries, Grade A office stock is projected to grow by 10 percent per year over the next decade,” said Roberts.  “Of these, China has the greatest opportunities with the world’s 10 fastest growing new cities in terms of GDP – Chongqing, Tianjin and Chengdu topping the list.”
Cities in China are being transformed by an unprecedented programme of development and modernization.  Jones Lang LaSalle has defined 50 secondary and tertiary cities in China that will account for 12 percent of global economic growth in the next decade. “Back in 2004, Tokyo and Hong Kong were the only Asian cities in the top 10 cities for real estate investment,” said Roberts.  “Last year, however, we saw Tokyo, Hong Kong, Singapore, Shanghai and Seoul make the list.”

The U.S. - a strong counter-balance
While much global attention has been paid to the growth of Asian cities, U.S. cities provide a strong counter-balance.  Nearly half of the world’s office stock is located in the U.S., and more than one third of all commercial real estate investment takes place in U.S. cities. Eleven of those cities are expected to feature among the world’s top 30 largest cities by GDP by 2020. Six of the top 30 fastest growing cities in terms of absolute GDP will be in the U.S., including New York, Los Angeles, Chicago, Washington DC, Dallas and Houston. 
“Over the next decade, 16 of the top 20 fastest growing mature cities will be in North America,” said Roberts.  “Austin, TX and Raleigh-Durham, NC will be at the top of the list driven by technology, high-value activities and commitment to innovation.”

The Euro zone
Despite European economic turmoil, London has remained the top real estate investment pick with more than $43 billion invested in 2010 and the first three quarters of 2011, a third higher than the world’s second most popular destination, Tokyo. 

“Aside from London, Europe’s other mega cities include Paris, Moscow and Istanbul.  They are truly global and offer diverse industries and sectors,” said Christian Ulbrich, CEO EMEA.  “Other cities such as Munich and Stockholm offer strong real estate conditions and commitment to innovation, which will serve them well in a low-growth environment.”

“While investors are still choosing to invest in strong, stable and transparent cities, new destinations offer a new world of potential,” said Ulbrich.  “As the world changes so rapidly, the real estate investment map will follow suit.  Corporations will continue to assess their business locations, search for more value and deepen their geographic reach. Investors will diversify their portfolios and begin to search for new cities for their investments in Asia Pacific and second or third tier cities in the West.”

Where is the money going?
Top 30 cities for direct commercial real estate investment, 2010 – 2011*
 

* 2011 – Q1-Q3

Investment volumes in US$ billions

Source: Jones Lang LaSalle

Earn Five (5) RECO Continuing Education Credits
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Any Questions?
Contact Maria Encarnacion by phone (416) 512-3807 or by email mencarnacion@mmart.com.

To assist with navigating this more moderate economic and financial outlook, Morguard's Research Group is releasing its 2012 Canadian Market Outlook and Market Fundamentals report. The document outlines the economic, demographic and capital market influences, major trends and forecasts for each real estate property class, both on a national and metropolitan level. In reading the report, readers will be furnished with information and commentary that will assist them in developing their own strategies and tactics in 2012 and beyond.

For a copy of the report please send an e-mail to the following address, research@morguard.com with your detailed contact information including company name.
 

"In accordance with our strategic plan, we are acquiring multi-residential buildings in target urban centres. Following our recent purchases in Montreal and in San José (United States), London is a natural top choice," said Daniel Fournier, Chairman of the Board and Chief Executive Officer of Ivanhoé Cambridge.

The transaction consists in the purchase of four multi-residential buildings, totaling 207 units, in the very heart of London, including some of the city's most prestigious neighbourhoods, known as "Prime Central London": South Kensington, Hyde Park, Bayswater and Marylebone.

By the same token, Ivanhoé Cambridge, through a real estate subsidiary, enters into a partnership with Residential Land, a London-based real estate firm, and Apollo Global Real Estate Management.
"This acquisition is strategically important, as it enables Ivanhoé Cambridge to penetrate an exceptional sector that is particularly difficult in terms of access," stated Sylvain Fortier, President of Ivanhoé Cambridge/Residential. "It's also an excellent opportunity to forge sustainable relationships in a most promising market with partners who have a proven track record."

The parties' agreement gives majority partner Ivanhoé Cambridge an opportunity to invest in the acquisition of other residential buildings exclusively with Residential Land and Apollo Global Real Estate Management, the global real estate investment group affiliated with Apollo Global Management. The Quebec-based company, through its subsidiary, will play a significant decision-making role in the partnership's major orientations.
"Central London's residential market presents some excellent business opportunities, and this partnership puts us in a position to seize them," added Bruce Ritchie, CEO and founder of Residential Land, a private corporation with over 1,200 units of rental housing. Apollo Global Real Estate Management, which already has a presence in the London market, will invest directly in the partnership, and will play a strategic role in its management. Roger Orf, head of the Apollo Global Real Estate Management group in Europe, concluded: "We believe our seasoned executives are well-positioned to capitalize on opportunities in this fragmented market."
 

What has not changed over the last 60 years however, is a belief in the values that Heward Stikeman and Fraser Elliott set for the firm in those early days. "What brings together the members of the great Stikeman Elliott family across Canada and even abroad is their spirit of adventure and entrepreneurship and their commitment to give the best of themselves" said Pierre Raymond, Chair of the firm. "The philosophy of the founders of the firm is still very relevant today and is an intricate part of the way we do business."

Stikeman Elliott ranked among the top employers in several Canadian surveys in the last few years. Recently, it was selected as one of Montréal's Top 30 Employers by The Gazette and was ranked among Canada's 50 Best Employers for the third consecutive year, according to a survey conducted by Aon Hewitt.  "Stikeman Elliott always tries to create a stimulating work environment where employees will want to excel," says André Roy, Managing Partner of the Montréal office. "This year we decided to concentrate our efforts on the well-being of our members, whether it be financial stability or physical and psychological wellness, through conferences and presentations as well as activities such as the Enbridge Ride to Conquer Cancer.  This event is a bicycle ride organized in each of the major Canadian cities and to which over 120 of our lawyers and employees across our Canadian offices will take part this year. The well-being of the members of our firm is one of our basic concerns and we believe that it has a great impact on our success as a business."

Also, through its GoingGreen program introduced several years ago, the firm was ranked among the "Green 30" - the 30 greenest businesses in Canada - and in 2009, through the support and enthusiasm of our firm members for this program and the implementation of strategies to reduce waste, the firm's Canadian offices were certified as being carbon neutral, making Stikeman Elliott the first national Canadian law firm to achieve this milestone.
 

Closing Consideration Paid by Partners REIT
Partners REIT paid $41,742,531 (which amount includes a credit to NorRock of $1,425,000 on account of expenses and a payment of $1,200,000 in respect of certain cash equivalents)  for the cash and cash equivalents held by NorRock. In addition, it has paid $9,422,980 (the "Assets at Closing Payment") for the non-cash assets of NorRock. Since October 17, 2011, NorRock has sold assets with a value of $3,177,020, which amount has been deducted from the Assets at Closing Payment and added to the Cash at Closing Payment. 

Partners REIT made the Cash at Closing Payment and Assets at Closing Payment by transferring (or directing the transfer) to NorRock the following units and cash (excluding the stub period dividend payments and payments to stock appreciation rights holders which were funded by NorRock) to NorRock:
                         (a)          for each NorRock preferred share, 13.72824 Partners REIT units, together with cash equal to any stub period dividend payment, or, if the holder has so elected, 12.71676 Partners REIT units and $1.75 in cash  together with cash equal to any stub period dividend payment;
                         (b)          for each NorRock Class A share, 3.29445 Partners REIT units, a number calculated by determining the amount of the Cash at Closing Payment and Assets at Closing Payment, less an amount equal to the number of issued and outstanding NorRock preferred shares multiplied by $23.75, and dividing the result by the number of outstanding NorRock Class A shares (the amount per share being the "NorRock Class A Share Consideration") and then dividing by $1.73; and
                         (c)          for each of the 150,000 NorRock stock appreciation rights outstanding, $0.59 paid in cash per stock appreciation right, a number calculated by subtracting $5.11 from the NorRock Class A Share Consideration.

The Partners REIT units payable to holders of NorRock Class A shares have a value of $6.33 based on the $1.92 closing price of the Partners REIT units on the TSX Venture Exchange on January 31, 2012. The Partners REIT units payable to holders of NorRock preferred shares who did not elect to receive some of the consideration in cash have a value of $26.36 based on the same closing price.
In connection with closing:
•    29,575,333 Units were issued (representing approximately 95% of the currently issued and outstanding Units) to holders of NorRock preferred shares and Class A shares;
•    $344,050 was paid to those holders of NorRock preferred shares that elected to receive partial consideration in cash;
•    $217,717 was paid on account of the stub period dividend payment for the NorRock preferred shares to holders of such shares;
•    $88,500 was paid to holders of NorRock stock appreciation rights; and
•    3,074,160 Rights (as defined below) will be issued to holders of NorRock Class A shares and holders of NorRock stock appreciation rights.
Rights - Additional Consideration Payable by Partners REIT

In addition to the Partners REIT units issued and cash paid at closing as described above, at Closing Partners REIT issued 3,074,160 non-transferable rights ("Rights") to NorRock. Under the plan of arrangement, NorRock is obligated to distribute these Rights to the holders of its Class A shares and stock appreciation rights. See "Timing of Distributions of Partners REIT Units to Holders of NorRock Securities" below.
The Rights will entitle the holder to receive Partners REIT units (or, in Partners REIT's discretion, a cash payment in lieu of all or a portion of such units) corresponding to that holder's pro rata share of the Deferred Payment described below. The number of Partners REIT units to be issued, if any, will be calculated based on the five day volume weighted average trading price of the Partners REIT units determined at the time of issue.
Holders of the Rights may receive additional payments after closing in accordance with the terms of the Rights, which will be paid on a pro rata basis based upon the number of issued and outstanding Rights.  The aggregate of such payments (the "Deferred Payment"), if any, will be equal to the (A) Liquidated Value plus the Retained Value (both as defined below) less (B) the Assets at Closing Payment less (C) 20% of the amount (if any) that the Liquidated Value exceeds the Assets at Closing Payment.
To the extent that the Deferred Payment is equal to or less than $0.01 per Right, a payment of $0.01 will be payable per Right.

After closing, Partners REIT may choose to sell the mortgages and other non-cash assets it has purchased from NorRock. If Partners REIT chooses to sell any of such assets before July 1, 2012, such assets will be valued at the net sale price (in the case of a sale to parties that are arm's-length to Partners REIT, or at a price equal to or above an independent valuation if such asset is sold to a party that is not arm's-length to Partners REIT) (the "Liquidated Value"). If Partners REIT continues to hold any such assets on July 1, 2012, it will have such assets valued as of July 1, 2012 by two independent and qualified valuators by August 1, 2012.  The average valuation will be considered to be the "Retained Value" for such assets.
In accordance with the terms of the Rights, the Deferred Payment will be made up to 90 days following the earlier of:
•    the liquidation of all non-cash assets acquired by Partners REIT from NorRock; and
•    August 1, 2012.

The Rights are not and will not be listed on any stock exchange. The Rights are not transferable by an initial holder except by operation of law or to the heirs, executors and successors of an initial holder.
Timing of Distributions of Partners REIT Units to Holders of NorRock Securities
Under the plan of arrangement, NorRock is obligated to distribute any cash, Rights and Partners REIT units received from Partners REIT to its security holders, as set out above.
The distribution of Partners units and cash to holders of NorRock preferred shares will be made by Computershare Investor Services Inc., the depositary for the arrangement, as soon as practicable after closing.
The distribution of Rights to holders of NorRock stock appreciation rights will be made by Computershare Investor Services Inc., the depositary for the arrangement, as soon as practicable after closing.
The distribution of Partners units and Rights to holders of NorRock Class A shares will be made to these shareholders of record as of the close of trading on February 6, 2012 and will be made by Computershare Investor Services Inc., the depositary for the arrangement, on or about February 14, 2012.
Dilution

A total of 29,575,333 Partners REIT units were issued at closing (representing approximately 95% of the currently issued and outstanding Partners REIT units).  The maximum number of Partners REIT units issuable under the Rights agreement is 3,000,000, representing approximately 10% of the currently issued and outstanding Partners REIT units.
Trading of NorRock Preferred Shares and Class A Shares on the TSX
As part of the plan of arrangement completed today, the NorRock preferred shares were cancelled, so certificates representing the NorRock preferred shares represent only the right to receive the Partners REIT units to which such holder is entitled and, if elected by the holder prior to January 31, 2012, cash.
The Toronto Stock Exchange has advised NorRock that it expects that the NorRock preferred shares will be delisted from the Toronto Stock Exchange on or about February 3, 2012. The TSX has also advised NorRock that it expects that the NorRock Class A shares will be halt traded as at the opening of the markets on or about February 6, 2012. Trading in the NorRock Class A shares will continue to be halted until such time as the NorRock Class A shares are delisted.
Upon closing of the Transaction, NorRock will have substantially sold all of its assets. As a result, NorRock is required to meet the original listing requirements of TSX in order to remain listed. NorRock does not expect to meet the original listing requirements of TSX.  If NorRock does not voluntarily delist from TSX by March 1, 2012, TSX may delist NorRock's securities.
To maintain liquidity in the NorRock Class A shares, NorRock intends to apply to list its Class A shares on NEX.  NEX is a separate board of the TSX Venture Exchange ("TSX-V") that provides a trading forum for listed companies that have low levels of business activity or have ceased to carry on an active business.  Only companies that were formerly listed on TSX or TSX-V are eligible to list on NEX.  NEX companies are subject to the same disclosure standards as all Canadian public companies and trading on NEX takes place on the same fully electronic system used by TSX-V and is governed by the same trading rules.
NorRock's board of directors and management continue to explore options which they believe will be in the best interests of NorRock and its shareholders.  Any proposed transaction will be subject to receipt of all necessary regulatory approvals.  The business of NorRock may remain in the commercial real estate lending industry or be in a different industry.
Consolidation of Partners REIT Units
In addition, the previously announced consolidation of Partners REIT units on the basis of one post-consolidation unit for every four pre-consolidation units held is now expected to occur on or about February 16, 2012. More information will be disseminated to Partners REIT unitholders closer to that time.
 

The property is located in the Greater Vancouver Area at 7830 Vantage Way, Delta, British Columbia, has a total rentable area of 46,300 square feet and is situated on 2.12 acres. The property is 100% leased until September, 2016 to Zodiac Hurricane Technologies Inc., an international manufacturer of military and commercial grade boats.

PIRET acquired the property on an all cash basis and funded the acquisition with equity from the bought deal financing announced January 11, 2012 and completed on January 26, 2012. The asset was acquired at a capitalization rate of 6.50%.

After completing this transaction, PIRET's portfolio will total approximately 4.2 million square feet, with greater than 16% of the portfolio's gross leasable area in the Greater Vancouver Area.
PIRET's units are listed on the TSX Venture Exchange under the symbol AAR.UN.
 

In second place is Morguard Investments with an impressive event and attention to details as shuttle transportation was provided at the exit of the Chairmans' Reception.

Blakes hosted a dinner reception at the elegant Aria Ristorante.

Fasken Martineau planned a cocktail reception at their beautiful office as partner Mark Brennan provided a guided tour of the art collection.

Avison Young for their part, held a cocktail reception at the Fairmont Royal York where they greeted guests to celebrate the award of a new mandate.

 So to recap the 2011 Top Five Canadian Real Estate Forum Receptions

1 - Jones Lang LaSalle

2- Morguard Investments

3- Blakes

4 - Fasken Martineau

5 - Avison Young

Enjoy the holidays safely! From all of us at The Square Foot

The workplace of today and tomorrow is being shaped by advances in technology and shifting work patterns, according to the results of a new survey conducted by Canadian office furniture designer and manufacturer Teknion. Workplace utilization is expected to increase with more open, collaborative workspaces, fewer private offices and a densification of space.

Survey findings indicate that, by 2015, workplace utilization is expected to increase from levels between 35% and 50% today to 85%, as the desk-to-employee ratio is addressed and space is reapportioned. Strategies that companies are employing to accomplish increased space utilization include:
•    77% - Open, collaborative workspaces with fewer offices
•    62% - Densification of workspaces
•    54% - Reduce square footage footprint through disposition
•    46% - More employees working remotely, from home, satellite or client sites
•    31% - Mobile working programs including desk-sharing, hoteling or coworking spaces
"One surprise is that 77% of respondents are employing more open, collaborative workspaces with less private offices in an effort to reduce their overall space," Sargent said. "This is a huge misconception. Companies rarely achieve a decrease in their overall square footage requirements solely by shifting from private offices to open, shared space. The overall square footage usually stays about the same because of the increase in collaborative or meeting areas. Open, collaborative spaces simply provide more options."
The survey also revealed that 78% of the companies polled have less than 10% of their employees working from home more than one day a week, but expect that to grow by 2015.

"To achieve space reduction, companies are looking to reduce the traditional model of providing every employee with a dedicated workplace. Today, an office with 100 employees might only require desks for 80 due to mobile work programs and desk sharing. However, companies with limited mobility programs, such as allowing staff to work from home one day a week, rarely impact overall square footage because most staff still have a dedicated workspace. Unless employees are out of the office two or more days a week and give up an assigned desk, real estate is usually not affected."

The survey also revealed the most important strategies used to attract the new generation of knowledge workers. "The number one draw according to 41% of respondents is access to flexible workplace options. Another 39% indicated that having the most leading-edge technology was the key. The shift from technology as the main consideration may result from people today being less dependent on the technology supplied by their offices as they often have better devices than those provided by their employer. Today we're becoming a BYOT, or bring your own technology society, and companies are working to support the devices their employees are selecting."

Of the companies surveyed, 89% reported that they plan to increase their investment in productivity-enabling technologies such as voice-activation technologies and sophisticated video conferencing by 2015 beyond current spending levels. Although cloud computing is a strategy 46% of companies are currently employing, 88% of the companies that aren't using cloud computing said they were unsure about its future application or use.

"Today, the only thing we know will be constant is change," Sargent concluded. "It's inevitable so we need to embrace it. Change today is being driven by demographic shifts, economic volatility, the pursuit of sustainability - both for our buildings and for ourselves. But technology is the single largest factor fueling change in the workplace today, so understanding it is essential."

The survey was administered by Teknion to leading U.S. companies in collaboration with CoreNet Global, Jones Lang LaSalle and Cisco. Survey results were presented at the recent Fall 2011 CoreNet Global Summit in Atlanta.

The workplace of today and tomorrow is being shaped by advances in technology and shifting work patterns, according to the results of a new survey conducted by Canadian office furniture designer and manufacturer Teknion. Workplace utilization is expected to increase with more open, collaborative workspaces, fewer private offices and a densification of space. (CNW Group/Teknion Roy & Breton) (CNW Group/Teknion Corporation)

 

Sheraton Red Deer Hotel's new look includes 241-remodeled guest rooms and suites, including the addition of 24 entirely new rooms. Conveniently located only 80 minutes from both Edmonton and Calgary, Sheraton Red Deer is central Alberta's premier meeting destination. The redesign of the Hotel's 241-guestrooms and suites includes contemporary décor, spacious surroundings, signature furnishings and the Sheraton Sweet Sleeper Bed TM.

The Sheraton Red Deer Hotel's renovation provides visitors with an all-new guest experience, including a dramatic entrance to the beautiful new grand lobby featuring comfortable community seating areas and cozy new furnishings.  The new 24-hour fitness facility includes the latest in strength and cardio equipment, a sauna, a steam bath and a seasonal outdoor heated pool.

The Hotel also features a conference centre that is unparalleled in central Alberta. The newly freshened space can accommodate up to 2,000 people and provides guests with virtually endless meeting opportunities with 14 meeting rooms, including a 12,000 square-foot ballroom and a 33,000 square-foot indoor exhibit hall with 26-foot ceilings. The unique exhibit hall space is ideal for trade shows, exhibits, concerts, meetings, weddings and social events. The Sheraton Red Deer Hotel provides clients with everything from on-site catering serviced by dedicated kitchens, to professionally trained on-site audio-visual specialists.

The restaurants and lounges at Sheraton Red Deer Hotel provide guests with plenty of options to dine, relax and explore without ever leaving the comforts of the hotel.

Sheraton Red Deer stands on a strong platform of products, service, dedicated employees and community support and is a long-standing supporter of numerous local community projects and organizations. For more info please visit www.SheratonHotelRedDeer.com
 

In Canada, RioCan acquired an interest in 24 income properties at an aggregate purchase price of $505.9 million at a weighted average cap rate of 6.4% during 2011. RioCan also paid an additional $19.2 million for earnouts at a weighted average cap rate of 6.8%. In the US, RioCan acquired an interest in 14 income properties at an aggregate purchase price of $565.3 million at a weighted average cap rate of 6.9% in 2011. RioCan also paid an additional $10.2 million for earnouts at a weighted average cap rate of 7.8%. In addition to RioCan's $1.1 billion of income property acquisitions, RioCan completed the acquisition of an additional $70.6 million of development properties in 2011.

"RioCan is very pleased to have accomplished another strong year of acquisition activity, that for the second year in a row has surpassed $1 billion," said Edward Sonshine, President and Chief Executive Officer of RioCan. "We have remained disciplined as we developed our acquisition platform in the US and strengthened RioCan's portfolio in Canada with a number of very high quality properties this past year."

Recent Acquisition Activities - Canada
On December 15, 2011, RioCan completed the acquisition of the Runnymede Portfolio. The Runnymede Portfolio consists of five grocery anchored properties in the Greater Toronto Area. RioCan acquired a 100% interest in five properties containing an aggregate of 360,600 square feet with a weighted average remaining lease term of 4.6 years for $91.2 million, which equates to a cap rate of 6.4%. The five properties have a weighted average occupancy of 99%. RioCan assumed the in-place financing, which totals $15.3 million and carries a weighted average interest rate of 5.5% with maturities in 2014, 2015 and 2022. RioCan purchased the portfolio from the vendor through the assumption of the aforementioned debt and otherwise, entirely through the issuance of exchangeable units, resulting in the issuance of $74.9 million of equity after taking into account the assumed debt. The exchangeable units were issued to the vendor at a price of $25.44 per exchangeable unit based on a volume weig hted average price for the seven-day period ending December 9, 2011, resulting in the issuance of 2,945,320 exchangeable units.

Sage Hill Lands

RioCan had previously announced that it waived conditions pursuant to a purchase agreement for the acquisition of a 32 acre greenfield development site ("Sage Hill Lands") in Northwest Calgary for a purchase price of $31.6 million. RioCan has assigned a 50% interest in the acquisition of the Sage Hill Lands to KingSett Capital, on behalf of its KingSett Canadian Real Estate Income Fund ("KingSett"). Upon completion of this acquisition, which is expected to occur in 2012, RioCan will act as development and property manager on behalf of its partner KingSett. This purchase will represent an expansion of the relationship with its partner, and is the first greenfield development property to be acquired with KingSett. Development of this site is expected to commence in 2013 and once completed, the property is expected to contain 347,000 square feet of retail use.
Recent Acquisition Activities - US
On December 16, 2011, RioCan completed the purchase of the Shoppes at Salem. The property is located along Route 28 in Salem, New Hampshire, approximately 45 kms north of Boston, Massachusetts. The 170,270 square foot property was built in 1999. The centre is 100% occupied and has a weighted average lease term of 7.4 years. The property is occupied by five national retailers, Best Buy, Sports Authority, PetSmart, Michaels, and DSW. RioCan purchased a 100% interest in the property for US$39.9 million, at a 7.0% cap rate. Cedar Shopping Centers, Inc. will provide property management services. RioCan assumed the in place secured debt of US$17.8 million that carries an interest rate of 6.2% and is scheduled to mature in December 2012.

On December 14, 2011, RioCan purchased the Market Street Portfolio. The Market Street Portfolio is comprised of two grocery anchored shopping centres located in Dallas, Texas. RioCan acquired a 100% interest in both properties at an aggregate purchase price of US$29.9 million, which equates to a capitalization rate of 7.6%. Sterling Organization ("Sterling") will manage the properties on behalf of RioCan. In connection with the acquisition, RioCan assumed the in-place financing of US$15.2 million that carries an average interest rate of approximately 6.0% with maturities in 2014 (US$3.3 million), 2024 (US$.8.6 million) and 2023 (US$7.7 million).

The properties comprising the Market Street Portfolio are:
- Market Street at Stonebridge Ranch is a 88,389 square foot grocery anchored centre in McKinney, Texas, located approximately 50 kms north of Dallas. The property, built in 2004, has a weighted average lease term of 9.5 years and is anchored by a Market Street grocery store.
- Market Street at Colleyville is a 72,617 square foot stand-alone Market Street grocery store that is part of a larger retail centre in Colleyville, Texas, a suburb of Dallas. The property, built in 2003, has a remaining lease term of 12.2 years.
Market Street Grocers, which is owned by United Supermarkets, is a Texas-based family owned grocery store chain with 51 stores across Texas. Market Street focuses on everyday grocery items combined with speciality items, whole-health and gourmet items as well as prepared items.
 

"GWL Realty Advisors' participation in the Race to Reduce program is a demonstration of our commitment to partner with and support our tenants' efforts to reduce energy use," explains Andres Bernal, National Director, Corporate Sustainability and Energy Management, GWL Realty Advisors.

"The less energy a building consumes, the more attractive it is to tenants, employees, and the landlord, and the closer we get to our vision of a region that flourishes economically, socially and environmentally." says Linda Weichel, VP, Partnerships at CivicAction and responsible for the Greening Greater Toronto initiative.

Commercial office buildings in the Toronto region generate nearly 20 per cent of the region's carbon emissions, and consume 37 per cent of the region's electricity and 17 per cent of the natural gas.

GWL Realty Advisors has long shown its commitment to reduce the environmental footprint of buildings it manages on behalf of its clients. The company attributes success in this area to real estate owners who invest consistently and prudently in their assets, tenants who actively participate in programs and employees who are passionate about positively shaping the environment.

Many tenants are already enjoying successful partnerships with GWL Realty Advisors in a common goal of reducing environmental impact, including Commerce Court tenant Stikeman Elliott LLP. "Our partnership with CivicAction's Greening Greater Toronto initiatives and with GWL Realty Advisors in the Race to Reduce program provides a natural extension of our sustainability commitment, affording us an opportunity to share ideas with other tenants and work towards making a significant impact on energy conservation," said Michelle Taylor, Director of Facilities at Stikeman Elliott LLP.

On November 30, GWL Realty Advisors' tenants and managed buildings received numerous awards at the inaugural Race to Reduce Awards:
•    A major tenant at Commerce Court, Stikeman Elliott LLP received an Action & Innovation Award
•    North York City Centre was one of two buildings to receive an award recognizing the Lowest Energy Use for a Building under 500,000 square feet.
•    Several buildings earned participation awards in one of three categories based on the per centage of tenant space registered:
o    180 Queen Street West received a gold award
o    190 Simcoe Street, 600 Cochrane Drive, 330 University Avenue, and Commerce Court received silver awards
o    15, 19 and 27 Allstate Parkway, 4 King Street West, North York City Centre, Toronto College Park and Trillium, Executive Centre received bronze awards.
 

The Board of Trustees has carefully reviewed and fully considered the Offer. In making its recommendation, the Board of Trustees received the unanimous recommendation of  the Special Committee, which is comprised of Karen Prentice (Chair), Gérard A. Limoges and John Levitt.  The Special Committee, with the assistance of its legal and financial advisors, carefully reviewed the terms and conditions of the hostile Offer and unanimously concluded that the Offer is inadequate and not in the best interests of CANMARC and its Unitholders.

A copy of the Trustees' Circular, which sets forth in greater detail the Board's recommendation and the reasons for rejecting the unsolicited Offer, is available on SEDAR at www.sedar.com and is being mailed to all Unitholders.

The Special Committee's financial advisor, TD Securities Inc. ("TD Securities"), has provided an opinion dated December 12, 2011, that the consideration pursuant to the Offer is inadequate, from a financial point of view, to CANMARC's Unitholders, other than the Offeror and its affiliates.  The full text of the opinion, setting out the scope of review, assumptions and limitations in connection with the opinion, is attached as Schedule A to the Trustees' Circular and should be reviewed and considered in its entirety in conjunction with the review of the Circular.

"Cominar's unsolicited Offer price is below the current trading price of CANMARC Units on the TSX and the market price is clearly indicating that CANMARC's high quality assets and track record for growth are worth much more," said Karen Prentice, Chair of the Board of Trustees and of the Special Committee. "Cominar's unsolicited Offer is inadequate and Unitholders should not tender their Units to it."

"CANMARC has delivered an annualized total return of 31% to CANMARC Unitholders since its initial public offering in May 2010.  With eleven acquisitions completed and with a demonstrated ability to deliver strong organic growth from its office and retail assets, CANMARC has become one of the leading growth and income vehicles in the REIT sector," said Jim Beckerleg, President and Chief Executive Officer.  "Since our IPO in May of 2010, we have substantially outperformed both Cominar and the S&P TSX REIT sub-index.  Our Unitholders deserve to be fully compensated for the quality and potential of our assets, and for our demonstrated ability to generate growth.  Unitholders should not expect less than a substantial premium for their Units."

Reasons For Rejecting the Unsolicited Offer
The Board of Trustees fully considered the Offer and there are numerous reasons for their recommendation to reject the unsolicited Offer including the following:
●     The unsolicited Offer is financially inadequate.
     a)     Since the announcement of the Offer on November 28, 2011, the CANMARC Units have consistently traded at a premium to the Offer price.
     b)      The Offer represented only a 15.2% premium to CANMARC's Unit closing price on the TSX on the last trading day prior to announcement of the Offer, which is well below the average of comparable historical REIT transactions considered most relevant. These transactions suggest that the premium implied by the Offer does not provide Unitholders with an appropriate change of control premium.
     c)      The financial advisor to the Special Committee has provided their opinion that the consideration pursuant to the Offer is inadequate, from a financial point of view, to CANMARC's Unitholders, other than the Offeror and its affiliates.
     d)      Several equity research analysts have suggested that the Offer does not fully value CANMARC.
     e)      The Offer fails to compensate Unitholders for CANMARC's future growth potential.  CANMARC's highly experienced management team has demonstrated a strong ability to capitalize on internal growth opportunities and acquire high quality assets adding significant value to the REIT.  Since its IPO, CANMARC has closed $437 million of acquisitions representing approximately 2.3 million square feet of additional Gross Leasable Area ("GLA"), an increase of 34%.  As part of its continued growth strategy, management of CANMARC has identified and is pursuing an acquisition pipeline that is currently in excess of $250 million.
●     The value of the unit alternative in the Offer may be negatively affected by downward movements in the value of the Cominar units.
     Any decline in Cominar's market capitalization or valuation multiples, due to any number of factors including poor operating or financial performance, could result in a material reduction in the implied price of the unit alternative.
●     Historically, CANMARC has delivered significantly higher returns to Unitholders than Cominar.
     Since its IPO to November 25, 2011, CANMARC has delivered an annualized total return of 31% to CANMARC Unitholders, compared to Cominar which has delivered only 18% to its unitholders.
●     Under the unit alternative, the value of the combined entity's units is uncertain;
     a)      Electing the unit alternative would increase Unitholders' exposure to the Quebec market from CANMARC's current level of 67% of GLA to 84%.
     b)      CANMARC Unitholders electing the unit alternative would be exposed to increased leverage and higher corresponding financial risk.  CANMARC's Total Debt / Gross Book Value ("GBV") ratio was approximately 50% as of September 30, 2011 compared to Cominar's pro forma Total Debt / GBV ratio of approximately 58%.  During Cominar's most recent earnings call on November 10, 2011, Cominar indicated it would pursue a target debt level of 50% of the portfolio's value.  In addition to exposure to higher financial risk, higher leverage may limit future growth and the objective to significantly reduce leverage could create an overhang or negatively impact the trading price of the Cominar units.
●     CANMARC Unitholders who elect either the cash alternative or the unit alternative may be subject to income tax.
     As per the Offer Circular, taxable CANMARC Unitholders who dispose of CANMARC Units under the Offer will generally be subject to income tax on the cash received plus the fair market value of any Cominar units received.
●     The unsolicited Offer has been rejected by all of the trustees and officers of CANMARC;
     The Board has been informed that, as of the date of this Circular, all of the trustees and officers of CANMARC intend NOT TO ACCEPT the Offer.
●     Cominar's unsolicited Offer is not a permitted bid as defined under the unitholder rights plans of CANMARC;

CANMARC adopted its first unitholder rights plan on May 25, 2010 and a new unitholder rights plan on December 6, 2011 (together, the "Unitholder Rights Plans"). The purpose of each Unitholder Rights Plan is to provide the Board and CANMARC Unitholders with sufficient time to appropriately evaluate the Offer and explore and surface all other strategic alternatives that are in the best interests of CANMARC Unitholders, as well as to protect CANMARC Unitholders by providing an incentive for all potential bidders to comply with the conditions specified in the "Permitted Bid" provisions of the plans. If such bidders do not comply with the Permitted Bid provisions, they will be subject to the dilutive features of the Unitholder Rights Plans.
●     The timing of the unsolicited Offer is opportunistic and is designed to take advantage of the difficulty that other potential counterparties could have in organizing their affairs through the holiday season;
     The commencement of the Offer on December 2, 2011 serves the purpose of taking advantage of the difficulty other potential bidders and interested parties could be expected to incur in organizing their affairs on short notice over the holiday period to complete a due diligence review of CANMARC and propose and negotiate agreements respecting potentially higher value alternative transactions prior to the expiry of the Offer on January 12, 2012.
●     Superior proposals delivering greater value for CANMARC Unitholders may emerge;
     In fulfilling its duties to CANMARC, the Special Committee is pursuing and evaluating alternatives to the Offer in order to identify the alternative that is in the best interests of CANMARC Unitholders. CANMARC and its financial advisor are broadly canvassing other parties who may be interested in a transaction with CANMARC that reflects higher value and better recognition of CANMARC's quality assets, operating platform and numerous growth opportunities.
●     The unsolicited Offer is highly conditional and is not a firm offer.

The Offer contains numerous conditions which must be satisfied or waived before Cominar is obligated to take up and pay for any securities deposited under the Offer. A number of the conditions are broad, in the sole discretion of Cominar and are not subject to any materiality thresholds or other objective criteria commonly found in other offers, giving in effect Cominar the option to decline to proceed with the Offer. CANMARC believes that the conditions give Cominar broad discretion not to complete the Offer.
"In fulfilling its duties to CANMARC, the Special Committee is pursuing and evaluating alternatives to the Offer in order to identify the alternative that is in the best interests of CANMARC Unitholders," said Karen Prentice. "CANMARC and its financial advisors have already commenced a process to contact parties who may be interested in a superior alternative transaction with CANMARC that reflects the higher value of the REIT."
 

 That announcement sent stock markets tumbling around the world.
On the table had been an outline agreement including an estimated trillion euro deal which effectively quadruples the amount of cash available for debt-ridden European counties in the European Financial Stability fund (EFSF).
The Greek Prime Minister, possibly the most controversial, if not unpopular man in Europe, later renounced the referendum plan after combined German and French pressure at a G20 meeting in Cannes where it was suggested that its members pour billions in currencies into the IMF to boost the world economy and avert a 30s-style depression.

At that meeting it was made clear, in a message that equally goes for Spain, that Italy could not expect a bailout from Europe, and had to agree to have its progress on structural reform and budgetary spending monitored by the IMF and EU.

Greece in return for further tranche of 130 billion Euros and 50 per cent write down on its debts, had to agree to a national emergency government, while its people await the outcome of a snap election in February after Papandreou stood down.
But whatever the agreements, they are primarily about debt. But Europe’s problems, including Portugal’s, are not just confined to debt. They are about sluggish growth, poor productivity, under-competitiveness and too much state presence in ordinary life.
Even if the Greek government survives and continues to receive its bailout funds, where ultimately is the money for this EFSF safety cushion coming from?

The Trillion Euros would not come from tax payer’s money, but Special Purpose Vehicles or SPIVS, whereby private investors buy up bonds from euro fund which agrees to underwrite some potential losses.
In practice, instead of exposure from any one country, the exposure risk is spread out across Europe.
There had been talks that China and Brazil could inject up to 100 billion Euros of investment by contributing towards the European rescue fund, but China wants assurances that Greece is facing up to its responsibilities and Brazil has declined.

The Question is if that money will prove enough to calm market speculation and prevent contagion to other Euro Zone countries like Italy, Spain and heaven forbids, even France.
Italy too has the largest bond market in Europe and its economy is a mess.
The euro crisis, which was sparked Greece’s 350 billion euro debt nearly two years ago, has in recent months led  some economists, analysts and commentator to discuss the impossible becoming possible- the end of the single currency or even some counties like Portugal, Greece and Spain leaving the euro altogether.
Most economists agree that leaving the euro would be a disaster for Portugal and the country would have more to lose in the short and medium terms than it would gain from being able to devalue its currency.
Abandoning the euro is not the option since contagion in the other Euro counties and a fall in the value of the euro would not just have effects in Europe but in other counties as well.
What is needed is political decisiveness from Europe’s leaders; these postponement and putting off decisions are unforgiveable not only for Europe but for the world, say most economists at MAPIC 2011.

Five key decisions need to be made by the European Union
1-    Recapitalise the banks with at least 100 billion Euros
2-    Pump in enough funds into the EFSF to create a firewall against speculative contagion
3-    Mark down and reschedule these countries debts
4-    Move towards greater budgetary, economic and fiscal union
5-    Create a sustainable, long-term blueprint for economic development and growth in Europe
 Portugal’s accumulated notional debt currently stands at 148,668 billion Euros, or almost 14, 000 Euros per head of the population, and that need to be dramatically reduced if market confidence is to be restored.
The EFSF currently contains 440 billion Euros but will need at least a trillion Euros and many Europe a members like Germany, France and Holland are reluctant to fork out the funds because it is an unpopular measure among the electorates. Even so, there are questions as to whether a trillion Euros will even be enough. But if they don’t, the markets will continue to lose confidence in the euro and further downgrades can be expected from the rating agencies. Contagion could spread to Italy and Spain and on the banking sector in the north of Europe which is heavily exposed to sovereign bonds from debt-ridden southern European countries.
The only way forward in the short term is to cut the amount countries like Greece, Portugal and Spain owe to investors, increase the bailout fund and recapitalise the banks. It’s not a happy notion but then the consequences of not doing so would be nothing short of economic, financial, political and social Armageddon, not only in Europe but also the United States and the rest of the world.

The question that still remains is how Portugal, Spain, Greece and Italy can move towards financial sustainability and growth and how long that would take? Without that Europe and its currency could find itself back to square one within a few months.
 

Innovative New York’s restaurateur Jonathan Morr, a well-known creative entrepreneur, was looking for a design team that would help him develop a unique solution that would fit in this iconic site. Created from a shipping container the concept is a first in the USA. It is the modern-day reinvention of the old-fashion canteen and serves iconic NY street food with gourmet flair. The SnackBox had to stand out in this visually saturated environment. The elaboration and development of its visual identity and brand were born from this idea and succeeds to convey that “NY personality” to the pop-up restaurant.

Located on a section of Broadway that is now closed off to vehicular traffic, the SnackBox is easily movable and entirely self-sufficient. It works off the grid with its fresh and grey water supply tanks that are embedded in the floor while power comes from a hybrid energy system combining electric batteries and generator. The upper section of the walls pivot upwards, transforming into cantilevered steel awnings, and provide shelter from the elements. Inside, working within the physical limits of the container, space was carefully planned and evaluated to optimize all useable space. During colder days, heating for the staff is provided by recuperating the heat from the generator.

The SnackBox’s black & white graphic stripes elegantly contrasts by opposition to the neon rainbow of color of its surroundings. At night, the SnackBox vanishes back into its cube, ready to redeploy in minutes, bright and early the next morning.

For more information : www.aedifica.com

The MEC building is an example of a project where the company was at the table early in the process – it’s typically called in when a client has an idea about the type of building they would like, Broccolini explained.
“I think one of the things that we sort of pride ourselves on is really a personalized service.  We’ve really been characterized as design builders,” he said.

Its dual roles as both a builder and a developer mean that it understands that both the general public and the clients have to be happy with the end products, Broccolini explained.

Incorporating what cities are looking for into the overall planning of the project is also important; for instance, during a new Ottawa project, an office tower with Export Development Canada, Broccolini had to make an effort to understand the overall city planning requirements.

In Ottawa, the company is currently working on a lot of office space, but is also increasingly looking at the condo sector in Toronto, Montreal, and Ottawa.

The return to the residential side of the market is a circle back to where it all began, with Broccolini’s grandfather building single-family homes and apartment buildings. Sixty-five years later, Broccolini is in the third generation in his family to run the business – a generation that wants to build on the foundation his father, uncles and grandfather built, he added.

The company also boasts staff members who have been with the business for a long time, and it’s like a family, Broccolini said, down to everyone sitting down to eat lunch together.

Over the past decades, Broccolini Construction has mostly focused on the Quebec market, moving into Ottawa seven years ago, where it’s currently working on finishing the EDC project and a million square feet of office space is under construction for Public Works.

Now that the company feels settled there, the next step is Toronto.
It’s not looking to expand too quickly, focusing on steady growth instead of trying to grow by leaps and bounds. For instance, the company hasn’t taken an aggressive approach in Toronto yet, spending the first year introducing itself to new clients and letting existing clients know they were open for business in the market.

That approach means they’re not aiming to jump into $100 million projects immediately, Broccolini noted.
In the same vein, while the company has discussed going into Calgary, it doesn’t want to spread itself too thinly. “We have a great reputation and we want to keep it that way,” he said.
Its focus in Toronto right now is on building the team. It’s important to have the right people at the table, especially on a big project, Broccolini said, explaining that the company has put a lot of time and thought into finding the right fit for certain roles.

It’s also important to make sure people on that team are like-minded and share the same vision, something that will, in the end, result in a better product, he said. 

And when it comes to those better products, a project that is energy-efficient or LEED certified isn’t all that complicated, Broccolini said, explaining that “all it is is getting smart people around the table, people that want to make a difference, that have great ideas, that are just finding a better way to do things.”

The report enables employees to get a wider understanding of what the company’s all about than they would get in their day-to-day work, and tenants to gain an understanding of the whole company beyond the specific buildings they occupy.
“It’s just a really nice crash course,” Sutic said.

Its HR surveys have found that employees value sustainability, and the more employees understand how sustainability is becoming increasingly imbedded in the company’s decision-making at all levels, the better, she adds.
 

Though Bentall put out a sustainability report last year, this was the first one to incorporate the Kennedy portfolio. The company stuck with the same format, a level B GRI global reporting initiative.
In order to manage the raw data, Bentall used Eco Tracker, a proprietary system they developed with an energy consultant, which manages data like information on water consumption and waste management. It has been in place for several years and the company is now bringing their new U.S. assets into the system as well.
Bentall also surveyed “more social metrics” like fundraising initiatives and volunteer time, and is currently building a system that can track that data on an ongoing basis. The report also incorporates more static data, like governance information.
 

Information and data management is very important, since “you can’t manage what you don’t measure,” Sutic said.
 

Tracking energy usage and carbon emissions would also prove useful should a cap-and-trade system be put in place, Sutic noted, as it would allow the company to identify the carbon emission reductions it’s made over the years.
 

She doesn’t see such a system happening in the short term, or even within the next five years, and because there’s no clear policy framework, it’s hard to tell what it could look like. Still, it’s something the company prepares for by tracking pertinent data.
 

Sutic is one of three people at Bentall Kennedy whose work involves sustainability, energy management, and social responsibility “in a big way.” It’s a department she describes as lean in comparison to those in some other industries, but the company is among only a small percentage of real estate companies to have employees who focus on sustainability.
 

But views are changing; Sutic explained that there’s a growing understanding in both the real estate industry and in other industries that significant steps have to be taken to fight climate change.
There’s an increasing sense of understanding and urgency over the fact that a reduction of a few per cent year over year over the next few years likely won’t be sufficient, and if nothing is done, there will be very negative consequences four or five decades from now, she said.
 

In the future, the industry will see increases in “things like benchmarking and metrics and public benchmarking,” a shift that’s already starting to become apparent, she predicted.
The industry is also seeing a shift to operator and employee training around sustainability issues and to engaging tenants to change their behavior in order to use energy more effectively.
 

For instance, though a lease may stipulate a building be kept fully operating until 10 p.m., if employees are leaving two hours prior to that, an arrangement could be made to shut the building down earlier. If the tenant does need it past that time, all they have to do is make a phone call.
 

However, there’s one issue when it comes to dealing with sustainability and the human factor – it’s messier, said Sutic. While something like a lighting retrofit offers simple math between what was spent and what the reduction will be, when it comes to employee and tenant engagement, it’s a bit more difficult to predict the end results.

 Click here to view the report

    proposes to acquire 100% of the outstanding units of CANMARC, on a fully diluted basis, for an all cash purchase price of $15.30 per unit;     would offer CANMARC unitholders a unit election option pursuant to which holders of units would exchange CANMARC units for Cominar units, with an aggregate maximum of 16 million Cominar units available pursuant to this option, subject to proration; and sought the REIT to enter into exclusive negotiations with a view to sign definitive agreements within a seven day period, and indicated that it would be prepared to immediately announce its intention to make its offer, by way of takeover bid, directly to the unitholders of CANMARC failing CANMARC's agreement to enter into such exclusive negotiations by 5:00 p.m. on November 27, 2011.

In response to the Cominar Proposal, CANMARC's board of trustees (the "Board") has formed a special committee (the "Special Committee") of independent trustees comprised of Karen A. Prentice (Chair), Gérard A. Limoges and John Levitt to, among other things, consider and review the Cominar Proposal and review and pursue any other alternatives that may be in the best interests of the REIT.  The Special Committee has retained Fasken Martineau DuMoulin LLP as its legal advisor. The REIT has also retained TD Securities Inc. as its financial advisor and Osler, Hoskin & Harcourt LLP continues to act as the REIT's legal advisor.

Although Cominar indicated its desire to negotiate a transaction with the support of the Board, it demanded a response satisfactory to Cominar from the REIT by November 27, 2011 at 5:00 p.m. EST, failing which they would be prepared to immediately announce their intention to make their offer, by way of takeover bid, directly to the unitholders of CANMARC.

The Chairman of the Board and Special Committee, Karen Prentice, said, "Given the REIT was not for sale and that it continues to successfully execute on its business plan, it is unreasonable to ask the REIT to respond to their proposal within a 48 hour window", adding "the Board and the Special Committee, with the support of their advisors, will diligently assess the current situation and will fully consider any offer and communicate the REIT's views to its unitholders.  In the interim, we would encourage our unitholders not to take any action with respect to the proposed offer."

In conjunction with its initial public offering, CANMARC adopted a unitholder rights plan as a mechanism to ensure that in the event of an unsolicited offer, there would be adequate time to appropriately evaluate the offer and to explore alternatives.

"Since its initial public offering on May 25, 2010, CANMARC has delivered an annualized total return of 31% to unitholders, compared to 18% for Cominar units", added Karen  Prentice. She further said "we have a highly experienced management team that has demonstrated their sustained ability to acquire new, high quality assets on an accretive basis and to manage our properties and our business in a manner that benefits both our tenants and our unitholders. CANMARC has created significant value for our unitholders."

"Based on the REIT's positive financial results, high asset quality, strong balance sheet, numerous organic growth opportunities and attractive acquisition pipeline, there continues to be significant upside in CANMARC's unit price." said Jim Beckerleg, CEO of CANMARC.
 

Cominar announces acquisition of units of Canmarc and intention to make an all-cash offer

Offer Highlights

    Unitholders of Canmarc Real Estate Investment Trust ("Canmarc") to receive $15.30 in cash per Canmarc Unit (as defined below), not subject to proration
    All-cash offer represents a premium of 15.2% over the closing price of the Canmarc Units on November 25, 2011
    Opportunity for Canmarc unitholders to participate in the growth of the combined entity through a unit election option, capped at 16 million units (the "Cominar Units") of Cominar Real Estate Investment Trust ("Cominar")
    Combined entity ideally positioned for growth, with a unique portfolio of high-quality real estate comprising approximately 30 million square feet, attractive geographical and asset-class diversification and an enhanced capital markets profile
    Transaction immediately accretive to Cominar's distributable income, funds from operations and adjusted funds from operations
    Cominar and its subsidiaries own approximately 15.1% of the total issued and outstanding Canmarc Units

Cominar (TSX: CUF.UN) announced  the purchase, by way of a private agreement (the "Purchase Agreement"), of a total of 3,099,300 Canmarc Units, representing 5.7% of the total issued and outstanding Canmarc Units.

As of the date hereof, Cominar and its subsidiaries own approximately 15.1% of the total issued and outstanding Canmarc Units, making Cominar the second-largest unitholder of Canmarc, based on publicly-available information.

Intention to Make an Offer

Cominar also announced today that it intends to make an offer to purchase, through wholly-owned subsidiaries, all of the issued and outstanding trust units of Canmarc (the "Trust Units"), together with any associated rights (the "URP Rights", and together with the Trust Units and the Trust Units that may become issued and outstanding upon the exercise, conversion or exchange of securities convertible into or exchangeable for Trust Units, collectively, the "Canmarc Units") that Cominar and its subsidiaries do not already own (the "Offer").

Cominar approached the Board of Trustees of Canmarc to pursue a supported transaction. Canmarc has advised Cominar that it is not prepared to enter into such discussions.

Pursuant to the Offer, the unitholders of Canmarc will receive $15.30 in cash per Canmarc Unit (the "Cash Alternative"), not subject to proration. Alternatively, Cominar proposes to offer Canmarc unitholders the opportunity to participate in the growth of the combined entity via a unit election option pursuant to which Canmarc unitholders would exchange each Canmarc Unit they hold for 0.7054 Cominar Units (the "Unit Alternative"), with an aggregate maximum of 16 million Cominar Units available pursuant to this option, subject to proration.

The Offer, which was unanimously approved by Cominar's Board of Trustees, is expected to be immediately accretive to Cominar's distributable income, funds from operations and adjusted funds from operations per Cominar Unit.

The Offer is not subject to a vote by Cominar unitholders.

Pursuant to the Purchase Agreement, Cominar agreed with the vendor of such Canmarc Units that if, within a 180-day period starting as of the date hereof, Cominar, or any of its affiliates, completes the Offer for consideration to the unitholders of Canmarc in excess of $15.30 per Canmarc Unit, it would pay the vendor the difference between such offered consideration and $15.30.

The Cash Alternative

The all-cash purchase price under the Cash Alternative represents a premium of 15.2% over the closing price of $13.28 per Canmarc Unit on November 25, 2011, the last trading day prior to the announcement of the Offer.

The consideration under the Cash Alternative provides Canmarc unitholders with certainty of value and immediate liquidity, and removes the risk associated with the continued ownership of Canmarc Units.

The Offer is not subject to any financing condition. National Bank of Canada, Bank of Montreal and Caisse Centrale Desjardins have provided Cominar with a commitment to fund the entire consideration payable for the Canmarc Units and back-stop post-closing refinancing and liquidity requirements.

The Unit Alternative

Based on the exchange ratio offered under the Unit Alternative and before any proration of the unit consideration, the monthly cash distributions to Canmarc unitholders electing the Unit Alternative are expected to increase by approximately 6.9%.

Additionally, Canmarc unitholders electing the Unit Alternative will have the opportunity to participate in the future upside of Cominar.  The acquisition of Canmarc is expected to significantly enhance Cominar's profile by providing it with the following benefits:

    Addition of high-quality, complementary portfolio of properties: The acquisition of Canmarc will provide Cominar with an additional 8.8 million square feet of high-quality real estate that is complementary to its existing portfolio. Combined with Cominar's existing properties, the addition of Canmarc's assets will create a unique portfolio of high-quality properties including a number of landmark buildings.

    Enhanced size and diversification: The acquisition of Canmarc will increase Cominar's asset base by approximately 42% to approximately 30 million square feet, with an enhanced footprint in the Province of Québec and a meaningful presence in the Maritimes, western Canada and Ontario. Furthermore, Cominar's portfolio will benefit from enhanced diversification among the office, retail and industrial asset classes.

    Improved capital markets profile: The acquisition of Canmarc will increase Cominar's enterprise value to $4.4 billion, creating the second-largest diversified REIT in Canada, while increasing liquidity for Cominar unitholders.  Accordingly, Cominar will benefit from stronger access to capital.

    Lower cost of capital: The increased size and enhanced geographic and asset class diversification resulting from the acquisition of Canmarc is expected to allow Cominar to benefit from a lower cost of capital, thus improving its competitiveness for future asset and portfolio acquisitions.

    Positioned for further growth: The combined entity will be ideally positioned to execute Cominar's continued expansion in its key markets and in the Ontario market.

    Synergies: Given the scale of its existing operations in Québec, Cominar expects to realize synergies from the combination of the two entities. Cominar's knowledge of the key markets in which Canmarc operates is expected to result in lower operating costs and improved operating efficiencies, creating further synergies for Cominar.

    Immediately accretive: The transaction is expected to be immediately accretive to distributable income, funds from operations and adjusted funds from operations.  The accretion to adjusted funds from operations is in turn expected to result in a decreased payout ratio for the combined entity.

Mr. Michel Dallaire, Cominar's President and Chief Executive Officer, said: "The Canmarc assets are highly complementary to Cominar's existing portfolio.  With a unique base of high-quality properties benefiting from increased scale and diversification, as well as a significantly-enhanced capital markets profile, Cominar will be ideally-positioned to continue its geographic expansion."

Pro Forma Cominar Leverage

While the Offer will require Cominar to temporarily increase its leverage, Cominar intends to align its capital structure with its long-term objectives over time.

Mr. Robert Després, Chairman of Cominar's Board of Trustees, said: "Cominar's historically conservative approach to leverage has provided it with the financial flexibility to pursue attractive investment opportunities such as the acquisition of Canmarc. Cominar's Board of Trustees is confident that management will successfully reduce Cominar's leverage in due course through access to attractive capital, reflecting its enhanced scale and geographic and asset class diversification."

Additional Details on the Offer

Cominar's takeover bid will be made available to unitholders of Canmarc following receipt of a complete unitholders' list from Canmarc or earlier by publication of an advertisement of the takeover bid. The Offer will be subject to certain conditions outlined in the definitive offer documentation that Cominar expects to file in the near future with Canadian securities regulatory authorities.
 

Andrew MacLachlan has joined Jones Lang LaSalle as Executive Vice President and will provide advisory and transaction services to Jones Lang LaSalle's clients in Alberta.

"Calgary is an essential market for Jones Lang LaSalle and it was important to appoint an experienced and well known professional," said Jim Becker.  "Andrew is exactly the right person to grow and develop our business as well provide the best advice and services to our clients in the region."

Andrew brings more than 25 years of commercial real estate experience with specialist knowledge of leasing and sales.  He has held executive positions with commercial real estate firms in Calgary and Montreal including DTZ Barnicke. He joins Jones Lang LaSalle from UGL Equis.  "It is great to join a global firm which is growing in Canada," said MacLachlan.  "I am looking forward to developing the business across Alberta and working with a global suite of services that will truly meet our clients' demands."

A licensed broker through the Real Estate Council of Alberta, Andrew is on the Board of Directors of the Ability Society, a non-profit that helps children and adults with special needs and seniors become active members of society. He is also a hockey enthusiast and a published author of the book "Yes, We have hockey".

To contact Andrew:

Andrew MacLachlan
Executive Vice President

Jones Lang LaSalle Real Estate Services, Inc.
Suite 301
400 - 5th Avenue SW
Calgary, AB T2P 0L6
Canada

direct       +1 403 539 8711
mobile     +1 403 614 2324
email   andrew.maclachan@am.jll.com    www.joneslanglasalle.ca

Raffles City Hangzhou is an iconic mixed-use development in China's Hangzhou city, the capital of Zhejiang Province in east China and an hour's train ride from Shanghai's Hongqiao airport. Located at Hangzhou's up-and-coming Qianjiang New Town, a key business district, Raffles City Hangzhou comprises a shopping mall, residences, a hotel and offices. The development is set to be an all-in-one destination to shop, work, play and live in, when completed in 2013. With its outstanding architecture, the development will be an icon in the city. The design was inspired by the tides of the Qiantang River in Hangzhou, which surges inland from the sea and twists and narrows in the process. The graceful towers, with their community spaces and landscaped gardens at intermittent heights, reflect the wave-like motion of the river. The shopping mall, from basement one to level seven, takes up more than 111,483 m². Basement one enjoys direct connectivity to future subway lines. Raffles City Hangzhou will house international fashion brands, a supermarket and entertainment facilities, such as a cinema.

       Uberlândia Shopping (Brasil), presented by Sonae Sierra (Portugal)

This €62 million project in the Mineiro Triangle region in the south of the city of Uberlândia will spread over two floors covering 154,000 m2, containing 201 shops, 11 department stores, restaurants, a Walmart superstore and six new-generation cinemas. Uberlândia Shopping will include 2,400 parking spaces, and another park for bikes. José Quintela de Fonseca is responsible for the architecture and has been inspired by the lush local plant and tree life. He will design Uberlândia Shopping with the colours and textures typical of the area, using natural elements such as stone on the facade and in the hallways, together with the "Ipê" tree - a major symbol of local flora that is represented in the centre's logo. The design builds on asymmetry and geometric shapes to create large glazed areas that take advantage of natural light. The centre also applies modern solutions to reduce energy and water consumption and obtain ISO 14001 environmental certification. It also plans to include cutting-edge technical management systems, and a rain water collection facility for irrigation, site cleaning and fire-fighting services. The centre is scheduled to open in 2012.

    Morocco Mall (Morocco) presented by Rising Star Arch. Davide Padoa of Design International (United Kingdom)

With a highly-innovative concept 'Retailtainment,' Morocco Mall is a large development that aims to revolutionize modern retail across North Africa and expects to draw 14 million visitors yearly. Located on the western outskirts of Casablanca, facing the Atlantic Ocean, Morocco Mall offers a unique mix of activities, positioning the mall as a destination where all target customer needs are met. The largest musical fountain in Africa, a spectacular one million litre aquarium with panoramic elevator that leads to four different food streets, exclusive services, famous luxury brands like Galleries Lafayette, Louis Vuitton, Dior, Gucci, Ferragamo, Ralph Lauren, Zegna, Fnac, Gap – all seen for the first time in Morocco - as well a large number of unique attractions such as a fun park with ice rink and an Imax theatre, will satisfy even the highest expectations. The ambitious project, designed by one of the most demanded contemporary retail architects - Davide Padoa of Design International - follows the most up-to-date standards in sustainability and energy efficiency. Skylights and windows are designed to make maximum use of daylight, while keeping sunlight intake to a minimum during the hottest parts of the day. Morocco Mall will open its doors in November 2011, and it is already labeled as one of the new national landmarks. The development covers a total construction area of 200,000 m², with a total GLA of 75,000 m² for the mall, it includes three levels of shopping and two levels of car parking. Intelligent design by the architect fulfills the vision of developers Groupe Aksal and Nesk Investment.

   Emporia (Sweden), presented by Klépierre (France)

Developed by Steen & Strøm, a major shopping centre player in Scandinavia (Klépierre France is the leading shareholder) for an investment of €358 million, the Emporia shopping centre is located in the heart of the Øresund region to the southeast of Malmö, just 20 minutes from Copenhagen in Denmark. This is a front-line region in Europe with 3,6 million inhabitants and a highly international mind-set. The shopping centre is the most spectacular in Scandinavia and will open in late 2012, offering a very broad retail mix that will later extend to cultural facilities and leisure activities. A total retail space of 78,000 m² will provide customers with more than 220 shops and restaurants. The project was designed so that locals can find both Swedish brands and international concepts, luxury brands and a variety of cafés and restaurants. Designed by Swedish architect Gert Wingårdh, the linear structure of Emporia features a curved shape made from 800 separate sheets of bent glass at each entrance. Two monumental plazas, both majestic and welcoming, form part of the originality of this site: one is golden, a symbol of the amber that is still produced in this part of Sweden, while the other is turquoise, evoking the Baltic Sea and nearby Denmark.


 

http://www.joneslanglasalle.ca/ResearchLevel1/Canadian%20Office%20Statistics%20Q3%202011.pdf

 

For the complete report click here

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In terms of yield requirements, the OCRs for Single-Tenant Industrial continue to exhibit either stability or compression in rates across nearly all markets from the previous quarter. Rates at the upper end (8.5% to 8.8%) are observed in Montreal, Quebec City, and Halifax.


Property Preferences

There has been a dramatic repositioning of property type demand in the third quarter of 2011. The current quarter results suggest that Tier 1 Regional Mall and Retail sector in general has again become the “Flavor of the quarter” among investors. The others in the Top 5 positions include Multi-tenant Residential, Downtown Class “AA” office, Suburban Multi Unit Residential and Single Tenant Industrial. Office products overall have seen positive momentum ratio change, which suggests that demand for this sector remains high. An interesting observation is that Suburban Class “B” Office has elevated to third last position from last in Q2, as market fundamentals for this asset class are slowly improving. It will be interesting to see if this rise continues in to the next quarter.

 


Debt Outlook
Another positive sentiment is noted with regard to anticipated interest rate impact. The chart on the right shows the Cost of Debt Outlook for the next three months. The majority of respondents anticipated “no change”, and this response increased by 58% from the previous quarter. There still remains a cautious outlook among some investors about cost of debt “increasing”, however the response rate for this category declined by about 27%. Generally the investment trends survey suggests a balanced view of interest rate risk: neither overly optimistic nor too pessimistic.
 

More Stability to Come
It remains to be seen if this growth can continue or will stabilize in upcoming quarters given the ongoing dismal news of poor economic performance in USA and Debt Crisis in Europe, and its anticipated consequences in the Canadian market. On a positive note, given Canada’s strong economic engine in comparison to global markets, there is a possibility of more foreign funds investing in our market that would lead to further compression on rates. Stay tuned for this update in our annual year end survey next quarter.

Every quarter, senior Altus Group professionals reach out to over 300 investors, managers, owners, lenders, analysts and other market stakeholders to survey their opinion on value trends and perspectives. Conducted with the same benchmark properties for over 10 years, the survey provides valuable insights on valuation parameters for 32 asset classes in Canada’s 8 largest markets. For more detailed survey results, please contact support@altusinsite.com.
 

Desjardins will purchase Staples Canada's outstanding receivables and client accounts that are currently being managed by Citi Cards Canada. Desjardins will also make its Accord D in-store financing product available in all Staples stores. Staples is Canada's largest office products retailer with a network of 330 outlets across the country including 70 stores operating under the Bureau en Gros banner in Quebec.

"We're pleased with this agreement, because it provides us with an opportunity to further strengthen our position as an expert in payment and financing solutions across the country," said André Chatelain, Vice-President and General Manager of Desjardins Card Services. "We thank the Staples management for the confidence and trust they have shown us."

"We are very happy about this partnership and confident Desjardins can help us provide our customers with innovative financial options and solutions," said Mary Sagat, VP Finance and CFO for Staples Canada. "We look forward to launching this service in 2012."
 

Business owners in Saskatchewan and Alberta are the most optimistic, with index levels just under 74. Ontario (62.0) and Quebec (60.3) is slightly below the national average, but the weakest optimism is found in Nova Scotia (58.4) and New Brunswick (59.6).
Optimism in the manufacturing, wholesale and retail sectors remains close to the overall average, however, optimism among those in the transportation and financial services sectors have fallen off significantly. Construction and hospitality also remain weak, while optimism in the healthcare and professional services sectors remain above average.
"Regardless, more business owners are saying their recent performance has been better than at any time since the recession began. After falling back significantly in August and September, amid economic uncertainty, business owners seem to have restored at least some of their capital spending plans," remarked Mallett adding "40 per cent of business owners describe their state of business to be in 'good' shape, almost three-times the 13 per cent who say it is poor."

Customer demand continues to be the most commonly cited constraint on business performance (41 per cent), followed by shortages of suitably skilled labour (37 per cent) and management skills and time constraints (31 per cent). More than two-thirds of respondents stated that fuel and energy costs are seen as the most problematic business input costs, given their variability.

"Taxes and the cost of complying with regulations are a problem for 58 per cent of business owners, while wage levels, banking fees and insurance costs are pain points for one business in two," concluded Mallett.
Measured on a scale between 0 and 100,  an index level above 50 means owners expecting their businesses' performance to be stronger in the next year outnumber those expecting weaker performance. According to past results, index levels normally range between 65 and 75 when the economy is growing.  The October 2011 findings are based on 1,003 responses, collected from a stratified random sample of CFIB members, to a controlled-access web survey. Findings are statistically accurate to +/- 3.1 per cent 19 times in 20.
 

A premier fashion destination on the South Shore of Montreal, shopping at Mail Champlain is more enticing than ever. Following a major redevelopment investment of $40 million, Mail Champlain is proud to unveil its new state-of-the art look and feel, as well as its strengthened retail offering.

''These improvements represent a new era for Mail Champlain and confirm our leadership position in the market,'' states Gilles Deschênes, General Manager of the property. ''Mail Champlain has always been a fashion destination where customer service is key. The combination of these strengths has brought the centre to a new level," he added. 

In order to provide an optimal shopping experience, Mail Champlain's interior was completely refreshed and now offers shoppers an ambience that exudes warmth and conviviality. The common areas, now bathed in natural lighting, offer a refined and contemporary feel. Comfortable Internet stations offer free access to the mall's WI-FI network while the new rest areas are welcoming and inviting. The recently-expanded food court boasts an inspiring and elegant design, completely transforming this area of the mall.

"Mail Champlain is a core asset in Ivanhoé Cambridge's portfolio, as is Rockland in Town of Mont Royal and Place Ste-Foy in Quebec City.  Situated in a strategic location, the centre enjoys a high level of awareness in its market," adds Jean Laramée, Principal Vice-President, Eastern Portfolio, North America, Ivanhoé Cambridge. "The new Mail Champlain is an excellence example of the company's expertise and features three key elements that allow us to improve and sustain our shopping centres: the ambience, an appealing retail offering, and unique experiences that allow the centre to connect with the values of its clientele."

Refined and more user-friendly, Mail Champlain is where unique experiences can be had. Recently, Mail Champlain hosted an exhibition on the history of the South Shore and another one on floral fashion. The shopping centre will also present Style Icons - a look at the great influences on fashion. All these improvements, combined with an attractive retail offering, allow clients to enjoy a renewed shopping experience that redefines the New Mail Champlain. The centre is now home to brand names such as Browns, BCBG, Simon Chang and Guess, in addition to H&M's recently-expanded store, Zara, and StyleXchange, for a total of 150 sought-after retailers.
 

Revitalization of 1420 Mont-Royal in Outremont: Another important milestone is reached
Bird's eye view of Château Maplewood at the foot of Mount Royal

Another important milestone has been reached for the revitalization of the building located at 1420, Mont-Royal in Outremont.  Quebec's Minister of Culture, Communications and Women's Affairs has just authorized the realization of the project following notice from the Commission des biens culturels du Québec.
The 1420 Mont-Royal, now known as "Château Maplewood", is located in the historical and natural district of Mount Royal. Due to its location, an authorization must be obtained from the Minister before making any modification to a building inside the boundaries of the district.

"This authorization confirms once again the quality of our project and its harmonious integration into this exceptional area that is Mount Royal" said Mr. André Fortin, Catania's President and General Manager.
Château Maplewood is a unique residential project that offers 142 prestigious condo units located inside a fully renovated 1920's building designed to perfectly blend into the surrounding nature and to preserve and integrate the spirit of the past within the new building. A sales office is located at 1075 Laurier West in Outremont. An on-site showcase condo, at 1420 Mont-Royal in Outremont, is opened to interested buyers.
 

MTY completes acquisition of Mr. Submarine Limited
MTY Food Group Inc. announced that pursuant to the binding agreement announced on August 18, 2011, its wholly-owned subsidiary MTY Tiki Ming Enterprises Inc. has completed the acquisition of Mr. Submarine Limited and Mr. Submarine Realty Limited ("Mr. Sub"). Total consideration of $23 million is to be paid from MTY's cash on hand.

Mr. Sub (www.mrsub.ca) has delivered fresh quality submarine sandwiches in Canada since 1968 with a focus on providing value for its customers. "By acquiring Mr. Sub, MTY is adding a well-known quick-service brand that generations of Canadians have enjoyed for over 40 years. The addition of Mr. Sub provides tremendous strategic possibilities for MTY by further diversifying MTY's brand portfolio and by considerably increasing our presence on the street", said Stanley Ma, Chairman, President and CEO of MTY.

At closing, there are 338 Mr. Sub outlets in operations, all of which are either franchised or under operating agreements. The transaction will bring MTY's annualized system sales to approx $650 million and its network to 2,231 outlets in Canada, and throughout the Middle East and North African (MENA) regions. This excludes the anticipated acquisition of Koryo Korean BBQ.

In the weeks following the transaction, Mr. Sub's team will be relocated to MTY's Ontario office in Richmond Hill. Mr. Ken Monteith, Sr. Vice-President of Country Style, will expand his role and additionally take the lead for Mr. Sub, along with current Mr. Sub senior management, Mr. Michael Ford and Mr. Kurt Newman.

The RBC PMI found that Canadian manufacturing business conditions improved further in October, with firms generally attributing higher output and new orders to greater demand and new client wins. Nevertheless, the respective rates of growth eased since September, as global economic conditions weakened. Notably, new export orders fell modestly during the latest survey period.
The headline RBC PMI - a composite indicator designed to provide a single-figure snapshot of the health of the manufacturing sector - posted 53.7 in October, which is down from 55.0 in September and marks a three-month low. Index readings above 50.0 signal expansion from the previous month, readings below 50.0 indicate contraction.

"The Canadian manufacturing sector has been weathering external macro events and market conditions reasonably well, and we expect to see modest economic growth for the remainder of the year," said Craig Wright, senior vice-president and chief economist, RBC. "It is encouraging to see the RBC PMI holding its ground, particularly in light of softening manufacturing conditions in other corners of the globe."

In addition to the headline RBC PMI, the survey also tracks changes in output, new orders, employment, inventories, prices and supplier delivery times.
Key findings from the October survey include:
•    Incoming new work and production both increase solidly, albeit at a weaker pace
•    Rate of job creation eases since September
•    Inflationary pressures weaken further

Firms generally linked the improvement in business conditions to new order growth in October. Incoming new work rose solidly, with almost 30 per cent of monitored companies registering larger new order volumes compared with September. Anecdotal evidence provided by panellists largely attributed the increase to greater demand and new client wins. Nonetheless, the rate of growth was the weakest since July, as new export orders fell modestly in October.

Canadian manufacturers raised production during the latest survey period, as has been the case since the start of data collection in October 2010. Output increased robustly, but at a slower pace than in September. Backlogs of work fell modestly in October, meanwhile. Stocks of finished goods were reduced further, in some cases to meet higher new order requirements.

Reflective of higher output levels, the amount of inputs purchased in October increased. Surveyed firms also depleted input inventories for the second successive month, with a number of respondents citing leaner stock holding policies. Subsequently, suppliers' delivery times lengthened further in October, as input demand strengthened. That said, the latest increase in lead times was the weakest in the 13-month series history.
Employment in Canada's manufacturing sector rose further during the latest survey period. Approximately 22 per cent of survey respondents raised staffing levels, while 14 per cent reduced headcounts. Overall, the rate of job creation was solid, but slower than that registered in September.

Higher input costs were recorded by Canadian manufacturing companies in October. Fuel and raw materials such as metals were particularly mentioned as having increased in price. Although the rate of input price inflation remained solid, it continued to ease sharply from April's peak. Firms generally passed on greater cost burdens to clients by raising their selling prices. Output charges rose only modestly, however.

Regional highlights include:
•    Regional PMI data signalled improvement in manufacturing business conditions across all four broad Canadian regions in October. Alberta & British Columbia continued to lead the latest expansion.
•    Moreover, Alberta & British Columbia registered the fastest rate of new order growth.
•    Three out of the four broad regions reported job creation in October. The only exception was Quebec.
•    The fastest rate of input price inflation was recorded in Alberta & British Columbia.

"The Canadian manufacturing sector continued to grow solidly in October, albeit at a weaker pace" said Cheryl Paradowski, President and Chief Executive Officer, PMAC. "The volume of new work intakes received by Canadian manufacturers rose at the slowest rate in three months, with a fall in new export orders being a key contributor. Although both output and employment growth also eased during October, the rate of input price inflation slowed further from April's peak, thus alleviating some pressure on manufacturers' cost burdens."

"The stimulus program of the past two years has been very helpful," said John Gamble, President of ACEC. "However, it officially came to an end yesterday, and the nature and constant use of infrastructure dictates that a predictable, long-term approach be applied to its funding and development. It will also give Canada the double bottom line of increased competitiveness and enhanced quality of life."

Multiple studies conclude that infrastructure investment in Canada has significantly declined since the 1960s, making the commitment to a long-term plan both necessary and timely.
"This goal is consistent with the important objective of balanced budgets," continued Gamble. "Indeed, more efficient infrastructure will help improve the productivity and competitiveness of the Canadian economy. Our recommendations to the federal government are completely consistent with sound fiscal management. Allocating resources to renewed infrastructure across Canada is one of the very best investments the federal government can make for the long term prosperity of Canadians."

Previous federal budgets note that "Canada's quality of life and economic competitiveness depend in part on having reliable, efficient infrastructure." ACEC calls on all parties to continue their support for our nation's infrastructure and fulfill their election commitments to develop a long-term, predictable and sustainable strategy to fund its construction and renewal.
 

CANMARC reports strong growth in operating results in third quarter 2011 & President and CEO Appointed to the Board of Trustees

CANMARC Real Estate Investment Trust  reported strong growth in its financial and operating results for the third quarter of 2011.

The REIT also announced that Mr. James W. Beckerleg, President and Chief Executive Officer of the REIT, has been appointed to the Board of Trustees, effective November 2, 2011.  As founding CEO and leader of the management team, Mr. Beckerleg will sit as a related Trustee.

"We are pleased to have Jim Beckerleg join us on the Board of Trustees," said Karen A. Prentice, Chair of the Board of Trustees. "Mr. Beckerleg's appointment reaffirms the REIT's commitment to strong governance and strategic leadership in the real estate sector", declared Mrs. Prentice. "Jim brings to the Board a wide array of expertise with a depth of experience in real-estate corporate finance and acquisitions, having served as an executive and director of several public companies."

Financial Results

"Our third-quarter results reflect the full benefit of our acquisitions over the past year. The investment properties we acquired are accretive to the REIT'S net operating income, "said Jim Beckerleg, President and Chief Executive Officer. "During the quarter, we became CANMARC, a brand that reflects our mission of building and operating a Canadian commercial real estate portfolio with landmark and other quality properties.  We continue to build an active pipeline of potential acquisitions and look forward to adding properties in both the office and retail sectors."


* : A decrease in the AFFO payout ratio (distributions per Unit and Class B LP Unit divided by diluted AFFO per unit) compared to the previous year represents a positive variance.


Highlights

    NOI was $26.9 million for the third quarter, a 37.3% increase compared to the same period in 2010. The increase is mainly due to the impact of several acquisitions made during the past year.  The acquisitions increased the REIT's commercial gross leasable area (GLA) by 21.4% from approximately 6.6 million square feet at July 1, 2010 to approximately 8.0 million square feet at September 30, 2011.

    The AFFO payout ratio of 92.2% represents a 6.6% improvement over the 98.8% payout ratio recorded in the second quarter of 2011. The improvement is due to the acquisitions completed in the second quarter of 2011, which contributed fully to the REIT's operating results during the third quarter this year.

    On September 13, 2011, the REIT closed a bought-deal equity financing for net proceeds of approximately $36.6 million.  The net proceeds were used to repay debt, fund acquisitions and for general purposes of the REIT. Units were sold at a price of $11.50 per Unit, resulting in a total of 3,325,000 Units being issued. The proceeds from the equity issue had a minimal impact on the REIT's operating results in the quarter.

    Occupancy rates for the REIT's 83 commercial income properties were relatively stable during the third quarter, increasing slightly to 95.9% at September 30, 2011 from 95.5% at June 30, 2011. However, there is a 1% increase in occupancy rate at September 30, 2011 compared to the 94.9% registered at September 30, 2010.

    The average lease term to maturity on the REIT's commercial properties was approximately 8.6 years at September 30, 2011, consistent with the previous quarter.

    Debt as a percentage of gross book value is at 49.5%, which remains below the REIT's target range of 55% to 60%.

    On August 2, 2011, the REIT announced that it had discontinued the position of Executive Chairman. The Board of Trustees further announced that Karen A. Prentice had been appointed as the first non-executive Chair of the REIT.

    On September 27, 2011 the REIT announced that it had changed its name to CANMARC Real Estate Investment Trust.

Subsequent events

    On October 5, 2011, the REIT closed a transaction to acquire a 100 percent interest in a portfolio of 29 neighborhood shopping centres, of which 24 are leased and anchored by the Jean Coutu Group, for a gross purchase price of $114.9 million excluding closing and transaction costs.

    On October 18, 2011, the REIT closed a transaction to sell its non-strategic Atlantic-Provinces-based multi- family residential portfolio for approximately $65 million.

Conference Call

The REIT's management team will hold a conference call today at 11 a.m. (EDT) to discuss the results for the third quarter. To access the conference call, please call 1-800-704-5375. A taped replay of the call will be available until December 3, 2011 by dialling 1-416-626-4100 or 1-800-558-5253 and entering the playback code 21544038. An audio replay of the conference call will also be available in podcast format in the Investors section of the REIT's website at www.canmarc.ca.
  

BTB Real Estate Investment Trust  announced that, after the conclusion of the due diligence process, it has now closed the acquisition of one retail and two industrial properties in the City of Terrebonne for a total purchase price of $14.4 M excluding closing costs. With the conclusion of this acquisition, BTB has now closed over $326 M worth of properties representing over 3.1 M square feet of leasable area
2175 and 2205 to 2225 Des Entreprises Boulevard, Terrebonne, Québec
These two industrial properties of respectively 60,000 and 154,000 square feet of leasable area are fully-leased for 10 year terms. They are strategically located on one of Montreal´s major highways, 25 kilometers from the Port of Montréal and 40 kilometers from the Pierre-Elliott Trudeau international airport.  These properties generate stable revenues and their tenant is the most important manufacturer of windows and door in the whole of Quebec.

5781 Laurier Boulevard, Terrebonne, Québec
BTB acquired a 50% participation in this commercial property that has a total leasable area of 17,114 square feet.  This fully-leased property harbours a Shoppers/Pharmaprix pharmacy.
As part of this transaction, BTB assumed a first ranking mortgage loan in the amount of $1.2 M for a remaining term of 7 years, bearing interest at an annual rate of 5.68%, with HSBC.
 

Construction of the new office tower is scheduled to commence in early 2012, and SNC-Lavalin plans to take occupancy of six full floors, totalling approximately 100,000 s.f. of office space, in the fall of 2015.
"bcIMC already has a good landlord and tenant relationship with SNC-Lavalin in other locations, and we are very pleased to be able to accommodate its expansion and relocation into our new 745 Thurlow project", said Chuck Swanson, Vice President, Real Estate, bcIMC.

Located at the corner of Thurlow and Alberni Streets between the well-established West Georgia business and Robson Street retail corridors, 745 Thurlow is surrounded by convenient public transit, food, hotel, retail and other service amenities. With its sustainable design, large efficient floor plates and flexible mechanical systems, the building can accommodate a variety of large and small businesses while reducing tenant occupancy costs.

"SNC-Lavalin is very excited to be relocating its Vancouver offices to 745 Thurlow", said Jim Burke, Executive Vice President, SNC-Lavalin. "Not only will this enable us to expand into more efficient space and help us achieve our commitment to sustainability, it will also raise our corporate profile in downtown Vancouver."

The project, which will accommodate approximately 2,500 occupants, will include 365,000 s.f. of office space and 35,000 s.f. of retail space, and will be completed in the spring of 2015. Office floor plates will range from 15,000 s.f. to 21,000 s.f. The progressive design, developed by Architects Musson Cattell Mackey Partnership, allows for the building floor plates to "grow" outward with each elevation above the third floor.

"Coupled with previous lease commitments, this new lease with SNC-Lavalin brings the total office space pre-leased in the building to 50%", said Tony Astles, Executive Vice President, Bentall Kennedy, the developer of the project. "It is gratifying that a progressive firm like SNC-Lavalin, with exacting standards for its employment space, has chosen 745 Thurlow to satisfy its future requirements."

To learn more about 745 Thurlow, please visit: www.745thurlow.com.

The 2011 survey yielded both encouraging and alarming results. At the high end of the spectrum, Vancouver, Toronto, and Montreal continue to post the highest commercial to residential tax ratios which are well in excess of 4:1. While REALpac remains concerned about these unfair ratios, it was pleased to see that for the fourth consecutive year, Vancouver and Toronto continue to trend downwards with significant reductions, and applauds the cities for working towards a more favourable business environment. In contrast, Montreal continues to trend upwards at an alarming rate that may well put them on par with Toronto and Vancouver as early as next year, and will surpass them shortly thereafter if the current ratio increases continue. On the opposite end of the spectrum, REALpac commends the cities of Winnipeg and Edmonton which continue to promote favourable business environments with the three lowest commercial to residential tax ratios amongst major Canadian municipalities.

On an absolute tax basis, Calgary, Edmonton, and Vancouver populate the low end of the spectrum with the lowest estimated property taxes per $1,000 of commercial assessment while Halifax, Montreal, Toronto, and Ottawa have the highest. From a residential assessment standpoint, Vancouver, Calgary, and Edmonton yield the lowest property taxes per $1,000 of residential assessment while Winnipeg, Halifax, and Ottawa yield the highest.

REALpac is committed to working with municipalities across Canada on achieving tax fairness. The continued reduction of excessive property tax burdens on commercial and industrial tenants and landlords will make cities more competitive and promote jobs and investment, resulting in increases to the property assessment base and subsequently generating more stable and sustainable revenue.

The "2011 Property Tax Rate Analysis" may be downloaded at the REALpac website at http://realpac.ca/property-tax/.

“Regardless of their size or scale, successful brownfield projects are a truly collaborative effort, requiring commitment, persistence and an ability to overcome complex challenges,” said Glenn Miller, Vice President, Education and Research with the CUI. “The extraordinary range of projects and programs represented by the finalists are a tribute to the high quality of design and technical expertise across the country. Selecting the winners gets harder every year.”

The CUI Brownie Award for best overall project went to The Tannery District in Kitchener, Ontario, which turned a vacant derelict property into a state of the art, environmentally friendly building envelope that has attracted new commercial tenants, and which has also stimulated investment and renovation in surrounding sites.
Awards were also presented to the East Village Re-Development in Calgary, Alberta for Best Large Scale Project; and to the Davie Village Community Garden in Vancouver, BC for Best Small Scale Project.  The award for Brownfielder of the Year went to Dave Harper from Kilmer Brownfield Equity Fund L.P for his  leadership and advocacy to advance brownfield redevelopment across Canada.

Category-specific awards were awarded to the following projects:
Category 1 – Legislation, Policy and Program Development 
Streamlined Risk Assessment Approved Model – Toronto, ON
Category 2  – Sustainable Remediation Technologies and Technological Innovation
Westminster Pier Park – New Westminster, BC
Category 3 – Financing, Risk Management and Partnerships
Durham Region Courthouse – Oshawa, ON
Category 4 – Excellence in Project Development: Building Scale
Corus Quay – Toronto, ON
Category 5 – Excellence in Project Development: Neighbourhood Scale
The West Don Lands & Pan/Parapan Am Athletes’ Village Project – Toronto, ON
Category 6 – Communications, Marketing and Public Engagement
The BLOOM 2011 Brownfield Series: Practical Workshops for Redevelopment in Canada - Edmonton, Hamilton, Kingston, Montreal, North Bay, Waterloo Region
Category 7 – Individual Achievement
David Harper - Kilmer Brownfield Equity Fund L.P.

For more details, including contact information for these projects, visit   https://canurb.org/awards

 

Premier Jean Charest and Shriners Hospitals for Children® leadership located in Montreal have proceeded to the grounbreaking for the new Shriners Hospital for Children on the Glen Campus adjacent to the Montreal Children's Hospital (MCH) of the McGill University Health Centre (MUHC). Also present were Health Minister Yves Bolduc, M.D., the Honourable Arthur T. Porter, directeur général et chef de la direction du CUSM, Michael Severe, President of the Board of Directors of Shriners International and Chairman of the Board of Shriners Hospitals for Children, Douglas Maxwell, president and CEO of Shriners Hospitals for Children and many other dignitaries. Patient representatives Natalie Cinman and Luca Patuelli participated in the official groundbreaking and the national anthems were sung by hospital patient Jérémy Gabriel.

M. Raoul Frevel, Chairman of the Building & Equipment Committee of the National Board: "This new space more of 207 000 sq. ft. will allow the implementation of care and rehabilitation facilities at the cutting edge of technology that will include new services such as a movement analysis laboratory for clinical treatments and research and a surgical skills laboratory and education centre to continue to improve our teaching mandate as well as the care we offer to meet the needs of current and future patients."

Since the announcement of the construction in 2010, the architectural firm of André Ibghy architects was retained and, guided by a Construction Committee composed of representatives of the head office and the Montreal hospital, has developed building plans which integrate high-technology and the family-centered care approach. Patients and families who arrive at the front entrance drop-off, will be protected from the elements by a signature glass marquise. The Shriners hospital will be linked to the Montreal Childrens Hospital on several floors, with a view to operational efficiencies and ease of access for patients and families. The environement will be bright and welcoming to children.The six floor building punctuates the west end of the MUHC Glen Campus with an exclamation mark.

"The extraordinary goundswell of support that we have experience since 2005 to keep the Shriners Hospitals for children in Montreal, has truly come to fruition today and we can now enjoy the fruits of our labour. Imagine what Montreal will become in the coming years: The CHUM and the MUHC will welcome their first patients, The CHU Sainte-Justine and the Jewish General Hospital will expand and the new Shriners Hospitals for Children- Canada will be completed! It is without a doubt that Montreal will be considered a true world leader in healthcare". expressed the mayor of Montreal, Gerald Tremblay.

Douglas Maxwell, President and CEO of Shriners Hospitals for Children emphasized: "the transfer of property has been signed, and if everything goes according to schedule, construction will begin in the spring of 2013 and the completion of the work and the move will take place in the summer 2015. Construction costs are estimated at $ 127 million."

Robert Drummond, M.D., Chairman of the Board of Governors, Shriners Hospitals for children - Canada announced: "We expect that this new facility with the technology and ultramodern facilities will allow us to continue to recruit some of the best pediatric surgeons, orthopedists, researchers and health care professionals to continue to provide the best possible care to children in Quebec, the Canada and around the world." We want to make this hospital a true model of excellence"

"A project of this scale cannot be undertaken without collaboration of our partners, I would like to take this opportunity to thank the Government of Quebec, the McGill Uthe niversity Health McGill and the Montreal Children's Hospital, SNC Lavalin and our architect, André Ibghy for work already done and to come" concluded Michael G. Severe, Chairman of the Board of Directors of Shriners International.

 

OCPM public consultation on proposed height and density changes for downtown areas

The Office de consultation publique de Montréal announces that it will hold public consultations on draft amendments to the Montréal Master Plan Complementary Document providing for approximately 40 height and density changes in a number of downtown areas.

This task was undertaken by the borough of Ville-Marie in anticipation of the revision of the Master Plan to be carried out in 2013, and after having developed planning tools for the east and west sectors of the borough. The borough's objective is to support dynamic real estate development downtown, notably in terms of residential properties. With the proposed revision, the buildable potential of the central business district and surrounding areas is expected to reach almost 13,500 housing units and 750,000 square metres of office space.

Reductions or increases in construction height and density are planned for a variety of sites. In all, 33 height zones and nine density zones will be updated in the east, west and south ends of the central business district, and on the southern slope of Mount Royal. The amendments could have a major impact on the downtown skyline for many years to come.

The OCPM was therefore given the mandate to hold a public consultation on the proposed amendments. Two information sessions will be held as follows:

November 1, 7:00 p.m.
Cathédrale Marie-Reine-du-Monde
1110 Mansfield Street
Bonaventure Metro Station

November 7, 7:00 p.m.
Centre Saint-Pierre
1212 Panet Street
Beaudry Metro Station

The presentation of briefs will take place on November 30, in the afternoon and evening, at the Cathédrale Marie-Reine-du-Monde.

All available information on the project may be obtained at the offices of the OCPM, 1550 Metcalfe Street, Suite 1414, and at the Direction du greffe at City Hall, 275 Notre-Dame Street East. The documentation is also available on the Office Web site, at www.ocpm.qc.ca.
 

The Sun Life Building: 2011-2012 Outstanding Building of the Year, Historical category

The Sun Life Building has garnered the prestigious BOMA (Building Owner and Manager Association) award, thereby becoming the Outstanding Building of the Year for 2011-2012. Presented by the Building Owner and Manager Association of Canada, this recognition of distinction, which represents the top honour in the commercial real estate sector in Canada, was presented at the national BOMEX® Conference that was held in St. John's, Newfoundland last week.

"It is with great pleasure that we accept this distinction," declared Mario Bédard, Senior Vice-President for Québec and the Maritimes at Bentall Kennedy, which is the building's management company. The Sun Life Building was also recognized in May when it was presented with the Building of the Year Award in Québec in the Historical Building category. "We are very proud to accept this prestigious award, presented at the national level, which recognizes the magnificence of this heritage building."

Erected between the years 1914 and 1933 in a neoclassic style, the Sun Life Building represents a harmonious blend of solidity and elegance that makes it one of the most prestigious addresses in Montréal. It provides its tenants with common areas filled with rare splendour and technologically advanced facilities.
"The Sun Life Building is part of the DNA of Montréal," explained Isabelle Hudon, President of Sun Life Financial for Québec. "It is impossible to separate the silhouette of this architectural gem from the landscape of our city. Working from inside this monument with its 1600 employees, the Sun Life Financial team for Québec makes decisions related to all of our activities in Québec."

Certified BOMA BESt (Building Environmental Standards) Level 3, the Sun Life Building is managed with a particular focus on energy efficiency and environmental performance, and boasts superior results in these areas. It also recently qualified for Hydro-Québec's Energy Wise Program, and is now part of the network of major corporations that are recognized for their leadership and outstanding performance in terms of energy efficiency.

The Sun Life Building is jointly owned by Sun Life Financial and SITQ. Chartered in 1865, Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. SITQ has perpetuated a tradition of excellence since its creation by the Caisse de dépôt et placement du Québec in 1984, and is a leader in the real estate sectors in North America and Western Europe.

CANMARC: "CMQ.UN" is the new trading symbol on the TSX
CANMARC Real Estate Investment Trust ("CANMARC" or the "REIT") Units are now trading under the symbol "CMQ.UN" on the Toronto Stock Exchange, effective at the opening of business today. CANMARC is the new name of the REIT, formerly known as Homburg Canada Real Estate Investment Trust.

"The new name - CANMARC - speaks to how our REIT has evolved since we completed our initial public offering in May 2010.  It is a further confident step forward," said Jim Beckerleg, President and Chief Executive Officer.  "CANMARC reflects and affirms our independence, and expresses our mission of building a national Canadian real estate portfolio with landmark and other quality properties in the office and retail segments of the commercial real estate market."

"All of us at CANMARC look forward to continuing to build our relationships and our presence in real estate and financial communities across Canada," concluded Mr. Beckerleg.
 

 

Manulife Real Estate Funds acquired 5035-5045 South Service Road, a two-building, 159,237-square-foot, Class-A office complex in Burlington, Ontario in a deal that closed October 11, 2011. The property was purchased for Manulife Canadian Property Portfolio, a core, open-end real estate investment fund that invests in Canadian commercial real estate assets.

A Walmart at North Sydney Mall, North Sydney, NS

Robert Wiseman, President of Econo-Malls Management Corporation, is pleased to announce that the current 65,000 sq.ft. Zellers store in the North Sydney Mall in North Sydney, Nova Scotia will be converted into a Walmart in 2012. This store is one of 39 stores which Walmart Canada announced on September 23 that it acquired from Target Canada.  The North Sydney Mall is a 180,000 sq.ft. enclosed mall also anchored by a recently renovated Sobeys. Some space remains available to join retailers including Reitmans, Bargain Shop, Dollarama, Easyhome, Schwartz Furniture, Bentley, DFX, The Cash Store and The Source. The centre also houses an 11,000 sq. ft. call centre. There are currently units available ranging from 500 sq. ft. to 5,600 sq. ft. Ideal uses include restaurants, fashion, shoes and children’s clothing. For additional leasing information please contact Howard Wiseman at 514-938-1345 or at howard@econo-malls.com
 

 

We are delighted to have been able to acquire this high quality property in partnership with a major institutional partner,"said Kevin Leon, Crestpoint's President and CEO. "Toronto's entertainment district is experiencing significant new residential, office and hotel development, creating an ideal work/life atmosphere that is attracting many companies and young professionals to the area."

In the midst of turbulent capital markets, we believe Canadian private equity commercial real estate represents an attractive investment opportunity, continued Leon. "Completion of this deal further demonstrates our ability to identify, acquire and manage high quality commercial real estate investments on behalf of institutional and high net-worth clients."
 

Send him a Note!

Moray Tawse
Vice President, Mortgage Investments
E-Mail: moray.tawse@firstnational.ca
Telephone: 416.593.2910

Tawse wines were awarded a total of 24 medals in the competition, including a record-setting six gold medals. The winery was also awarded seven silver and 11 bronze medals.

The Canadian Wine Awards have been held annually since 2000 by Wine Access Magazine, and involve stringent, international-calibre competition with blind tasting by wine experts.

Tawse Winery is located on the bench of the Niagara Escarpment along Ontario's popular Wine Route. A certified organic and biodynamic wine producer, Tawse uses no pesticides, fungicides or chemical fertilizers. Horse-drawn equipment is used and farm animals roam the Tawse vineyards, eating weeds and excess vine foliage as well as providing natural fertilizer.

"We're very excited to be named Canada's Winery of the Year again in 2011 - for us it's like winning the 'best picture' Oscar two years in a row," says Moray Tawse, Toronto financier and winery owner. "Our philosophy is that great wine begins in the vineyard and I'm indebted to our winemaker Paul Pender, and his team, who are as involved in viticulture as they are in making wine."

Mr. Tawse says the unique clay, limestone and shale soil of the escarpment bench also has a starring role in this win. "The soil here is complex and varies from vineyard to vineyard. It allows for wines of great depth, richness and character."

The six gold medals won by Tawse were for the 2009 Estate Chardonnay, 2009 Sketches of Niagara Riesling, 2010 Riesling, 2009 Robyn's Block Chardonnay, 2009 Sketches of Niagara Chardonnay and 2009 Members Select Chardonnay. For a full list of medal winners and other background information, go to www.tawsewinery.ca and click on Winery of the Year.

The residential portion of the portfolio includes a total of 402 rental units located in prime Midtown and Upper East Side submarkets.  The SL Green/Stonehenge venture plans to significantly upgrade a selection of units and building amenities in an effort to maximize value.  Stonehenge, which currently owns and manages over 2,560 apartment units in New York, will bring to bear its specific expertise to the venture and will be responsible for day-to-day management and marketing of the multifamily assets along with the execution of the renovation/upgrade program.  

The transaction is the latest in a series of significant investments by SL Green that have involved premier retail properties and locations. Previous notable examples have included the recently-concluded 1552-1560 Broadway transaction, the American Eagle and Aeropostale flagships in Times Square, and the recently acquired 747 Madison Avenue.
The full portfolio being acquired in the transaction announced today includes:
•    724 Fifth Avenue, a 12-story building that currently includes the Prada retail space and several floors occupied by gallery tenants.

•    Interests in 752 Madison Avenue, a four-story retail building completely occupied by Armani under a sub-lease arrangement that expires in 2025.
•    Interests in 19-21 East 65th Street, a pair of mixed-use properties adjacent to 752 Madison Avenue.  The combined properties include 9,000 square feet of retail, office, and gallery space, along with 17 multifamily units.
•    762 Madison Avenue, a five-story building located between 65th and 66th streets and also adjacent to 752 Madison Avenue.  The asset includes 6,000 square feet of office, retail and gallery space, with the lease on the ground floor retail space expiring in 2013.
•    44 West 55th Street, a five-story commercial building located between Fifth and Sixth Avenues.  With two floors currently vacant and leases on two additional floors scheduled to expire in 2012, the well-located midtown building offers a significant repositioning opportunity.  
•    400 East 57th Street, a 260-unit multifamily building located on the southeast corner of 57th Street and First Avenue.  While already featuring attractive common areas, the SL Green/Stonehenge venture plans to implement a strategic capital plan to upgrade select building amenities. In addition the venture will upgrade the ground floor retail space as needed in order to capture market-level rents from credit tenants.
•    400 East 58th Street, also located along First Avenue.  The building features 125 multifamily units and 4,000 square feet of ground floor retail space, with the latter currently leased at below-market rents to non-credit tenants.

Andrew Mathias, President of SL Green, commented "This is an exciting opportunistic investment for SL Green, which already has an outstanding track record in acquiring and repositioning New York City office and retail properties.   We also are excited about making our first significant equity investment in the multifamily area, which helps to diversify our portfolio further while still maintaining our New York City focus."
Marc Holliday, Chief Executive Officer of SL Green, added, "In joining forces with Stonehenge Partners, we have brought together two companies with complementary strengths.  Along with our property renovation and repositioning know-how, we have considerable experience in underwriting residential transactions through our structured finance program.  Stonehenge is one of the city's best multifamily property operators.  We believe the residential portion of this venture will produce solid returns."

Ofer Yardeni, managing partner and co-founder of Stonehenge Partners, said, "The Stonehenge footprint in New York City continues to expand and this venture with one of New York City's pre-eminent real estate companies further enhances our presence and brand.  We look forward to collaborating with the SL Green team in repositioning these properties and bringing them to their full potential value." 
For more information about Stonehenge Partners please visit www.stonehengenyc.com

Succeeding Cheesewright will be Shelley Broader who will assume the position of president and CEO of Walmart Canada effective immediately. Broader joined Walmart Canada as chief merchandising officer in December 2010 following more than 20 years of leadership experience across the North American retail industry.

Prior to Walmart, Broader was president and COO of Michael's and was responsible for the chain's North American retail operations and more than 1,000 stores in the United States and Canada. For more than 17 years Broader held leadership roles with Hannaford Bros. in the United States and was president and COO of the company's Kash n' Karry chain and president and CEO of the company's Sweetbay Supermarkets chain. Broader began her career in the investment-banking sector advising clients in the American retail industry.
"Walmart Canada is poised for continued growth as Canada's price leader and one-stop shopping destination," said Broader. "I look forward to working with our extremely talented executive team and our associates to exceed customer expectations in every region of Canada."
Cheesewright, most recently president and CEO of Walmart Canada, joined Asda, Walmart's business in the United Kingdom, in 1999. While at Asda, he held a variety of key leadership positions in operations, merchandising, logistics, strategy and format development. Prior to Asda, Cheesewright worked at Mars Confectionary.

"Walmart has a strong and successful presence in Canada, Sub-Saharan Africa and the United Kingdom," said Cheesewright. "I look forward to continuing this success and bringing our mission of saving people money so they can live better to even more families across the region." 

"Europe, the Middle East, Africa and Canada hold tremendous potential for our company, and we are excited to have David Cheesewright leading the team," said Doug McMillon, president and CEO, Walmart International. "We are equally excited to have a leader of Shelley Broader's calibre to lead Walmart Canada and our continued growth in the Canadian market." 

Walmart has more than 283,000 associates and 1,182 retail units in Canada, Sub-Saharan Africa and the United Kingdom.

"We are proud to be Canada's first publicly-traded real estate company to issue a GRI™-compliant CRS Report," stated Dori J. Segal, President and CEO of First Capital Realty.  "Living up to our social and environmental responsibilities makes good business sense and is consistent with the long-term strategy of our Company."

The Company has self-declared its report to be an Application Level B+.  This application level requires a company to report on at least 20 performance indicators, including one from each category: economic, environment, human rights, labour, society, and product responsibility.  Furthermore, it requires external assurance.  Accordingly, the Company has received independent assurance over selected quantitative performance indicators included in its CRS Report for the year ended December 31, 2010 from Pricewaterhouse Coopers LLP.

In May 2006, First Capital Realty became Canada's first shopping centre owner, developer and operator to commit to build all of its new projects to Leadership in Energy and Environmental Design® (LEED® standards).  As of December 31, 2010, 15 projects have been LEED® certified with another 55 projects under development, in construction, or awaiting LEED® certification.  The report also details a number of initiatives implemented during 2010 to reduce water and energy consumption, including two properties under development that will use geothermal energy for heating and cooling.

To obtain a copy of First Capital Realty's 2010 CRS report, please visit their website at www.firstcapitalrealty.ca.

 This afternoon, the Board of Trade of Metropolitan Montreal shared its views during public consultations on the urban development plan of the Communauté métropolitaine de Montréal (CMM): the Plan métropolitain d'aménagement et de développement (PMAD). "After 10 years of waiting, it is high time the metropolitan area have a development plan," said Michel Leblanc, President and CEO of the Board of Trade.

"Some find the plan too restrictive, others not enough," Mr. Leblanc said. "As far as the Board of Trade is concerned, the proposed plan is an effective compromise. In our 33-page brief, we make recommendations for improving the plan, but our message is clear: the Board of Trade supports the PMAD, its mission and its objectives. The PMAD finally provides a predictable environment for developers and establishes rules for the years to come."

"As an organization dedicated to economic development and good governance, the Board of Trade clearly supports the orientations of this plan," Mr. Leblanc said. "The PMAD will make it possible to increase the density of urban development and thereby reduce sprawl as well as infrastructure costs and the resulting productivity costs. The congestion on the city's road network alone is a compelling argument in favour of adopting the development plan. Plus, this document gives the metropolitan area a global vision, something the Board of Trade has long been calling for."

"The study of best practices in North America presented in our brief confirms that this plan is a solid foundation to providing a framework for the region's development for the next five years," Michel Leblanc said. "We also suggest some minor adjustments in our brief to help protect industrial spaces and improve the alignment between the CMM and the AMT."

"To succeed, the PMAD must be quickly adopted by the CMM, supplemented by an effective action plan and governed by independent monitoring mechanisms; it should receive the attention necessary from the Government of Québec and be flexible enough to achieve the full potential of economic development in the area in the years to come," Mr. Leblanc said. "Decision makers must take note of the extent of mobilization in the city in favour of this project."

The Board of Trade's complete brief is available in electronic format at: www.ccmm.qc.ca/memoire-pmad2011 (in French only)
 

"This is a major change that's going to affect companies across the country. There's a lot to think about, including registration requirements, tax exemptions, planning opportunities and general transitional rules for fleets and equipment," says Alison Pavlin, Associate Partner, Indirect Tax. "It's vital that businesses in all provinces educate themselves on the changes sooner rather than later."

Ernst & Young says companies must turn their attention to the issue now, and ask how this changeover will affect operations, systems, customers, budgets and staff. It's also beneficial for companies to advise the BC government on what administrative improvements can be made to the PST.

"This a Canadian issue, not a BC issue," Pavlin says. "Companies in any province that do business in BC must make changes now if they want to ensure a seamless transition." Ernst & Young spokespeople are available to explain this tax transition, and discuss the specific changes required of companies in all provinces.

 

CANMARC begins immediately to put the name change into effect at all of its locations and business operations, and in its external and internal communications.

CANMARC (www.canmarcreit.com) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Quebec. Managed internally, CANMARC owns a portfolio of Canadian income-producing commercial properties, consisting of retail and office properties with certain industrial properties. In total, CANMARC properties comprise approximately 8 million square feet of commercial gross leasable area and 1725 multi-family residential units located in Quebec, Atlantic Canada, Western Canada and Ontario.
 

Urban development of Greater Montréal: Home Builders worried about negative effects of PMAD
 

"The Association provinciale des constructeurs d'habitations du Québec (APCHQ) is very concerned about the consequences that the Plan métropolitain d'aménagement et développement (PMAD) may have on the residential construction market in Greater Montréal, particularly regarding access to property and to a decent home. This is why the APCHQ is calling on the Communauté métropolitaine de Montréal (CMM) to revise the parametres of the region's urban development plan. The major issues stemming from this plan must be studied in more detail and in collaboration with all stakeholders."

This was the message given to the media by Marc Savard, general manager of the Montréal Home Builders Association at a press briefing about the CMM's urban development plan (PMAD), which is supposed to be adopted in its final form by December 31.  The plan will be submitted to public hearings starting next week.

Based on a detailed analysis of the property stock still available in Greater Montréal, the APCHQ has concluded that if the PMAD were implemented in its current form, within 20 years, the quasi-totality of municipalities in Greater Montréal would have no building sites available for new residential construction. Land scarcity is already a major issue, with the MRCs of L'Assomption and Thérèse-de-Blainville already almost at the brink of a shortage.

The APCHQ believes that, despite a realistic effort of densification, roughly 110,000 households will have difficulties finding a home within the Greater Montréal region over the next two decades.  This represents about one-third of estimated demographic growth.

Single-family dwellings only for the wealthy?
"It is reasonable to state that the adoption of this Plan would mark the beginning of the end of construction of single-family dwellings in Greater Montréal, even if our study shows that the majority of households still want to live in this kind of home," said Mr. Savard. "In fact, only the wealthiest members of society would be able to purchase single-family homes."

Another perverse effect of the scarcity of land is the expansion of the phenomenon of urban sprawl, which is contrary to the PMAD's objectives. By restricting urban development in the CMM's outlying municipalities, buyers (young families in particular) will turn to municipalities beyond the CMM's borders, where the supply of available land is much greater.

The APCHQ's solution
"The solution proposed by the PMAD is a territory-wide freeze and a sudden densification of the current urban perimetre that doesn't take into consideration households' needs and the market's ability to conform to this new reality," said Mr. Savard. "In our view, there is a more realistic solution that takes the population's needs into greater consideration. This solution is linked to a better balance between densification and the addition of land for residential construction."

The APCHQ has examined and evaluated different options to better balance supply and demand, while keeping in mind objectives like environmental protection and sustainable development. In light of the APCHQ study's results, the indisputable solution resides in better land use in Greater Montréal, where land currently isn't being used in an optimal manner.

At present, close to 60% of the CMM's territory is zoned for agriculture. Of this area, the equivalent of 2½ times the Island of Montréal is currently unused land. "The APCHQ proposes the progressive use of just 5% of this vast unused land, in keeping with current development. When taking demographic trends into account, this would be sufficient to meet the need for urban space for the next 20 years," said Mr. Savard.
 

ARIDO Fellows George Yabu and Glenn Pushelberg, of the Toronto-based firm Yabu Pushelberg, received the coveted Project of the Year Award for their work on the iconic Paris department store, Printemps Haussman. With this project, the interior designers successfully captured the essence of luxury while creating a fresh, modern appeal, breathing new life into a classic retail landmark.

"ARIDO takes great pride in the international scope of Canadian Design," says ARIDO president Eliisa Petersen. "Printemps Haussman is a retail project like no other, pairing classic grandeur with modern simplicity. The project reaffirms Yabu Pushelberg's international acclaim." 

As in past years, the ARIDO Awards showcase a wide range of interior design talent: from retail to residential and from corporate to health-care, as well as major restoration projects. In addition to the Printemps Haussman project, the 2011 Awards of Excellence include the unique boardrooms and branding of Toronto's Corus Quay, the whimsical Ontario SPCA facility refurbishment and the ambitious James Cooper Mansion restoration project.

Two projects received additional recognition for their commitment to environmental sustainability. Sharon Martens of MartensGroup Licensed Interior Design Studio Ltd. and Sarah Faith Clark along with Sue Bennett of Bennett Design Associates Inc., were each recipients of an Award of Merit and an Award of Merit: Sustainable Design for their projects ARC Resources Ltd. and TD Financing Services (TDFS) respectively. Other multiple Award winners included Diego Burdi of Burdifilek, Dan Menchions and Keith Rushbrook of II by IV Design Associates Inc., as well as Fenwick Bonnell and David Hooper of Powell & Bonnell.

"The Association congratulates all Award recipients," affirms ARIDO president Eliisa Petersen. "Their commitment to design excellence strengthens ARIDO's position as the guardian of the highest standards for interior design in both the public and private realms."

Click here to view a full list of winners.

 

That initiative driven by the communication committee and one of its members Marie-Josée Frigon, president TraficDesign, was greatly applauded. Congratulations and long live this new image!

“These streets are really driving Canada’s office market,” said Becker.  “Despite exceeding the national rent average of $32.20 by 28 percent, there is never a shortage of tenants willing to rent space at one of these coveted addresses.”

Across the 40 markets analyzed in the study, rents on the most expensive streets exceed the market average by 49.8 percent.
 

North America’s Most Expensive Streets for Office Space**:

With over 25 years of experience in the real estate industry, Mr. Vincenti brings to Harden Group a wealth of knowledge, wisdom and experience in leasing, acquisition, development, asset management, and property management. Recently, Mr. Vincenti served as Vice-President - Asset Management and Executive Director for over ten years at Sandalwood Management Inc., a large Quebec Real-Estate company. Prior to Sandalwood Management Inc., Mr. Vincenti worked at Iberville Developments Inc. for 9 years and was principally responsible for a portfolio of over 2 million sq. ft.

Harden Group is a vertically integrated commercial real estate development company established since 1985. It specializes in all aspects of the real estate development process: development, construction, leasing, and property management.

Harden Group has developed over 1.5 million square feet of retail property comprising 10 shopping centers in Quebec and Ontario. Harden Group has assets of over $175 million dollars and during the next 3 years willbe investing overan additional $150 million dollars in new projects in the regions of Vaudreuil, Brossard, and Laval amongst others.

Domenic can be reached as of Monday October 3, 2011 at:

domenic@hardengroup.ca

450-424-1101 extension 27.

The event's chair, Brent Binions, President & CEO, Chartwell Seniors Housing REIT shares his comments on Real REIT 2011.

The graph of OCRs compares different types of assets in locations across Canada. In the second quarter of 2011 some compressions in OCRs and IRRs was seen across nearly all the major sectors. The replies in Q2 2011 indicate that, for OCRs, 44% of respondents believe rates have decreased, 53% believe rates have remained the same, and only 3% believe that rates have increased.

The “band width” of opinions of rates has remained the same for the most part, 5.0% to 8.0% for most regions. Outliers were observed within multi-tenant residential in the Vancouver market with the lowest rate indicated at 4.0%. This can be attributed to the continued increase in cost of home-ownership in that market, which results in increased demand for rental properties.

In contrast, highest rates were observed consistently among single tenant industrials in the eastern market of Montreal, Quebec City, and Halifax, which were above 8.0%. This is expected since the manufacturing sector in the eastern Provinces are still in recovery stage, especially in light of the strong Canadian dollar, increased trade barriers under the current US administration and sluggish economic recovery in the United States.

The retail sector exhibits a cautionary stance from investors surveyed this quarter after a continuous stream of strong demand and increased valuations in past quarters. This does not imply that this sector is headed for trouble or values are expected to fall, but rather that the rate of return on these choice assets has moderated due to slow growth in retail sales. It may also indicate that retail product has reached a plateau and that investors are currently seeking out higher returns in the Office, Multi Unit Residential, and Multi-Tenant Industrial asset classes.

The product gaining traction after a period of extended slump is Downtown Class “AA” Office. The Investor Outlook results shown above indicate that 54.5% of respondents forecast an increase in values for this asset class in the next 12 months, while 40% anticipated “no change”. This reveals a more positive outlook for this asset class since it suggests stability with potential for increased asset values.

In spite of this quarter’s indications of further cap rate compressions, nearly 77% of the respondents are of the opinion that OCRs would increase by 25 – 50 basis points in the event of a 1.0% interest hike. But for the moment, the commercial market has again moved into imbalance, due to a supply issue and a high level of investor confidence. Overall, this quarter’s Investment Trends Survey points to an orderly rebound in commercial market fundamentals.

Every quarter, senior Altus Group professionals reach out to over 300 investors, managers, owners, lenders, analysts and other market stakeholders to survey their opinion on value trends and perspectives. Conducted with the same benchmarks properties for over 10 years, the survey provides valuable insights on valuation parameters for 32 asset classes in Canada’s 8 largest markets. For more detailed survey results, please contact support@altusinsite.com

The Square Foot Team.

Please click here to read news from the Quebec Market

MI Developments Inc. (MID) announced that it has sold its head office property at 455 Magna Drive, Aurora, Ontario and approximately five (5) acres of adjacent land to a subsidiary of The Stronach Group for CDN$12.7 million.  Prior to the June 30, 2011 effective date, MID had leased the office/industrial building of approximately 122,516 square feet to Bionx International Corporation and Magna E-Car Systems Canada for annualized aggregate rental income of CAD$0.51 million.

MID has agreed to rent, on a short term basis, approximately 10,600 square feet of office space at 455 Magna Drive from The Stronach Group. MID has commenced a search for a new corporate office within the greater Toronto area. 

Click on the image below for the PDF document

De Grandpré Chait is the proud sponsor of the REIT Report. The square foot is responsible for gathering the information and publishing it.

While Canadians are well aware of many of Target's current product offerings (with 92 per cent indicating awareness of Target's apparel products), most consumers aren't aware of all the segments Target serves. Most notably, less than half of Canadians (44 per cent) are aware that Target offers pharmacy services - a service the retail giant has hinted at providing in the Canadian market. According to the study, Canadians are looking for more variety in men's, women's and children's apparel, especially in the 'cheap chic' category, which is the focus of Target's product offerings.

"Target's biggest challenge in entering the Canadian market will be to differentiate itself from Wal-Mart by demonstrating its unique value proposition, which values shopping experience and quality over rock-bottom pricing," says Mark Satov, President and Founder of SATOV Consultants. "Target can't win a pricing war against Wal-Mart. Capitalizing on Canadians' curiosity, it's important for Target to change consumers' brand perceptions to fit its affordable quality platform."

While most retailers are expected to experience a decrease in traffic upon Target's arrival, some appear more resilient than others. The study reveals that Canadian Tire, Shopper's Drug Mart and Costco have the most loyal customers amongst mass retailers, with only 19 per cent of current Canadian Tire and Shopper's customers, and 16 per cent of Costco customers planning to become less frequent shoppers in favour of Target.

"Canadians' overall willingness to shift trips from current retailers is a significant market indicator, but it's important to note there are more factors involved in the market dynamics. Many aspects of Target's arrival are still unknown, such as the format stores will take given the smaller size of Zellers' current locations and how that will affect the product offering," Satov adds. "For current retailers, location overlap will be a strong predictor of loss of trips, in addition to the attitudes displayed in the study. When location and product overlap are considered, there are more retailers, such as Canadian Tire, that should be concerned about loss of market share."

Target's move into Canadian operations signifies a larger shift in the Canadian retail landscape. As the country continues to emerge from the recession, some Canadian companies are reinventing their offerings to better serve the current market. With Zellers set to disappear from the retail mix and The Bay moving into higher-end brands, all eyes are on Sears due to its aging customer demographic, recent investments in strategic consultants, and most importantly, valuable string of retail properties across the country.

Another major hurdle for Target's Canadian integration is the volume of ethnic populations. With 22 per cent foreign-born population as opposed to 12 per cent in the U.S., Target will need to cater communications to specific ethnic markets. The Canadian ethnic mix varies greatly as well. The American foreign-born population is comprised largely of Mexican-born citizens (at 30 per cent of the ethnic mix), while in Canada there are large communities of immigrants from China (15 per cent) and India (10 per cent) among others.

"In Canada, Target won't have the luxury of simply translating communications materials to Spanish," Satov notes. "With Zellers locations currently serving a number of ethnic communities, Target will need to focus on how the different ethnic groups react to the brand while investing in communicating with them effectively." 

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De Grandpré Chait is the proud sponsor of the REIT Report. The square foot is responsible for gathering the information and publishing it.

Highlights of the second quarter:

• Number of locations at quarter end at 1,736, up from 1,727 at November 30, 2010;
• Revenues increased 6% to $18.4 million for the quarter;
• EBITDA before restructuring charges down 3% to $6.3 million for the second quarter;
• Net income for the second quarter at $0.19 per share, compared to $0.20 in 2010;
• Restructuring of Country Style operations undertaken, with charges of $0.4 million in severance costs recognized during the second quarter;
• Cash and short term investments total $32.1 million at the end of May 31, 2011;
• System wide sales reached $124.9 million for the second quarter, totaling $242.6 million for the first half of fiscal 2011, up 10% and 11% respectively for the same two periods last year.
• Same store sales declined by 0.05% during the second quarter, mainly because of the lagging performance of Country Style.

Results of operations for the second quarter ended May 31, 2011

MTY reported a net income of $3.6 million or $0.19 per share ($0.19 per diluted share), compared to a net income of $3.8 million or $0.20 per share ($0.20 per diluted share) for the same period last year, representing a net income decrease of 7%.

For the first six months of the 2011 fiscal period, net income was $7.02 million or $0.37 per share ($0.37 per diluted share), compared to $6.81 million or $0.36 per share ($0.36 per diluted share) during the same period in 2010 representing an increase of 3%.

Net income for the second quarter includes restructuring charges of $0.4 million incurred to integrate Country Style's team further into MTY's existing teams and centralize some functions into shared services in order to generate greater efficiencies.  The charges are mainly composed of severance and related costs, including costs related to the departure of Country Style's president, whose duties will be absorbed by the existing team.

Other than the restructuring charge, net income for the second quarter would have been stable compared to the second quarter of 2010, with the strength in the fundamentals of the business being offset by a lower number of new stores open in 2011, weaker performance of our corporate stores and by the lagging performance of Country Style.

The following table presents selected financial information for the three months ended May of 2011 and 2010: 

* for addtional information, please refer to the unaudited consolidated financial statements of the Company and to the Management's Discussion and Analysis for the period ended May 31, 2011

During the second quarter of 2011 fiscal year, the Company's total revenue increased by 6%, reaching $18.4 million in 2011 compared to $17.3 million last year.

Revenue from franchise locations regressed from $15.1 million in 2010 to $12.8 million in the second quarter of 2011, mainly because of a $3.0 million decrease in sales of turnkeys, materials and rent to franchisees. Revenues from Valentine's franchise operations for the quarter were $0.8 million, while royalties revenues grew by $0.3 million. Approximately 60% of the decrease in franchising revenues is attributable to Country Style operations, which are currently being restructured.

Revenue from corporate owned locations increased to 12% in the second quarter of 2011, owing to the addition of the Valentine corporate stores in the fourth quarter of 2010.

During the second quarter of 2011, the Company also generated distribution and food processing revenues of $1.6 million and $1.7 million respectively. There were no such revenues streams in the second quarter of 2010.

EBITDA before restructuring charges (EBITDAR) decreased by 3% during the second quarter of 2011 compared to the same period last year.  The franchising operation's EBITDAR remained relatively stable, with the decrease in revenues being offset by a reduction in the cost of sales.

During the same period, EBITDA from corporate owned locations decreased from $0.5 million in 2010 to -$0.0 million in 2011, mainly due to some relatively weaker stores recently acquired and to the disposition of a highly profitable store at the end of the first quarter of 2011.

EBITDA from the Company's distribution center was $0.2 million for the three-month period, which represents and EBITDA margin of 12%.  This performance is due to the strong sales during the second quarter for Valentine, which helped amortize fixed costs over a larger revenue base.

The newly acquired food processing plant generated a $0.1 million EBITDA after suffering a loss in the first quarter.

System wide sales reached to $124.9 million during the second quarter of 2011, compared to $113.1 million for the same period last year, representing an increase of 10%. For the first six months of 2011, system-wide sales have reached $242.6 million, up 11% compared to the first half of 2010.  In both cases, approximately half of the increase in system wide sales is attributable to the acquisition of Valentine.  The remainder is generated by new locations opened in the last twelve months.

For the second quarter of the 2011 fiscal period, same store sales decreased 0.05%.  Excluding Country Style, other concepts on average experienced positive growth during the quarter.  For the first six months of 2011, same-store sales decreased by 0.27%, mainly owing to a difficult competitive environment in the coffee industry.

For the first six months of 2011, the Company has opened 58 new locations and closed 49, including the loss of 25 non-traditional Country Style stores following the early cancellation of a contract.  The impact of this loss, although material in number of locations, is expected to be insignificant given the average sales of the closed outlets.

For 2011, management plans on opening 85 new locations and remains committed in seeking potential acquisitions to further strengthen its market position.

The Company entered into an agreement to acquire the assets of Jugo Juice International Inc., Jugo Juice Canada Inc. and Jugo Juice Western Canada Inc. The transaction is scheduled to close in July 2011. 

Entrepreneurs are poised to drive the next major wave of economic growth, but the wider community must do more to support these creative-minded innovators, Ernst & Young said when revealing this year's finalists for Ernst & Young Entrepreneur Of The Year^®.

"Quebec needs entrepreneurial role models," explains François Dufresne, Quebec Director of Entrepreneur Of The Year. "That's why it's essential that we highlight their success, and reward them. Paying tribute to entrepreneurs shows them that society appreciates their achievements. What's more, successful entrepreneurs can inspire young Quebeckers and encourage them to go into business."

Recognizing the immense potential entrepreneurs can bring to our markets and communities, Ernst & Young says governments, educational institutions, the financial sector and Corporate Canada must work together to create an ecosystem in which an entrepreneurial culture can thrive.

In a new global survey of entrepreneurs - Nature or nurture? -  Ernst & Young found that entrepreneurs are generally in a positive position, but continue to face significant obstacles. The firm says entrepreneurs need improved access to credit in addition to new educational opportunities and less red tape. Establishing that kind of ecosystem can unleash limitless entrepreneurial potential.

The key to entrepreneurial success lies in the way entrepreneurs view the world, Dufresne says. Entrepreneurs see opportunity where others see disruption. Even the financial crisis generated opportunities for those willing to seize them, and that bolsters the economy. But stakeholders must renew their focus on this area to adequately support entrepreneurs.

The Entrepreneur Of The Year Awards recognize the spirit and contribution of entrepreneurs here and around the world. The Canadian program is in its 18th year of honouring the country's most impressive entrepreneurs from all areas of business. Award winners are chosen based on their vision, leadership, financial success and social responsibility.

The Quebec winners will be announced at a banquet on October 6, and the overall winner will represent the region at the national banquet held in Toronto on November 23.

The 2011 Quebec finalists for Entrepreneur Of The Year:

Business-to-business products and services

Claude Bigras
Groupe Distinction Inc. l Lasalle
gdiservices.ca
A leading provider of building maintenance services with 9,000 employees and 17 offices in Canada.

André Gaumond
Mines Virginia Inc. l Quebec City
virginia.qc.ca
Mining exploration company that works with many projects in various stages of growth in order to develop mineral resources.

Sean Roosen
Osisko Mining Corporation l Montreal
osisko.com
A development-stage gold mining company, Osisko is currently completing the construction of the Canadian Malartic gold mine in the Abitibi mining district.

Business-to-consumer products and services

Sanjay Bakshani, Vicken Kanadjian
Cesium Telecom, Inc. l Mont-Royal
cesiumtelecom.com
One of North America's leading distributors of wireless products, Cesium introduces the latest technology from the world's top manufacturers to the North American market.

Guy Bessette, Manon Duplantie
Fix Auto l Blainville
fixauto.com
Franchisor specializing in autobody collision with key customers such as insurers.

Sylvie Myre
Voyages à rabais l Trois-Rivieres
voyagesarabais.com
Travel provider that offers vacations, flights and travel insurance.

Health sciences

Frank Baylis, Krishan Shah
Baylis Medical Company Inc. l Saint-Laurent
baylismedical.com
Recognized around the world for high tech cardiology, radiology and pain management products.

Eve-Lyne Biron
Biron Groupe Santé Inc. l Brossard
groupebiron.ca
A leader in health services in Quebec, BGS is recognized as the partner of choice in health management, offering a variety of diagnostic and therapeutic services.

Danny Minogue
Minogue Medical Inc. l Montreal
minogue-med.com
A health-care organization offering medical supplies and equipment, energy supplements and nutrition.

Information technology

Gilles Létourneau
Groupe GFI Solutions Inc. l Montreal
gfisolutions.com
A leader in consulting, development and integration of technology solutions for business, accounting and banking using both traditional methods and software as a service (SaaS) in the cloud.

Mario Bouchard
iBwave l Saint-Laurent
ibwave.com
A Canadian-based company created in 2003 from a need to standardize the emerging in-building wireless market. Its software suite and certification programs have been adopted by over 270 telecom leaders in over 70 countries.

Marc-André Roy
R3D Conseil inc. l Montreal
r3d.com
An independent consultant in management and information technology, the company is distinguished by its expertise in offering customers combined business and technology services.

Manufacturing

Jean-Robert Leclerc
Groupe Biscuits Leclerc l Saint-Augustin-de-Desmaures
biscuitsleclerc.com
Designs, produces and markets quality and innovative food products, including cookies, granola bars and crackers.

Louis Veilleux
Groupe Mundial l Saint-Lambert-de-Lauzon
metalbernard.com
Sheet metal transformation, moulding and machining of rubber and other polymers.

François-Xavier Souvay
Lumenpulse Inc. l Montreal
lumenpulse.com
Designs and manufactures cutting-edge architectural solid-state lighting for both interior and exterior applications.

Service business

David Marotte
Groupe conseil FXinnovation Inc. l Montreal
fxinnovation.com
Provider of consulting services and business optimization solutions in information technology and communications.

Marcel Dallaire
L-IPSE Services conseil inc. l Quebec City
l-ipse.com
An information technology consulting firm.

Robert Frances
PEAK Financial Group l Montreal
peakgroup.com
A network representing more than 1,000 independent financial advisors to over 135,000 Canadian investors.

Technology solutions

Isabelle Bettez, Jean-Sébastien Bettez
8D Technologies inc l Montreal
8d.com
A world leader in developing advanced, intelligent wireless, machine-to-machine, multi-function solar-based point-of-sale solutions.

Patrick Ostiguy
Accedian Networks l Saint-Laurent
accedian.com
A leading provider of High Performance Service Assurance™ solutions for carrier ethernet networks.

Vincent Chornet
Enerkem Inc. l Montreal
enerkem.com
A leading garbage-to-biofuel and chemicals company. It builds, owns and operates its compact facilities that employ its clean, proprietary technology.

Special citation - Social entrepreneur

This special citation is a unique category among the awards. It's given in recognition of an entrepreneur whose achievements have driven large-scale social change and improved people's lives or quality of life.

Gabriel Bran Lopez
Fusion Jeunesse, Montréal
www.fusionjeunessequebec.org
Youth Fusion establishes innovative partnerships between high schools and universities to counter high school dropout by creating and implementing projects that engage youth. 

Prior to the internalization, Sunstone Industrial Advisors Inc. provided PIRET with advisory, asset management and administrative services pursuant to an Asset Management Agreement entered into in July, 2007 upon the establishment of the REIT.  Each of PIRET's new officers were employed by Sunstone Industrial and have extensive knowledge of PIRET's business and affairs.

"With the completion of these employment agreements, we are formalizing the Trust's relationship with its senior personnel and have ensured an orderly transition of management through our internalization process." commented Darren Latoski, Co-CEO for PIRET. 

Scott's Real Estate Investment Trust announced that Evelyn Sutherland will be leaving Scott's REIT for another opportunity with a TSX listed issuer not in the real estate sector. Ms. Sutherland's resignation will be effective August 5, 2011. She has agreed to provide transition assistance after this date.

"She has been a key driver in the success of Scott's REIT and delivered an outstanding track record," said John I. Bitove, Chairman and CEO of Scott's REIT. "We would like to thank her for her dedication and leadership, and wish her well as she pursues this new opportunity. On a personal note I have enjoyed working with her for the past eight years."

Ms. Sutherland has been the CFO of Scott's REIT since 2006. The company is currently searching for her permanent replacement.

"I have really appreciated the opportunities that the Board and John gave me to learn and grow," said Ms. Sutherland. "As much as I will miss the team I helped build, I am excited to move on to a larger opportunity."

Update on Shoppers Drug Mart acquisition refinancing

Scott's REIT also announced that it has received a one-month extension on its $20-million facility used to acquire the original 12 properties with Shoppers Drug Mart, which was scheduled to mature on June 30, 2011. This short extension was granted on the same terms as the previously announced extension.

Scott's has entered into a conditional commitment agreement for a five-year $20-million mortgage bond at 2.35 per cent over Government of Canada Bonds. The REIT anticipates that the refinancing will be secured in July. 

Gazit Maple Inc., the beneficial owner of approximately 73.1% of the outstanding common shares  of Gazit America Inc., has entered into agreements with a third party financial institution and its lending affiliate pursuant to which it (i) guaranteed in favour of the Lenders the obligations of Gazit Maple's sole shareholder, Gazit-Globe Ltd., under (a) a revolving credit facility made available to Gazit Globe by one of the Lenders, and (b) a guarantee by Gazit Globe of the obligations of another wholly-owned subsidiary of Gazit Globe under a revolving credit facility made available to such subsidiary by the other Lender, and (ii) pledged all of the 17,033,974 common shares and 8,270,193 warrants of Gazit America beneficially owned by Gazit Maple to the Lenders as collateral to secure Gazit Maple's Guarantee.  The Obligations guaranteed and secured by the Guarantee and the Pledges have a term ending on April 17, 2016.  The security entitlements to the Common Shares and Warrants so pledged are credited to a securities account subject to an account control agreement among Gazit Maple, the securities intermediary maintaining that securities account and one of the Lenders acting as collateral agent for the Lenders.

The Common Shares beneficially owned by Gazit Maple represent approximately 73.1% of the outstanding Common Shares and the Warrants beneficially owned by Gazit Maple represent approximately 79.1% of the outstanding Warrants. Assuming the exercise of all Warrants and no exercise of Warrants by any other holder of Warrants, Gazit Maple would beneficially own 25,304,167 Common Shares (comprised of the Common Shares currently beneficially owned and the Common Shares underlying the Warrants), representing approximately 80.1% of the outstanding Common Shares of Gazit America following such exercise.

Gazit Maple entered into the Pledges and Control Agreement to secure its Guarantee of the Obligations of its sole shareholder in connection with certain lending arrangements entered into by its sole shareholder and another affiliate as described above.  Gazit Maple holds the securities described in this news release for investment purposes. Gazit Maple may, in the future, acquire additional Common Shares, Warrants or other securities of Gazit America from time to time in accordance with applicable laws and may from time to time in the future, subject to the terms and conditions of the Pledges and the Control Agreement, sell, transfer or otherwise dispose some or all of its holdings in Gazit America's securities in accordance with applicable laws.

The address of Gazit Maple is 109 Atlantic Avenue, Suite 303, Toronto, Ontario M6K 1X4.  Gazit Maple is a wholly-owned subsidiary of Gazit Globe.  As a result, for purposes of applicable Canadian securities laws, Gazit Globe also may be considered to beneficially own the securities of Gazit America described in this news release.  The address of Gazit Globe is 1 Derech Hashalom, Tel-Aviv, Israel.

"We are pleased to welcome Ms. Paul to our management team. Her financial skills, combined with her extensive experience in complex organizations, will contribute to the Caisse's long-term success for the benefit of its depositors and all Quebecers," said Michael Sabia, President and CEO of the Caisse.

As Chief Financial Officer, Ms. Paul will be responsible for treasury and financing activities, managing operating expenses as well as maintaining relationships with the credit rating agencies. She will also be responsible for ensuring that the Caisse's financial governance is always consistent with best practices in the industry.

A chartered accountant, Ms. Paul worked at BCE from 1994 until the winter of 2011, where she held senior financial management positions for most of those years. Previously, Ms. Paul spent ten years working at KPMG the audit and taxation services firm. 

Just as female fever is bringing a raft of long-overdue products and services to women, so there are plenty of opportunities to better serve the men of this world as well. Time to start brainstorming!

Using Statistics Canada data and real estate intelligence from Canada's leading provider of national office market data, Base10 analyzes the trends in vacancy rates and absorption in all classes of the Downtown office market, comparing them with current labour market information and oil and gas sector indicators. They conclude that the oft-reported trends and overly optimistic forecasts simply do not add up.

The report provides an independent, objective look at Calgary's downtown office market based on factual and transparent data sources. It looks beyond the market data and discusses what the trends mean and how they are impacting the performance of many assets.

"Sound investment decisions depend on the availability of sound information. There is a lot of incomplete information out there in the office market," says Bryan Slauko, Managing Director at Base10 Capital Advisors. "Whether you're an owner, investor, developer or a tenant in a commercial real estate space, you expect and depend on the availability of reliable, insightful data to make informed decisions. This report arms people with the facts they need."

Key findings include:

• Average Downtown Calgary office vacancy rates are greatly understated.
• 2010 and 2011 office absorption figures are significantly overstated.
• West Core Class B and C spaces face considerable challenges with high average vacancy rates of 17.4% and 16.8% respectively.
• Average Downtown Calgary vacancy rate is forecast to increase significantly to 16% by December 2011.

The future of the Downtown office market in Calgary is not as encouraging as some would have us believe. Owners and investors of Class B and C office assets, in particular, are facing many difficulties due to declining cash flows and significant declines in valuation. This situation requires swift, strategic action to avoid significant crisis and the erosion of many millions of dollars of investors' equity.

Solving these problems requires the sophisticated expertise of professional, experienced service providers and advisors who recognize their role in maximizing the value of an investment in commercial real estate and who have the specialized expertise required in today's market to deal with these issues.

Base10 Capital Advisors is an independent real estate advisory and asset management firm that provides sophisticated, institutional quality expertise to mid-market commercial real estate investors. Base10 builds long-term relationships with its clients by providing independent, professional advice, enabling them to minimize risk and maximize value.

Full report available here.

Click on image to be redirected to YouTube to view video showing vacancies in Downtown Calgary.

Please click here to read news from the Quebec Market

Homburg Invest Inc. (HII) announced that it has sold the properties municipally known as 100 Centron Park located at 3600 4 St. SE in Calgary, Alberta and 200 and 300 Centron Park located at 4000 4 St. SE in Calgary, Alberta, to Homburg Canada Real Estate Investment Trust (HCR) for a total consideration of $39.7 million payable in cash.

Proceeds of the sale will be used to make an interest payment on long-term debt; to fund a guarantee of future head lease rents to the buyer; to complete previously agreed upon tenant leasehold improvements and to pay down bank debt.

HII has also granted HCR an option to acquire, if and when constructed, buildings that will be municipally known as 400, 500, 600 and 700 Centron Park, as well as the lands upon which these buildings are intended to be erected.

"Downtown Winnipeg's historic comeback as an exciting destination for Manitoba families and visitors alike is in full swing," said Premier Selinger. "This major private investment next to the home of the reborn Winnipeg Jets demonstrates the kind of private-sector confidence that results when governments, agencies and community partners work together toward a shared vision of renewal."

"I am proud, as Mayor of Winnipeg, that the City has created the climate that attracts major private investment critical to revitalizing our city's downtown," said Mayor Sam Katz. "This key location, as a rejuvenated hospitality and commercial development, is a catalyst to returning Portage Avenue to the vibrant hub it once was and I commend CentreVenture for their dedication to ensuring this development became a reality."

Stantec will provide full architecture and engineering services to design the mixed-use tower.  As an anchor tenant, Stantec will bring over 250 employees to the new Stantec Building when it opens in 2013.  The project includes restoration and reuse of the Mitchell-Copp building's historic façade.  It will form an important part of the new development's character and serve as the main entrance to the office component. The 200,000 square feet project will incorporate a new 20-storey tower where Groupe Germain Inc. will operate their ALT Hotel brand with 154 rooms on the upper 12 floors.  The main floor will be retail and restaurant space, and offices on floors two to six, with Stantec occupying over half the available area.

"Getting control of the former A & B Sound building was critical to our ability to advance the Portage Avenue Strategy," said Ross McGowan, President & CEO of CentreVenture.  "In colloboration with the Forks North Portage Partnership, we were able to consolidate this site with the Mitchell-Copp building. The assembly of the two properties created a site large enough for a significant development and we are ecstatic that Longboat Development Corporation (LDC) stepped to the plate with a redevelopment plan. We believe the confidence LDC and ALT Hotels have in the downtown is just the tip of the iceberg and we will see increasing private sector investment in the downtown as a result of this bold development statement."

"We are great believers in the rejuvenation of Winnipeg's downtown and the vision CentreVenture is creating for the SHED district in particular," according to Jeoff Chipman, President & CEO of The Stevenson Group, which includes Longboat Development Corp.  "We realize that Portage Avenue is the 'face' of our downtown and a major initiative for this project is to focus an entire new, vibrant level of activity to the corner of Portage and Donald.  Longboat has invested substantial time and effort on the project and we will continue to push forward to bring the building image unveiled here today to reality.  We're confident this can be the all-important first step in the creation of the SHED district."

Yes Winnipeg! working with ANIM (Manitoba's bilingual Trade Agency) facilitated the connection between CentreVenture and the Quebec-based Groupe Germain Hospitality.  The ALT brand is a refreshing alternative hotel experience, developed by the Germain family, pioneers of the Boutique-hotel concept in Canada. This leading-edge company attracts business and leisure travelers combining comfort and innovation with a unique pricing strategy.  In short, ALT means a unique alternative to conventional hotels, at an accessible price - with easy access to transportation, services, businesses, and recreation.

"We're thrilled to be taking part in this important project in Winnipeg.  It is a perfect fit for the development strategy of our ALT Hotel banner in Canada.  We have met people in Winnipeg whose drive and enthusiasm are contagious.  The project we're participating in will definitely make this part of the city a lively neighbourhood," said Jean-Yves Germain, co-president of Groupe Germain Hospitality.

"We believe in Winnipeg and the future of downtown, so we're investing our company and our people into this space and creating a sustainable home for our business," says Eric Wiens, Stantec Manitoba Vice President. "This facility also lets us showcase who we are and what we do. Our team will be involved in the building's creation, from architecture and engineering, to project management, environmental sciences and archaeology. Stantec is a catalyst for the SHED district and we look forward to helping to shape a new vision for Winnipeg's downtown, and the city as a whole."

CentreVenture Development Corporation was created in June 1999 as an arms-length agency of the City of Winnipeg.  CentreVenture's mandate is to stimulate downtown revitalization by creating an environment for private sector businesses and government to work together and to promote the downtown to investors, businesses and residents. CentreVenture serves as an advocate and a leader for downtown in promoting development by identifying opportunities, creating partnerships, forming innovative improvement strategies, providing information and by serving as an accessible conduit to support initiatives. 

Click on the image below for the PDF document

De Grandpré Chait is the proud sponsor of the REIT Report. The square foot is responsible for gathering the information and publishing it.

J.Crew first became available to Canadian shoppers in 1991 through its celebrated catalogue, and is well-known for women's and men's apparel, shoes and accessories including weddings and parties, and crewcuts for kids.  This new store will mark the company's first international location.

"We're so excited to be opening our first J.Crew store in Canada," says Jenna Lyons, President and Executive Creative Director of J.Crew. "We're in the process of finalizing the look and feel of the store to be sure it's the absolute perfect backdrop for our carefully edited collections."

The over 5,000 square foot store will showcase a carefully edited selection of women's-only clothing and accessories.  Everyday classic designs along with Weekend, outerwear, bags, belts, jewelry and shoes are intended to mix effortlessly with limited-edition pieces from the highly coveted Collection label.  The J.Crew Collection is an evolving gallery of seasonally-updated designers' fantasy pieces crafted in the world's finest fabrics with couture level detailing. 

Established in 1994 and headquartered in Mississauga Ontario, Walmart Canada operates 325 stores and serves more than 1 million customers each day. Walmart is Canada's third-largest employer with 85,000 associates, and is recognized by Waterstone Human Capital as having one of Canada's top 10 corporate cultures. Since 1994, Walmart raised and donated over $125 million to Canadian charities and not-for-profit organizations. 

The Credit Facility has a maturity date of March 31, 2013 and bears interest at the annual rate of 12.5%, payable monthly. It may be prepaid at any time prior to the maturity date, in whole or in part, without premium or penalty. Subject to receipt of all necessary regulatory approvals (including approval of the Toronto Stock Exchange) and conditional upon funding of the Credit Facility, the REIT will issue to the Lender up to 3,000,000 warrants to purchase units of the REIT  on the basis of 150,000 units per $1,000,000 drawn under the Credit Facility, except that the REIT will be required to issue a minimum of 2,000,000 Warrants to the Lender irrespective of the amount drawn by the REIT. Subject to adjustment as set out in the Credit Agreement, the Warrants will be exercisable for a period of three years from the date of issuance for up to 3,000,000 units of the REIT (representing approximately 7.7% of the REIT's issued and outstanding voting units on a non-diluted basis as at the date hereof) at an initial exercise price equal to $0.40. If the REIT is unable to issue the Warrants in certain circumstances, the REIT will be obligated to pay to the Lender the sum of $1,000,000.

As a result of George Armoyan and Michael Rapps being trustees of the REIT and also officers of Geosam (and, in the case of Mr. Armoyan, also a principal of Geosam), the Credit Facility and related issuance of Warrants are considered to be related party transactions under applicable securities laws. Where available, the REIT has relied upon exemptions in respect of the formal valuation and minority unitholder approval requirements under applicable securities laws. The Credit Facility is not subject to the formal valuation requirements under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, and the REIT has relied upon the exemption in paragraph (f) of section 5.7 of MI 61-101 as the Credit Facility was obtained on reasonable commercial terms that are not less advantageous to the REIT than if obtained from an arm's length party. However, the issuance of the Warrants constitutes a related party transaction under applicable securities laws requiring disinterested unitholder approval and a formal valuation of the Warrants by qualified and independent valuators. A formal valuation of the Warrants was completed by Stonecap Securities Inc. (as disclosed in Appendix P to the Circular) and unitholder approval was successfully obtained at the Meeting for the potential issuance of Warrants to Geosam (or a legal entity in which Geosam and one or more other parties have an interest) and/or to a syndicate of lenders that includes Geosam

"BeyondtheRack.com was the fastest-growing online retailer in this year's top 500 rankings and the fastest-growing Web-only merchant," says Mark Brohan, Vice President of Research for Internet Retailer and Editor of the Top 500 Guide. "They achieved this position by concentrating on diversification and meeting the needs of their mid-market audience of Web shoppers."

"Over the past two years, we've grown from a four person start-up with a dream, into one of the market leaders in the e-commerce space with over 230 devoted, energetic team members in Montreal, New York, and Toronto, as well as 4 million consumer members across North America. Internet Retailer is one of the most prestigious and influential national business magazines, and we are honored to rank as the fastest growing e-tailer. This marks another major milestone on our journey, and we could not have done it without the support from our dedicated teammates and vendors," says Beyond the Rack CEO, Yona Shtern. 

The Stanley Cup isn't returning to Canada this year, but American tourists certainly are. Ten of the 50 destinations on priceline.com's list are Canadian, including Montreal, Ottawa, Toronto and Banff. And Vancouver needn't worry about any tourism fallout after its Cup loss - the city's neighborhoods appear twice on this year's July 4th list.

Priceline's annual Top 50 Destinations list is based on hotel room booking requests made by customers using priceline.com's Name Your Own Price® hotel reservation service. Because the survey is based on thousands of credit card-backed booking requests, and not on consumer preference polls or votes, priceline.com believes the annual survey is one of the more accurate predictors of July 4th travel trends.

Commenting on the survey, priceline.com's in-house "Travel Ekspert" Brian Ek said, "With record high temperatures in various parts of the country, many Americans appear to be headed for hopefully cooler northern destinations over the July 4th long weekend. This is similar to the trend we saw last year except, in 2010, it was the BP oil spill that was affecting tourism in southern beach destinations. It's also worth noting the strong recovery of New Orleans. For July 4th, 2010, the city was #26 on Priceline's list. This year, it's the #2 most-popular destination for the long weekend."

    The Priceline Top 50 Destinations List for July 4th 2011

    #1  Chicago, North Michigan Avenue and River North Area

    #2  New Orleans, French Quarter

    #3  Montreal, Downtown/City Center

    #4  Ottawa

    #5  New York City, Midtown West

    #6  St. Catharines, Niagara Falls

    #7  Seattle, Downtown/Pike Place

    #8  Las Vegas, Strip North Area

    #9  Pittsburgh, Downtown

    #10  San Diego, Downtown & Harbor Island

    #11  Chicago, Millennium Park, Loop & Grant Park Area

    #12  San Francisco, Fisherman's Wharf

    #13  Toronto, North Downtown

    #14  Portland, Downtown

    #15  New York City, Times Square/Theater District

    #16  Buffalo, Niagara Falls

    #17  Harrisburg

    #18  Toronto, South Downtown

    #19  Nashville, Downtown/Vanderbilt/Metro Center

    #20  New York City, Upper East Side

    #21  Milwaukee, Downtown

    #22  Las Vegas, Strip Vicinity South

    #23  St. Louis, Downtown

    #24  Seattle, Seattle Center/Space Needle

    #25  London, Westminster

    #26  New York City, Downtown/Soho/Financial District

    #27  Anchorage

    #28  Montreal, Convention Center/Old Montreal

    #29  Boston, Quincy Market/Faneuil Hall/ Financial District

    #30  Buffalo, Airport Area

    #31  Harrisburg, Harrisburg/York

    #32  Charleston, Downtown

    #33  Oahu, Waikiki Beach Area

    #34  Seattle, Airport Area

    #35  Vancouver, Downtown

    #36  Atlantic City, Atlantic City/Cape May

    #37  Washington, DC, Convention Center/Capitol Hill Area

    #38  San Francisco, Union Square East

    #39  New Orleans, Downtown Area

    #40  Orange County, Newport/Huntington Beach

    #41  Austin, Downtown

    #42  New York City, Midtown East

    #43  Banff

    #44  Victoria

    #45  Chicago, Greater Chicago Area

    #46  Los Angeles, Santa Monica/Marina Del Rey

    #47  Vancouver, Airport Area

    #48  London, Hammersmith

    #49  London, Mayfair/Soho

    #50  Cincinnati, Downtown

The previously announced acquisitions of 415 Yonge Street in Toronto, Ontario and MTS Place in Winnipeg, Manitoba, aggregating $105.5 million, are anticipated to close this summer.

Artis recalculated its reported Q1-2011 Property NOI to adjust for the impact of Q1-2011 acquisitions completed in the period, as well as for the impact of all other acquisitions completed and announced to date.  This results in a pro-forma quarterly Property NOI of $49.0 million, or $196.0 million on an annualized basis.

New Acquisitions

201 Westcreek Boulevard is a 301,113 square foot Class A industrial building, with 70,977 square feet of office space on two floors. The property is centrally located in the Greater Toronto Area West Industrial market and is in close proximity to Highway 407, Highway 410, and the Pearson International Airport. 201 Westcreek Boulevard is 100.0% leased to ABB Inc., a group holding based in Zurich, Switzerland and the largest organization of electrotechnical companies in the world. The property is situated on a 13.33 acre site and provides an additional development opportunity of ten acres of serviced, surplus land. The purchase price of $34.4 million, representing a going-in capitalization rate of 8.4%, is expected to be financed with cash on hand and from the proceeds of an anticipated new $22.8 million three-year mortgage bearing interest at a fixed rate of 3.43% per annum. The acquisition is anticipated to close on or about June 30, 2011.

Union Hills Office Plaza is a 142,773 square foot three-storey Class A Energy Star certified office building located in north metropolitan Phoenix, Arizona. The property is 95.5% occupied, with its largest tenant, the University of Phoenix/Apollo Group occupying 59.5% of the building on a long-term lease expiring in 2017, with contractual rent increases. Union Hills Office Plaza has 695 surface parking stalls, which provides for an excellent parking ratio of 4.9 stalls per 1,000 square feet of leasable area. The purchase price of US$27.1 million, representing a going-in capitalization rate of 8.1%, is expected to be financed with cash on hand and from the proceeds of a new US$18.9 million five-year mortgage bearing interest at a floating rate currently equivalent to 2.44% per annum based on current bond rates. The acquisition is anticipated to close on or about June 30, 2011.

Plymouth Corporate Campus is an 83,617 square foot industrial showroom complex located in a suburb of Minneapolis, Minnesota. The property is situated within one of the strongest industrial markets in Minneapolis, in close proximity to Interstate 494 and County Road 6. Plymouth Corporate Campus is 100.0% occupied by four high-quality tenants, including Tile by Design and United Operations, with an average term to maturity of 10.7 years. The purchase price of US$5.8 million, representing a going-in capitalization rate of 8.3%, is expected to be financed with cash on hand and from the proceeds of an anticipated new $4.0 million five-year mortgage bearing interest at a floating rate currently equivalent to 2.44% per annum. The acquisition is anticipated to close on or about July 6, 2011.

The Aluma Systems Building is being constructed as a 65,000 square foot industrial building in Edmonton, Alberta. The property is 100.0% pre-leased to Aluma Systems on a 15-year lease with rent escalations every five years. Aluma Systems is wholly owned by Brand Energy, Inc., the leading provider of multi-craft services to the energy infrastructure market. The purchase price of $17.1 million, representing a going-in capitalization rate of 7.6%, is expected to be financed with cash on hand and from the proceeds of an anticipated new mortgage on terms yet to be determined.  The acquisition is anticipated to close in November 2011, once the building is substantially complete.

Previously Announced Acquisitions

Particulars about our recently closed transactions are as follows:

Artis anticipates it will close on the previously announced 415 Yonge Street acquisition on or about June 28, 2011. The purchase price for this 98.6% occupied 191,880 square foot downtown Toronto office property is $49.7 million. The going-in capitalization rate for this property is 7.0%. Artis expects to finance the acquisition with cash on hand and from the proceeds of a new $35 million, 10-year mortgage bearing interest at a rate of 4.67% per annum.

Artis anticipates it will close on the previously announced MTS Place acquisition during the summer of 2011. The property comprises 269,124 square feet of leasable area and is 100.0% occupied. The purchase price of $55.8 million, representing an average capitalization rate of 7.1%, is expected to be financed with cash on hand and by way of the assumption of approximately $39.5 million of existing mortgage financing, maturing in June 2017 and bearing interest at a fixed rate of 5.14% per annum.

Artis is a diversified Canadian real estate investment trust investing in office, industrial and retail properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the United States, with a major focus on Western Canada. Artis' commercial property comprises over 15.6 million square feet of leasable area in 157 properties. Leasable area by asset class is approximately 23.7% retail, 42.9% office and 33.4% industrial. The portfolio is located 10.3% in British Columbia, 31.0% in Alberta, 6.0% in Saskatchewan, 20.6% in Manitoba, 9.6% in Ontario and 22.5% in the U.S. 

Located in north-west Quebec City, within the suburb of Val-Belair, Polyclinique Val-Belair is a newer development that has become the dominant medical office property in a rapidly growing market. Polyclinique Val-Bélair is 97% leased on a long term basis and benefits from a quality roster of tenants including a large government affiliated medical clinic and other healthcare related tenants.  Retail tenancy at the property complements these medical uses, with a large Familiprix pharmacy (over 250 locations across Quebec and New Brunswick) and two large national tenants, Dollarama and National Bank.

The purchase price will be approximately $11 million, subject to adjustments. The property is to be acquired free and clear, providing an opportunity to secure longer term mortgage financing in due course. The equity portion of the REIT's investment will be funded from existing resources.

The investment will be REIT's fourth acquisition in Quebec City and its fourteenth asset in the Province of Quebec. The REIT believes that the acquisition of Polyclinique Val-Belair will further solidify its market leadership in healthcare real estate in Quebec City, in the Province of Quebec and in Canada. 

The conversion into a REIT, made by plan of arrangement under the Canada Business Corporations Act, has been approved by the shareholders of Fronsac during the annual and special meeting held May 26, 2011 and was ratified by final order issued by the Superior Court of Quebec June 22, 2011.

Upon closing, shareholders of Fronsac will receive one REIT unit for each common share held in Fronsac. Shares of Fronsac shall be de-listed from the TSX and the real estate portfolio of Fronsac will be owned by the REIT. All current officers and directors of Fronsac will remain members of the management team and board of trustees of the REIT.

It should be noted that the REIT has adopted a stock option plan similar to that of Fronsac. Stock option and share purchase warrant holders of Fronsac will receive, for every such option or warrant, one unit option or unit purchase warrant of the REIT, at the same and term, and under the same conditions as the option or warrant issued by Fronsac initially.

About Fronsac Real Estate Investment Trust and Fronsac Capital Inc.

Fronsac Real Estate Investment Trust is an open-ended trust which will, upon closing of the above-mentioned conversion, hold Fronsac Capital Inc.'s real estate portfolio and continue its growth strategy.

Fronsac is a Canadian corporation listed on the TSX Venture Exchange engaged in the commercial real estate business. Fronsac currently holds two properties, one bordering highway 20 in Mont St-Hilaire (Quebec) including a McDonald's restaurant, a convenience store and Ultramar gas station, the other located in St-Jean-sur-le-Richelieu (Quebec) bordering highway 35 including a convenience store, a Shell gas station and car wash. These two properties are the main assets of Fronsac.

Fronsac is always on the lookout for real estate properties which, ideally, offer a combination of gas station, convenience store and fast food services. 

NAI manages a network of commercial real estate firms comprising 5,000 professionals and 350 offices in the US and 55 countries throughout the world. NAI’s network members provide a full spectrum of corporate, financial, technology and project management services.

“C-III plans to use its asset base, along with strategic acquisitions such as NAI, to create a fully diversified commercial real estate services company,” said Mr. Farkas. “This is the strategy that was successful for Insignia. C-III is led by the same team that built Insignia, and with C-III’s significantly larger asset base, I believe C-III can substantially exceed Insignia’s success,” concluded Mr. Farkas. At its height, Insignia managed $12.5 billion in assets, while today C-III’s portfolio approximates $150 billion in assets. Insignia was one of the largest commercial real estate services companies in the world when it merged with CB Richard Ellis in 2003.

C-III commenced operations with the purchase of Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March 2010. Since that time, CIII has successfully launched mortgage origination, investment sales and title insurance businesses from scratch, and expanded its principal investment, loan origination fund management and primary and special loan servicing businesses.

“Today’s agreement represents a tremendous opportunity for NAI and our members,” said Gerald C. Finn, Chairman of NAI Global. “By teaming up with Andrew Farkas, one of the world’s leading real estate businessmen, we expect NAI will be able to significantly grow its service offerings and present new opportunities to our members.”

“We have built the world's leading commercial real estate network, but we now believe it is time to take the enterprise to a new level and add even greater value to our members and our collective corporate and investment clients. The combination with C-III will provide a depth of resources, talent and tools from which we can draw upon to accelerate our growth,” noted Jeffrey M. Finn, President and CEO of NAI Global. “Rarely do you find partners so perfectly strategically aligned as NAI Global and C-III. This is a natural fit and extremely exciting news for the industry.”

Mark Lievonen

The province of Ontario contributed $13.9 million to the project through the Biopharmaceutical Investment Program, part of the Next Generation of Jobs Fund. This investment helped retain a large vaccine R&D footprint in Ontario and will help secure future manufacturing jobs, since it is easier to reach commercial manufacturing scale for new products when R&D facilities are in close proximity to the actual manufacturing site.

"Sanofi Pasteur is a valued partner in our commitment to health care in Ontario," said Premier Dalton McGuinty. "This impressive new building houses some of the most exciting talent anywhere, doing some of the most vital research in the world. We congratulate Sanofi Pasteur and look forward to new breakthroughs and new jobs."

A national strategic asset
The new R&D facility, known internally as "Building 95", will help the company retain over 300 highly-skilled vaccine research positions and bring many of the company's accomplished scientists and state-of-the-art technologies under one roof. In fact, the North American Centre of Excellence designation means the critical mass of scientific expertise at Connaught Campus is playing a lead role in advancing Sanofi Pasteur's global vaccine pipeline.

The Toronto site manufactures many vaccines vital to public health with 94% of its vaccine production being delivered to over 90 countries around the world.  In fact, over 20% of global sales at Sanofi Pasteur, the world's largest vaccine company, are generated by vaccines manufactured at the Connaught Campus. Its strategic positions include:

• The only manufacturer of 5-component acellular pertussis combination vaccines globally
• The only manufacturer of polio (IPV) vaccine in the Americas
• The only Canadian manufacturer of diphtheria and tetanus vaccines
• The capacity to stockpile paediatric vaccines domestically to ensure security of supply for Canadian immunization programs

"The ability to research, develop and manufacture vaccines puts Canada among a handful of countries with the domestic capability to respond to vaccine-preventable public health threats," said Mark Lievonen, President of Sanofi Pasteur Limited.  "The unique and extensive capabilities of the Connaught Campus make Sanofi Pasteur a strategic Canadian asset for the protection of public health."

A history of innovation
From its somewhat humble origins in a downtown Toronto stable in 1914, Sanofi Pasteur has built a history of innovation, partnerships and wealth creation in Canada that has benefited the world. The company's Toronto facilities were home to the world's first commercial insulin production and the company was also the sole supplier of insulin to Canadians until the 1980s; produced a highly accessible antitoxin for diphtheria, the number one public health threat to Canadian children in the early 1900s; and was an important partner in the eradication of polio in North America and smallpox globally.

The site also boasts Canada's only billion-dollar biotech product - the world's first five component acellular pertussis vaccine was researched and developed in Toronto and today is manufactured and exported to 62 countries around the world. This Canadian vaccine has become the international gold standard for preventing whooping cough, which is a constant threat to global public health, even reaching epidemic proportions in California recently.

"Sanofi Pasteur has over 95 years of history in Canada and Building 95 will help write the next 95 years of Canadian innovation," declared Mark Lievonen.

Experts have been calling for urgent action in vaccine research, as highlighted in the "New Decade of Vaccines" series published this month in The Lancet. That's why Sanofi Pasteur is proud of the $600 million in capital investments made in Toronto in the past decade. The company employs over 1,100 people at the Connaught Campus, including 300 in R&D and over 700 in highly-technical vaccine manufacturing jobs. 

"This transaction is perfectly aligned with Ivanhoe Cambridge's strategic plan to continuously improve the performance of our portfolio through consolidation and by increasing our focus on our core assets. We are committed, more than ever, to maximizing the quality of our portfolio by investing in key markets and by redeveloping our properties in Canada and abroad," added Kim McInnes, President and CEO of Ivanhoe Cambridge. 

Representing an investment of approximately $22 million, the renovations were aimed at bringing together under one roof all the Canadian head office employees in the Biopharmaceutical and Animal Health Divisions. 

Incorporating a common area concept, the new facilities further encourage collaboration and teamwork and maximize the use of the renovated spaces. Thanks to the new technologies put in place, Pfizer's employees can work in different places in the building, which combines flexibility and cooperation. 

Recognized as an employer of choice and granted Healthy Enterprise - Elite certification by the Bureau de normalisation du Québec, Pfizer Canada is also proud to provide its employees with a healthy work environment, in particular, through its health and well-being program, VIVA. Among the current services and programs are personalized advice from on-site health professionals (kinesiologist, dietitian and occupational hygienist), group activities (physical fitness sessions, health fairs and lunchtime workshops), a cafeteria that provides balanced meals, and exercise rooms. 

Pfizer Canada has long considered workplace and environmental management one of its top priorities. This commitment is very much in line with the company's belief that it takes More than medication to be truly healthy. 

"At Pfizer Canada, we are confident that the upgrading of our facilities is helping us strengthen our employees' sense of belonging, which is enabling us to set ourselves apart from other companies in terms of recruitment, hiring and retention. So, I'm very proud to tell you that Pfizer is the pharmaceutical company with the largest workforce in Quebec, with more than 2100 employees," said Paul Lévesque. 

This inauguration is, of course, in step with Pfizer Canada's desire to maintain a strong presence and is an example of Pfizer's commitment to remain the leader in Quebec's and Canada's biopharmaceutical industry, especially in the Montreal area. 

"Our latest acquisitions and the renovations we just completed have enabled us and will continue to enable us to attract high-quality employees and will provide substantial economic spinoffs. Canada and Quebec provide an environment conducive to the industry's growth, and today's announcement is just one example of the positive spinoffs of the policies that have been implemented," added Lévesque. 

"As the MNA for Nelligan, I am very proud to be involved in this announcement, which shows once again that Pfizer Canada is a pharmaceutical industry leader and a real economic force in the Montreal area. As the Minister of Families, I am delighted that a company like Pfizer Canada is strengthening its commitment to work-life balance, which is a matter very close to my heart," said Minister Yolande James. 

When it was founded in 1953, Pfizer Canada chose the Montreal area for its head office, and some years later, in 1975, it moved to the Kirkland facilities. Since then, and especially over the past 10 years, Pfizer has merged, at the global level, with three large pharmaceutical companies, two of which are Wyeth, in 2009, and King, in 2010. Each time, Pfizer Canada kept its head office in Montreal. Several expansion projects have followed, including this recent major investment to bring all Pfizer Canada head office employees under one roof. 

In addition to optimizing the occupied space and revamping the work premises, the renovations have facilitated collaboration and will provide the flexibility needed to react to internal changes. 

Fraser Milner Casgrain LLP (FMC), one of Canada's leading business and litigation law firms celebrates its new space at 250 Howe Street. Occupying the top four floors of the Class AAA, 272-feet tall building, the firm's new Vancouver workspace incorporates the latest in design, sustainability and technology.

"FMC's new home is a tangible manifestation of the firm's transformational culture and growth-oriented business vision," says John Sandrelli, Managing Partner, FMC Vancouver. "This beautiful, highly functional and sustainable working environment is part of FMC's strategy to attract and nurture the best legal talent in our industry, foster innovation to create and deliver exceptional legal solutions, and connect with our clients by locating FMC's offices in Canada's major business and legal centres."

The features of FMC's Vancouver's new workspace include:

• Commitment to sustainable business practices and mindsets that permeate every aspect of the firm's operations and business decisions, from high-efficiency technology to motion-activated lighting systems to a long-term sustainability plan
• Meeting Gold Level LEED Certification standards
• GREEN AT WORK™ initiative, aiming to achieve zero waste by implementing consistent waste diversion and minimization measures
• Secure wireless network exclusively owned and operated by FMC, giving its clients the confidence and security they expect when doing business with the firm
• State-of-the-art media presentation centres and meeting rooms incorporating audio, videoconference, data, presentation and smart board technology and facilitating collaboration and knowledge sharing

  

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That's exactly what I did this week though, as I visited the CN Tower to check out Toronto's newest, most thrilling attraction, EdgeWalk. Now nearly completed but still very much a construction zone, my apprehension almost got the better of me as I stood at the precipice of the EdgeWalk doorway. For lack of a better description, it feels like you're about to step into the sky.

With my adrenalin pumping and harness safely secured, the extremely hardworking construction workers and officials at the CN Tower managed to coax me out onto the platform - and I'm incredibly glad they did!
The weather was perfect for my foray. In such pristine conditions the experience was unlike anything I could have imagined; the feeling of absolute freedom you get from standing outside at such great heights mingled with the exhilaration of literally having Canada's largest city at your feet. Also, because you have a generous amount of time on the platform, the tingly sensations you get from being over 1000ft in the air lingers for the entirety of your excursion.

When tickets went on sale for EdgeWalk this month the box office was nearly swamped by public demand. We're trying our best to meet the popularity of this attraction and I truly hope everyone gets a chance to experience it.

Personally, I can't wait to see the smiles of the each enthusiastic participant as they take their first steps among the clouds.
 

On June 6, 2011, Killam closed the previously announced acquisition of a six-building, 310-unit apartment portfolio in Fredericton. The buildings are located within a block from each other, on Reynolds Street (200, 300 and 305 Reynolds) and neighbouring McKnight Street (25, 110 and 120 McKnight). The portfolio, built between 1996 and 2010, contains 35 one-bedroom, 212 two-bedroom and 63 three-bedroom units. The average rent is $931 per month, with tenants responsible for their own heating costs. The purchase price of $36.1 million ($116,500 per unit) was satisfied with $22.2 million in new and existing mortgages with a weighted average interest rate of 4.3%, and the balance in cash. The cap rate on the acquisition is approximately 6.2%.

Killam will acquire a three-building, 96-unit portfolio in Moncton. The properties, 155 Canaan Street and 115 - 133 Kedgwick Street, were built between 2008 and 2010. The buildings include 12 one-bedroom units, 81 two-bedroom units and 3 three-bedroom units, and have an average monthly rent of $922 per month, with tenants responsible for their own heating costs. The purchase price of $10.0 million ($104,200 per unit) will be satisfied with the assumption of $7.2 million of existing debt with a weighted average interest rate of 5.05% and the balance in cash.  The cap rate on the acquisition, expected to close during the first week of July, is approximately 6.1%.

Killam will also acquire a two-building, 64-unit complex on Church Street located in Moncton. The buildings include 64 two-bedroom units with an average rent of $669 per month, with tenants responsible for their own heating costs. The purchase price of $4.3 million ($67,000 per unit) will be satisfied with the assumption of an existing mortgage of $2.6 million at 4.38%, and the balance in cash. The cap rate on the acquisition, expected to close during the last week of June, is approximately 6.2%.

"We are pleased to be expanding our portfolio of apartments in Fredericton and Moncton, two of our core markets", noted Philip Fraser, Killam's President and Chief Executive Officer. "In addition to complementing our existing portfolios in each city, these properties increase the percentage of Killam's apartment portfolio heated with electricity, where Killam is not exposed to rising energy costs."

"We continue to have an active acquisition pipeline and look forward to announcing additional acquisitions in the coming months as we grow our business though expansion in our existing markets in Atlantic Canada and in Ontario."

 

Delivered in partnership with Brookfield Office Properties, attendees to this inaugural annual auto event will have the chance to check-out the hottest new automotive trends in a relaxed, business environment; enjoy unparalleled access to vehicles from many of the world's top manufacturers and even get behind the wheel and test drive several new models. Manufacturers set to roll out their hottest rides for the 2011 Toronto Motorexpo include Buick, Cadillac, Chevrolet, Engineered Automotive, GMC, Jaguar, Land Rover, Porsche and Saab to name just a few; while an additional highlight will be a cavalcade of E-Type Jaguars descending on Brookfield Place on Monday June 20 to mark the 50th anniversary of this most iconic of vehicles.
"We are delighted to be producing our first ever Canadian showcase and look forward to bringing our unique free to attend auto show to Toronto for local residents, the downtown business population and all automotive enthusiasts to enjoy," said Motorexpo CEO Graeme Carver. "Our unrivalled format allows everyone the chance to get up close and personal with the latest vehicles that many of the world's best manufacturers have to offer!"

"Brookfield is proud to welcome Motorexpo - an exhibition of the newest and most dynamic automobiles from around the globe - to Brookfield Place and the city of Toronto" said Brookfield Office Properties Canadian Commercial Operations President & CEO Jan Sucharda. "Motorexpo has established itself as one of the more popular annual exhibits at our properties in New York City and Los Angeles, and Brookfield is committed to enhancing the amenities and overall experience at our downtown Toronto properties. We hope that our tenants, visitors and the residents of Toronto enjoy this up-close display of what many of the world's leading motor manufacturers have to offer."

The Toronto Motorexpo is modeled after the successful Canary Wharf London Motorexpo that has taken place annually since 1996. In the last two weeks, the London Motorexpo welcomed more than 400,000 visitors, making it the United Kingdom's largest auto show event. In addition, the Motorexpo is now a firm fixture on the Los Angeles and New York Calendars having been produced for the second annual showing earlier this year in California and set to return to the World Financial Center in Lower Manhattan for the 4th annual New York Motorexpo from Sunday September 18 through Friday September 24, 2011.

 

WHW Architects is a full service architectural practice with outstanding design and technical work which has been recognized with numerous awards, including several "Lieutenant Governor's Design Awards for Architecture". Their broad range of work includes projects in education, healthcare, recreation, transportation, cultural, retail and commercial buildings.

"We are very pleased to welcome WHW Architects as a business partner as it has become a brand recognized for its excellence in architectural consulting. This transaction will enable us to increase the array of services we offer our clients and will further position us as the "must-go-to" global consulting firm," commented Pierre Shoiry, President and Chief Executive Officer of GENIVAR. "Through their leadership, expertise and creativity, WHW Architects' principals and their team have built and grown an exceptional practice of architecture serving both public and private sector clients. We view this as a great opportunity to accelerate our growth in Atlantic Canada," he added.

"Partnering with the GENIVAR team of experts is great news for WHW; we are happy to be associated with a team whose values are aligned with our own, reflecting a similar dedication to excellence and strong client relationships. This joining of forces signals a strong vision for the future of architecture in our region and across Canada and we are pleased to be part of the realization of this vision. As partners with an organization that has a global presence, we believe the strength of our brand coupled with their outreach will allow us to leverage our respective expertise and resources to better serve our clients," said Keith MacGillivray, President and CEO of WHW Architects.

WHW Architects are leaders in green building design, building science and building information modeling (BIM), as well as in the latest in 3D computer modeling technology.
 

Deloitte & Touche LLP has been engaged to undertake a formal valuation of the Class A and Class B shares of the Company. Deloitte & Touche LLP is preparing such formal valuation in accordance with Multilateral Instrument 61-101 concerning the protection of minority securityholders in certain transactions.
McCarthy Tétrault LLP has been engaged as independent legal counsel to the Committee.
 

Pursuant to the terms of the Asset Management Agreement, Sunstone Industrial provided PIRET with officers and employees and with advisory, asset management and administrative services. Having recently reached a market capitalization of $200,000,000, PIRET's Trustees have determined that it would be beneficial to PIRET and its unitholders to terminate the Asset Management Agreement and internalize management. No fee is payable to Sunstone Industrial as a result of the termination of the Asset Management Agreement.
PIRET will enter into employment agreements with the existing officers and senior managers, who are currently employed by Sunstone Industrial.

PIRET also announced that the first phase of a three phase internalization of property management commenced concurrently with the completion of its purchase of a portfolio of twenty income-producing industrial properties on June 8, 2011.  To date, PIRET has contracted property management to third party property managers.  The first phase of this internalization, which is expected to be completed with in the next 60 days, involves the internalization of property management for a select number of PIRET's single-tenant properties and for certain multi-tenant properties in the GTA. The remaining two phases, which are expected to be completed by December 31, 2011, involve the internalization of property management for PIRET's remaining properties. PIRET's units are listed on the TSX Venture Exchange under the symbol AAR.UN. For more information on PIRET, visit our website at www.piret.ca.
 

A separate publication, RBC Economics Provincial Outlook, assesses the provinces according to economic growth, employment growth, unemployment rates, retail sales, housing starts and consumer price indices.


ECONOMIC OUTLOOK A MIXED BAG IN ATLANTIC CANADA: RBC ECONOMICS

Newfoundland and Labrador to be the second fastest growing economy in Canada this year; Nova Scotia the slowest

Atlantic Canada will continue to show mixed results in 2011, according to the latest Economic Outlook released today by RBC Economics. Newfoundland and Labrador is expected to lead the region in economic growth with a four per cent real GDP growth rate and Nova Scotia is projected to trail with a rate of 1.7 per cent.

"Canada's most eastern province continues to move full steam ahead with the second fastest projected growth rate in Canada in 2011, behind only Alberta," said Craig Wright, senior vice-president and chief economist, RBC. "Data in the early part of this year showed robust growth in construction, exports and employment. The natural resource industry, which has been the central factor in Newfoundland and Labrador's economic performance in recent years, will continue to be a source of strength in 2011."

The RBC report notes that while goods-producing jobs make up only about one-fifth of employment in Newfoundland and Labrador, new jobs so far this year were concentrated in this sector, with the biggest gains in construction and manufacturing. Provincial employment grew by 2.8 per cent in the first quarter alone - the largest quarterly gain in more than 12 years in the province.

Ongoing major project spending is fuelling non-residential investment and strong oil revenues continue to flow, thanks to high crude oil prices, which more than offset the effect of production volume declines.

"We expect these trends to continue through 2011, leading to a four per cent real GDP growth rate in Newfoundland and Labrador," Wright indicates. "Next year, we anticipate growth to slow significantly - to just 1.5 per cent - once the ongoing mining production rebound runs its course."

Strong demand for New Brunswick's export-oriented manufacturing and natural resource sectors will continue to drive economic growth in the province this year. Potash production is benefitting from solid global demand and an even bigger boost will come once the expansion at the Sussex Potash mine begins to operate in 2012.

New Brunswick is also seeing signs of improvement in its somewhat lacklustre domestic economy. Employment has stopped its decline, retail sales are performing reasonably well and average weekly earnings are growing at a good pace in the province.

"Although we project only 1.9 per cent real GDP growth in New Brunswick for 2011, the strength in the export sector should feed through to the domestic economy more meaningfully next year," explained Wright. "Growth for 2012 is expected to accelerate to 2.3 per cent and become more evenly shared across economic sectors via higher employment, earnings and consumer spending."

Manufacturing was a key contributor to Nova Scotia's economic growth last year and has continued to perform well in to 2011. Still, the province's domestic economy had an underwhelming start to the year and early data points to another year of slow growth.

In the first quarter, Nova Scotia's retail sales, housing starts and non-energy exports all remained almost flat, while energy production continued to decline. RBC expects real GDP growth in the province to ease slightly to a pace of 1.7 per cent in 2011 from an estimated 1.9 per cent in 2010.

"Stronger employment in Nova Scotia has been a bright spot in recent data. Jobs grew by 1.1 per cent in the first quarter after remaining essentially flat in 2010," said Wright.

With the start of several new major construction projects next year and an increase in energy production from the Deep Panuke natural gas field, RBC foresees a pick-up in Nova Scotia's growth to 2.0 per cent next year.

Canada's smallest province saw modest but broad-based growth of 2.1 per cent last year, with most industries posting moderate gains. Building investment played a key role in generating economic activity in Prince Edward Island over the past two years, spurred by record levels of government spending.

The latest data showed strong increases in non-residential investment in P.E.I. relative to late last year. Continued government investment and increased demand for agricultural and seafood products will drive growth a little higher. RBC Economics projects growth for P.E.I. to move up to 2.4 per cent this year. However, with the federal and provincial stimulus programs coming to an end, growth is projected to slow slightly to 2.2 per cent in 2012.

"In the first quarter of 2011, P.E.I experienced the strongest population growth in Canada. This solid demographic underpinning will support economic activity over the next two years," said Wright. "The Island's fledgling bioscience and clean energy industries are helping to diversify the economy and should allow P.E.I. to balance out the volatility of its traditional sectors in the longer-term."


RECENT SOFTENING IN BRITISH COLUMBIA'S ECONOMY WILL BE TEMPORARY: RBC ECONOMICS

After hitting a soft patch in the late stages of 2010 and the early months of this year, British Columbia's economy is now forecast to grow at a more restrained rate of 2.6 per cent in 2011, compared to 3.8 per cent in 2010, according to the latest Provincial Economic Outlook report by RBC Economics.

"British Columbia's disappointing economic performance of late will likely be temporary thanks to an expected pick-up in job creation and further inroads by the province's exporters into the Chinese market. B.C.'s exports to China have more than doubled over the past two years," said Craig Wright, senior vice-president and chief economist, RBC. "These export gains in foreign markets outside the United States have brought life back to the provincial forest product sector."

RBC indicates that British Columbia's unemployment rate has eased to 7.9 per cent in April, following a spike in February. However, small gains in employment so far this year have not been enough to make up for the meager performance in other sectors - most notably British Columbia's mining production, which has shown considerable year-over-year declines. After increasing substantially in 2010, retail sales and construction were also soft in the first quarter.

"The rate of population growth in British Columbia has dropped from being the second fastest in the country in 2009 to the slowest among the western provinces," added Wright. "Dim job prospects and very high housing costs in areas like Vancouver are contributing factors to weaker flows of net in-migration in the province."

Looking ahead to 2012, British Columbia's economy is forecast to regain momentum, as strong global demand for commodities and job creation help to re-energize domestic demand and set a slightly faster pace of growth at 3.0 per cent.


SASKATCHEWAN'S ECONOMY BOLSTERED BY MINING SECTOR: RBC ECONOMICS

The mining and oil and gas sector provided a major boost to Saskatchewan's economy in 2010 and this support is expected to continue at a more moderate pace this year according to the latest Provincial Economic Outlook report released today by RBC Economics. Saskatchewan's GDP is forecast to grow 3.8 per cent in 2011.

RBC expects potash production to continue expanding at a rapid pace for the remainder of 2011, with output rising by 25 per cent. While impressive, this rate would be down sharply from increases of over 100 per cent last year, when the industry recovered from particularly depressed conditions in 2009.

"We can expect growth in the mining sector to grow at a robust 4.5 per cent, though this would be down from growth of 19 per cent in 2010," said Craig Wright, senior vice-president and chief economist, RBC. "The other benefit of strong global demand for natural resource commodities is that it is contributing to increasing business investment in the province."

Saskatchewan's economy is also benefitting from a net migration from other areas of the country. RBC estimates this will sustain solid demand for housing. Overall construction is expected to expand by six per cent in 2011.

The province's agricultural sector has taken a direct hit from poor weather conditions last year. Unfortunately, excessively wet conditions have continued into this year delaying the start of the seeding process.

"A return to drier conditions could limit the damage to the 2011 harvest, although, at this point in time, we can only assume a six per cent retracement of last year's 18 per cent decline," said Wright.

Full recovery in the agricultural sector is expected next year, along with continued strong global demand for natural resource commodities. RBC anticipates that this will result in real GDP growth of 4.7 per cent in 2012. Saskatchewan's economic strength is expected to result in the province continuing to have the lowest unemployment rate in the country.



ALBERTA SET TO BECOME THE FASTEST-GROWING PROVINCIAL ECONOMY IN 2011: RBC ECONOMICS

The wheels of growth are picking up the pace in Alberta, as the province gets set to reclaim its position as Canada's fastest-growing economy, according to the latest provincial Provincial Outlook report released today by RBC Economics.

"Not all economic sectors have displayed the same momentum so far this year, but we believe that the expansion is spreading and will bring wider benefits as 2011 progresses," said Craig Wright, senior vice-president and chief economist, RBC. "This will translate into 4.3 per cent growth in real GDP in 2011, the best showing in the province since 2006."

Strong demand for Alberta's bitumen continues to spur tremendous activity in the province's various oil sands projects. This activity more than makes up for the weakness in natural gas and declining conventional oil output. Oil and gas extraction producers are in the midst of a $24 billion spending binge this year, increasing their outlays by almost 18 per cent relative to 2010. In the oil sands alone, a tally of the capital budgets of companies developing various projects shows an increase of 48 per cent since 2010.

"With more and more oil sands projects coming online or reaching higher operating rates, non-conventional crude production is also booming in the province, expanding at a 22 per cent rate in the early part of 2011," said Wright.

In addition to their direct contribution to the economy, the oil sands also act as a catalyst for other segments of the provincial economy. Some of the visible signs of renewed strength are the impressive job gains in comparison to 2010 and the rise in retail sales by 4.4 per cent on a year-to-date basis, second only to the rate in Saskatchewan.

Unlike the boom in the mid-2000s Alberta's economy has yet to attract out-of-province migrants, which has kept the population growth rate and demand for housing fairly soft. Residential construction is one of the few sectors that are still lethargic.

"Growing economic opportunities in Alberta will once again be a magnet for immigrants and migrants from other provinces, which will heat up the housing demand in the coming year," added Wright.

The forecast for Alberta's economy in 2012 will remain relatively stable, with growth in real GDP expected to ease to 3.8 per cent.



MANUFACTURING AND MINING SPUR MANITOBA'S ECONOMY: RBC ENONOMICS

Encouraging manufacturing data early this year augurs well for some strengthening in this sector and for growth in Manitoba's economy, according to the latest Provincial Outlook report released today by RBC Economics. The province will also see some benefit from continuing strong demand for natural resources, which will boost mining activity in the province. Manitoba's real GDP is expected to accelerate to 3.6 per cent in 2011.

"We expect output in Manitoba's manufacturing sector to return to positive growth in 2011," said Craig Wright, senior vice-president and chief economist, RBC. "This is consistent with activity in North America, as it continues to strengthen and enter the expansion phase of the business cycle."

Due to the persistence of extremely wet soil conditions and flooding along the Red River and the Assiniboine River, Manitoba's agricultural sector is unlikely to recover all of the lost production in 2010. The forecast now assumes that the province's agricultural production will reverse only a fraction of last year's substantial 12.5 per cent drop.

Further increases in construction expenditures - led by spending on the Canadian Museum of Human Rights and the CentrePort transportation hub - will also support economic growth this year, albeit to a lesser degree than in 2009 and 2010.

"Manitoba's manufacturing output is expected to continue to grow in 2012 and an assumed return to normal weather conditions will give an additional boost to agricultural output next year," added Wright. "All things considered, we forecast Manitoba's real GDP growth to be sustained at a robust 3.4 per cent pace in 2012."



ONTARIO TO SHOW BEST ECONOMIC RESULTS IN OVER A DECADE: RBC ECONOMICS

Ontario's real GDP is expected to increase by 3.3 per cent this year, marking the province's highest growth rate since 2000, according to the latest Provincial Economic Outlook report released today by RBC Economics. Ontario's economy will move beyond full recovery, as significant recession losses will be entirely recouped by the middle of this year, opening the gate to the long-sought after economic expansion phase.

Ontario's economic growth in the fourth quarter of 2010 came in at a rate of 3.8 per cent, the second fastest rate that the province has produced in almost four years. RBC notes that a number of positive economic indicators point to an even faster pace of growth in the first quarter of this year. In particular, Ontario has made impressive employment gains so far this year, accounting for 60 per cent of all jobs created in the country.

"The improving job prospects in Ontario have provided support to consumer spending and, more importantly, the housing market, where we have seen further increases in home resales and construction this winter," said Craig Wright, senior vice-president and chief economist, RBC. "Housing starts have held up much better than we anticipated, which prompted us to upgrade our call on them for the entire year."

The RBC report notes that although Ontario's car and truck output is up more than 20 per cent this quarter relative to a year ago, the auto industry has been adversely effected by Japan's earthquake and tsunami that occurred in March.

"A number of assembly plants in the province have been affected by disruptions to supply-chains caused by this natural disaster," noted Wright. "We believe that these disruptions will be temporary, but they will nonetheless dampen activity in the industry in the second quarter of this year."

Looking ahead to 2012, RBC expects the U.S. economy to hit its stride, with growth of 3.4 per cent spurring demand for Ontario products and providing significant offset to any weakness in provincial capital spending. The forecast for real GDP growth in Ontario remains solid at 3.1 per cent next year.

The RBC Economics Provincial Outlook assesses the provinces according to economic growth, employment growth, unemployment rates, retail sales, housing starts and consumer price indices.

The full report and provincial details are available online at www.rbc.com/economics/market/pdf/provfcst.pdf.
 

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For example, the west exterior rooms of an office building are subject to a daily periodic fluctuation of heat gain due to the movement of the sun. The load varies from a minimum during the morning, when the western exposure is shaded, to a maximum around 4:00 PM, when the western exposure receives the greatest direct solar radiation. On the other hand, the exposed northern areas of the same building are affected little by direct solar radiation and consequently have a minimal external load. A zoned HVAC system compensates for the differing heating and cooling needs of these west- and north-facing areas. 

The need for cooling is caused by the heat load that is placed on the building by the weather and the occupants of the building. Outdoor variables include how the building is oriented toward the sun, its elevation, and the local weather patterns. Some indoor variables are the activities and the average and peak activity levels of the occupants in a given part of a building or space. The building's mechanical, lighting, and electrical systems and their usage patterns also affect the heat load. The architectural features and materials in a building contribute to how it stores heat and thus often drive HVAC system selection and configuration. For example, if a structure's façade calls for high proportions of exterior glass, the result will be a high degree of heat gain during hot summers and heat loss in cold climates. 

A zone consists of areas that react thermally over time in a similar fashion and can be controlled from one thermostat. Every building has its own set of characteristics that influence how to make it comfortable for its occupants, but most have some qualities in common. The perimeter sections of a building are generally about 15 feet inward from the outside wall. This area of the building can be designated a perimeter zone. The minimum number of control zones required for a floor will be five: a perimeter zone for each face of the building—north, east, south, and west—and one interior zone. 

Loads on interior zones may fluctuate as a result of people loads. This is especially true in conference and meeting rooms, where separate zoning may again be required. Some occupants may request and be willing to pay for separate zoning of their offices, even when zoning may not be essential for good performance. Zoning is required for satisfactory HVAC performance in most buildings and should be provided for all locations where the load fluctuations, expressed as percentages of the total maximum design load, are great. 

Calculations of theoretical heat gains may indicate that zoning is essential. However, a heat gain from solar radiation through glass often does not constitute an immediate load on the cooling system. Radiant energy received by the room's solid surfaces must be absorbed and then transferred as convective heat to the room air before it becomes a part of the load on the air-conditioning equipment. The resulting time lag ultimately causes the heat to be released at a lower and more uniform rate than it was received. Such storage effects lessen the need for rigorous zoning and explain why some installations that appear to be inadequately zoned provide satisfactory performances. 

A multizone system heats and cools several zones—each with different load requirements—from a single, central unit. A thermostat in each zone controls dampers at the unit that mix the hot and cold air to meet the varying load requirements of the zone involved. The following steps can be taken to improve energy efficiency of multizone systems: 

• Reduce hot deck temperatures and increase cold deck temperatures. While this will lower energy consumption, it also will reduce the system's heating and cooling capabilities.
• Consider installing demand reset controls which will regulate hot and cold deck temperatures according to demand. When properly installed and with all hot deck or cold deck dampers partially closed, the control will reduce the hot deck and raise the cold deck temperature progressively until one or more zone dampers is fully open.
• Consider converting systems servicing interior zones to variable volume. Conversion is performed by blanking off the hot deck, removing or disconnecting mixing dampers, and adding low-pressure VAV terminals and pressure bypass.

This article is adapted from several courses in BOMI International's Systems Maintenance Administrator (SMA) professional designation. More information regarding this industry credential and how to advance your career is available by calling 1-800-235-2664. 

Arnauld Achard is a capital markets lawyer with specific expertise in debt capital market transactions, derivative products, asset management, credit transactions, and sovereign debts. Until recently, Arnauld was the head of the capital markets practice in Paris and a partner in its finance group at major UK law firm Simmons & Simmons. He has acquired over 20 years' experience, principally in Paris, in capital markets. He advises French banks, corporates and public institutions and international banks in the areas of structured finance, derivatives, funds and regulatory issues and capital markets. Arnauld's expertise will permit Fasken Martineau's Paris office to diversify its platform by offering high quality and specialized capital markets services.

Lubomir Roglev is a corporate lawyer with a practice dedicated to infrastructure, PPPs, M&A (non-listed companies), investments transactions, private equity, and energy projects. In his practice, he has focused on developing a high degree of legal expertise and experience in advising corporate clients (companies, infrastructure or energy investment funds), banks and governments. His expertise will also be most useful in connection with clients and projects the firm has in the Middle-East. Lubomir is also active on the Eastern Europe market. 

"Arnauld and Lubomir are both strong and seasoned lawyers. Their business sense, legal knowledge and books of business represent a huge asset for our firm. And their presence in our Paris office will most definitely benefit their colleagues and all our clients, in Europe and abroad. We are pleased they have decided to join our ranks," said Serge Gravel, Fasken Martineau's Managing Partner in Paris.

The Canada Green Building Council (CaGBC) has awarded LEED Gold certification to the first tower of the residential Le Vistal complex, located on the south shore of Nuns' Island. This is a first in Quebec for a high-rise residential building. Inaugurated in September 2008 by the real estate development company Proment Corporation, Vistal 1 is a 25-storey building with 160 units. The complex includes a second tower, for which Proment Corporation also hopes to obtain LEED Gold certification.

"The criteria for obtaining gold standard LEED certification are very demanding, and we are proud to have attained the objective we set ourselves when we first conceived Le Vistal", said Samuel Gewurz, President of Proment Corporation, one of the pioneers of green building in Quebec.

To obtain LEED accreditation, buildings must be constructed according to six criteria: localization on a sustainable site, efficient management of water, efficiency in terms of energy and atmosphere, conservation of materials and resources, quality of the indoor environment, and innovation in design.

"The project must be finished before the Canada Green Building Council can perform the appropriate checks to ensure the building has been constructed and operates in line with sustainable development standards", explains Louis-Joseph Papineau, LEED AP engineer and VP of Development and Construction at Proment Corporation. The trend for constructing buildings in line with sustainable development standards is only just beginning in Quebec: today, the province has fifty-two LEED projects, and just seven have obtained LEED Gold accreditation.

As soon as the Vistal complex had been launched, its condominiums quickly sold out. Today, the promoter is experiencing similar success with the first two buildings of the green neighbourhood Pointe-Nord, ZUNI and Evolo, and hopes for more of the same with Pavilion Evolo, which is due to be launched this week. Proment Corporation has obtained LEED ND (Neighbourhood Development) Gold certification from the US Green Council Building for this combined residential and commercial neighbourhood. Located on Nuns' Island, on the shores of the St. Lawrence River, the new Point-Nord area, valued at 700 million dollars, offers the best of both nature and urban life, with Downtown Montreal just five minutes away.

Proment Corporation intends to carry on its environmental work by applying the principles of sustainable development to further real-estate projects. "We hope that our success in green building will encourage other developers to go down the path of sustainable development", concludes Samuel Gewurz.

In all, the Corporation will be investing approximately $31 million for its share of these five new projects and will add approximately 300,000 square feet to Plazacorp's portfolio of retail properties. The Ontario and Quebec projects are being developed with joint venture partners.

"We are pleased to be able to continue to grow our portfolio by developing high quality projects that are leased to Canada's best retailers. Our ability to source new high quality development projects distinguishes Plazacorp from most other public real estate entities that are competing to acquire existing or finished properties in a highly competitive and low cap rate environment. Upon completion, these properties will further diversify our asset base and allow us to continue to grow our cash flow and deliver a reliable dividend to our shareholders." said Plazacorp President and CEO Michael Zakuta. 

The REIT also announced that it has entered into an agreement to acquire from a third-party, a three-storey 105 suite apartment building located in Moncton, New Brunswick. Constructed in 2001, the property is well-located, in close proximity to the REIT's other properties in Moncton and will benefit from ongoing operating synergies with the REIT's growing New Brunswick portfolio. The purchase price of approximately $8.2 million represents an acquisition cap rate of approximately 6.8% and will be satisfied in cash. Subsequent to closing which is expected on June 7, 2011, the REIT intends to secure 10 year CMHC financing on the property.

"We are pleased to be extending our presence in both Quebec and New Brunswick as we continue to expand and further diversify our property portfolio," commented Kelly Hanczyk, the REIT's Chief Executive Officer. "Importantly, we believe these recent acquisitions will generate increased cash flows over time as we build critical mass in these strong rental markets." 

The key events that have occurred since December 31, 2010 are as follows:

- Occupancy increased 21% to 65.15% from 53.81% for the three months ended March 31, 2011 and 2010, respectively;

- Revenue for the first quarter of 2011 increased 13% compared to the first quarter of 2010;

- RevPAR increased $7.91 from $67.67 to $75.58, representing a 12% increase for the first quarter of 2011 compared to the first quarter of 2010; and

- The distributable loss decreased from $1.7 million from the first quarter of 2010 to $0.4 million for the first quarter of 2010.

"We are very pleased to see the improvement in revenues, RevPAR and AFFO for the first quarter as compared to the same quarter last year. The increases in Western Canada are very strong and are indicative of the resurgence in drill rig deployments and overall activity in markets where Holloway Lodging REIT has the majority of its hotels. Our on-going efforts to diversify our business base in these markets has also been a contributing factor to our year over year growth," stated Glenn Squires, CEO.

Holloway owns The Northwest Inn and the Super 8 in Slave Lake, AB, the community that sustained significant damage from the recent forest fires. The hotels received little or no damage and are open and our staff are making significant efforts assisting and housing the many workers and residents working on the clean-up and re-building efforts.

Operating Results

The Atlantic Canada RevPAR decreased 10.7% for the three months ended March 31, 2011, compared to the three months ended March 31, 2010. The decrease is attributed to lower occupancy in both downtown Halifax and Truro and the inclusion of Super 8 Windsor which was acquired June 2010. The Windsor Super 8 had occupancy of 31.45% and a RevPAR of $33.64 for the first quarter of 2011. In downtown Halifax, there was a decrease in group and government business and less leisure traffic during the month of March. In Truro, there was a decrease in group business and a slight increase in ADR. Three of the REIT hotels in Atlantic Canada exceeded their fair market share in the first quarter.

The Western Canada RevPAR increased 17.2% compared to the first quarter of 2010. There was solid occupancy growth in most markets especially in Calgary, Drayton Valley, Grande Prairie, Fort Nelson, Slave Lake, and Whitecourt. There were lower rates in Grande Prairie and Slave Lake due to the business mix having been weighted towards crew contracts and in Slave Lake a high proportion of long-term stay business at a discounted rate. The magnitude of the occupancy increases resulted in significant year over year RevPAR gains despite the rate decline. Alberta and British Columbia benefitted from higher demand from a multitude of sources. In Slave Lake, there was continued demand growth due to pipeline and power line construction work. In Fort Nelson, Fort St. John, Whitecourt and Drayton Valley, the markets experienced increases from energy exploration and oil and gas well servicing along with growth from the forestry sector. In Grande Prairie, there has been increased demand across the local economy. Activity surrounding oil and gas well servicing has increased versus the prior year. There are also positive signs from the retail sector such as growth in sales levels and building expansions. In addition, preliminary work related to construction of a new hospital contributed to the higher demand levels. Several of the REIT's hotels in the Western region increased their market share and most achieved in excess of fair share.

RevPAR for the Holiday Inn Express in Myrtle Beach, South Carolina increased 14.2% compared to the prior year. There was growth in both demand and rate as a result of increased leisure and group business.

The REIT operates five full service hotels, which include food and beverage operations, in Calgary, Fort McMurray, Grande Prairie (2 hotels) and Slave Lake. The increase in food and beverage revenue was due to higher revenues in Fort McMurray and Slave Lake. During the quarter, one of the restaurants in Grande Prairie was closed for a month for repairs and refurbishment.

Operating expenses include wages, supplies and overhead expenses such as repairs and maintenance, sales and marketing and administrative expenses related to the operations of the hotels. These expenses have increased $1.5 million when comparing the three months ended March 31, 2011 to the same period in 2010. The increase is primarily due to the increased occupancy in the hotels as occupied rooms increased by more than 20% compared to the prior year. In addition, there were increases in utilities and repairs and maintenance. There was also one additional hotel in 2011 versus 2010, due to the acquisition of the Super 8 Windsor in June 2010. The additional hotel accounted for $0.2 million of the increase in operating expenses in the first quarter.

Property taxes and insurance expenses have increased marginally for the three months ended March 31, 2011 compared to the first quarter of 2010 due to having one additional hotel in the first quarter in 2011 versus 2010. Management fees are based on the hotel revenues which are higher for the first quarter of 2011 compared to the first quarter of 2010. Interest on mortgages and other debt has remained the same for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. The extra interest cost from having one additional hotel was offset by lower interest expense on the rest of the portfolio. In addition, the REIT expensed a $0.1 million deferred financing fee previously capitalized related to a term sheet which was cancelled during the quarter. The total interest on the convertible debentures was $1.2 million for the first quarter of 2011 and 2010 as the face value of the debentures payable remained the same. The total of the non-cash accretion of the discount on the convertible debentures, mortgages and deferred financing fees has increased $0.1 million to $0.8 million for the first quarter of 2011 compared to $0.7 million for the first quarter of 2010, as the non-cash accretion on the convertible debentures has increased. The accretion increases over the term to the maturity dates of the debentures.

Corporate administrative expenses decreased $0.8 million for the three months ended March 31, 2011 compared to the three months ended March 31, 2010, as 2010 included $0.7 million in severance expense related to the departure of its President and Chief Operating Officer and higher legal and consulting fees. During the three months ended March 31, 2011 and 2010, the REIT generated interest income of $0.02 million and $0.04 million respectively from loans receivable. The REIT records the fair value of the Class B LP units and the equity components of its convertible debentures as liabilities. Changes to the fair value of these liabilities are recorded on the income statement. Depreciation and amortization has increased marginally for the three months ended March 31, 2011 compared to the first quarter of 2010.

Distributable Income

Distributable income was ($0.4) million (-$0.01 basic and diluted distributable income per unit) for the three months ended March 31, 2011 compared to ($1.7) million (-$.04 basic and diluted distributable income per unit) for the same period in 2010. Distributable income has improved due to the increase in hotel revenues in 2011 compared to 2010, along with reduced corporate and administrative expenses in the first quarter of 2011. Distributable income will fluctuate due to market conditions, the seasonality in the hospitality industry and the timing of acquisitions and disposals. 

The smart town-within-a-city will be built on the vacant lot of a former Panasonic factory, and will gain its intelligence via infrastructure and services — from IT to energy — from the nine companies. It will support 1,000 households and is set to open in March 2014. It will actually be completed in 2018, the year of Panasonic’s 100th anniversary.

But Panasonic is the biggest star here, using its property donation as cause to show off its portfolio of building, home and cities services. Through these, it wants to demonstrate energy efficiency using measures such as solar power generation and battery storage systems — then replicate success elsewhere in Japan, as well as overseas.

Meanwhile, Accenture will use its prior experience with city and power grid projects handle the creation, design and promotion of services within the town.

The other companies:

• Mitsui & Co. will develop infrastructure (city blocks and real estate) and energy management services.
• Mitsui Fudosan Co. and PanaHome Corp. will handle development projects (e.g. land readjustment), service frameworks and the sale of homes and lots.
• Nihon Sekkei will plan the deployment of energy devices, propose a landscape design and create maintenance guidelines for the town.
• ORIX Corp. will focus on mobility sharing (to reduce carbon emissions) and green lifestyle promotion.
• Sumitomo Trust & Banking Co. will determine environmental real estate values and offer “environmentally-conscious” loans and financing programs, such as for secondary batteries.
• Tokyo Gas will deploy its ”Ene-Farm” household fuel cell systems.

The reason for the 60 billion (approx. $742 million) project? The threat of Asia’s booming population growth. Panasonic says demand for the development of new cities will occur swiftly and at great scale, believing that rolling out a full-scale smart city is a better business move than biding time with pilot projects or technical demonstrations.

Here’s a list of “green” elements under consideration:

• A “green axis” of vegetation through the town
• “Wind paths” that take the wind’s direction into consideration
• Electric vehicle charging and sharing infrastructure
• Unobtrusive solar panels
• Urban planning scenarios that accommodate for all this car sharing and energy storage
• In the home, smart appliances and energy generation and storage hardware
• Energy generation and storage infrastructure for public buildings and places
• Videocamera-based security system throughout the town
• Health: medical facilities, senior centers and a pedestrian-friendly layout

The companies are measuring success by a targeted 70 percent reduction in carbon dioxide emissions (compared to 1990 levels, unfortunately), but the real yardstick is whether citizens will bite, despite all the technological wizardry.

For more information, please visit the Panasonic website

 In a video, a look at the project:

"In today's global economy, we're not so much competing with each other, we're competing with powerful nearby American cities like Boston, New York and Chicago. And we're competing with global giants like London, Paris, Singapore, Hong Kong and Mumbai."

Mrs. Leroux argued that Toronto, Montreal and Canada's other large cities can only benefit by cooperating to present a consistent message about Canada's many strengths and opportunities.

These include a quality of life ranked second in the world by the OECD, the world's soundest banking system, top-ranked education systems, the lowest debt-to GDP ratio in the G8, a diversified economy with a wealth of natural resources, and solid democratic traditions and institutions.

Mrs. Leroux said that while Canada's two largest cities came out of the financial crisis and resulting recession in good shape, they face serious challenges going forward: aging infrastructure; clogged transportation and public transit networks; lagging productivity and innovation; and increasing levels of poverty and inequality.

"Toronto and Montreal are both wealthy, modern cities with too many people who live in poverty," she said. "Both are becoming cities of rich people and poor people, with a shrinking middle class, pushed mostly to the suburbs. This is not healthy. This is not sustainable. This is not the Canada I know."

According to Mrs. Leroux, the rising gap between the rich and poor, combined with the near collapse of the world's financial system, is challenging economic experts to rethink the rules that govern the business world.

This includes influential Harvard Business Professor Michael Porter, who argues in a recent issue of the Harvard Business Review that companies are trapped in an outdated approach to value creation that is narrow, "focused only on short-term financial performance… while missing the most important customer needs and ignoring the broad influences that determine their longer-term success."

For Professor Porter, the solution lies in the principle of "shared value", which involves creating economic value in a way that also creates value for society by addressing its needs and challenges.

Mrs. Leroux told the Toronto business audience, that shared value is a good way to describe Desjardins and its cooperative business model.

"At Desjardins, we define our mission as helping to improve the economic and social-well being of people and communities. We don't work for wealthy shareholders. We work for our 5.8 million members, clients and communities. When they grow and succeed, we do the same in partnership with them. That, to me, is 'shared value'."

Mrs. Leroux also announced that Desjardins will host the International Summit of Cooperatives in Quebec next year to mark the International Year of Cooperatives. She pointed out that the combined revenues of the world's largest 300 cooperatives are roughly equal to Canada's total GDP.

"I think the size, range and diversity of these cooperative organizations will show Canadians that there are real alternatives to the traditional business model. It will also show that cooperation and collaboration can generate economic success and also serve the common good."

"That's a useful lesson for Canada's two largest cities - Toronto and Montreal - as they face the challenges of the 21^st Century. Our two cities may have been bitter rivals in the past, but we are now allies in a fiercely competitive global economy," she added.

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Financial Results

The financial results for the first quarter are summarized below and compared to the same quarter in 2010: 

(i)Excluding a one-time lease termination payment.        

Net income, net income per unit, FFO, FFO per unit, AFFO and AFFO per unit were down significantly quarter-over-quarter due to an unusually large amount of turnover vacancy at Cite Multimedia in Montreal. This is a temporary situation that was fully anticipated. Most of the affected space either has been, or is about to be, re-leased. Once this re-leasing is completed, Cite Multimedia will have a higher level of net rent than Allied anticipated at the time of acquisition in 2007, a considerably improved tenant-mix and a better than normal lease-maturity schedule.

Leasing

Allied leased over 740,000 square feet of space in the first quarter. This extended its weighted average lease term to 5.6 years and reduced the average annual amount of area maturing from 2011 to 2015 to 8.7% of its total rental portfolio.

Allied finished the first quarter with leased area of 92.5%, up 110 basis points from year-end 2010. During the quarter, it renewed or replaced 47% of the leases maturing in 2011, in most cases at net rental rates equal to or above in-place rents. This will result in a an overall increase of 13.9% in net rental income per square foot from the affected space.

Allied completed several large renewals and expansions in its Toronto target market, including

• the renewal of Algorithmic's lease of 55,814 square feet at 185 Spadina Avenue for a term of five years from December 31, 2011;
• the renewal of Publicis' lease of 64,821 square feet plus and expansion of 3,084 square feet for a term of just under 11 years from December 31, 2011; and
• the expansion of Kobo to 36,585 square feet at 135 Liberty Street and 53 Fraser Avenue and Critical Mass to 23,097 square feet at 312 Adelaide Street West.

Allied has moved steadily toward completion of the re-leasing of six contiguous office floors at Cite Multimedia in Montreal, having now leased (i) one and one-half floors to an existing tenant, SAP Labs, for a term of 10 years commencing September 1, 2011, and (ii) two floors to a new tenant, Abitibi Bowater, for a term of 10 years commencing January 1, 2012. Allied is finalizing the lease of two floors to another new tenant for a term of 10 years commencing September 1, 2011, and the lease of the remaining half-floor, along with space on the ground floor, to yet another new tenant for a term of 10 years commencing January 1, 2012. The annual net rental rates achieved or near finalization fully validate Allied's decision in 2010 not to renew the prior lease of the six office floors.

Acquisitions

In addition to the $102 million in acquisitions completed or announced earlier this year, Allied today announced that it has entered into agreements to purchase the following properties for $62 million:

Vancouver

The Sun Tower (100 West Pender Street) is located in Crosstown (between Yaletown and Gastown) at the intersection of West Pender and Beatty Streets, in relatively close proximity to Allied's properties in Yaletown. It is a landmark heritage property with 81,590 square feet of GLA and is fully leased to tenants consistent in character and quality with Allied's tenant base. On completion in 1912, it was the tallest building in the British Empire, known as The World Building, and served as the home of The Vancouver World newspaper. The building was renamed when the Vancouver Sun bought it in 1937 and is still known as The Sun Tower. The building was extensively restored, renovated and re-leased in the past 24 months. It is designated by the City of Vancouver as a Class A Heritage Property.

Edmonton

The Metals Limited Building (10190-104 Street N.W.) is located in the central business district on the southwest corner of the intersection of 104 and 102 Streets N.W.. It is a Class I property with 22,581 square feet of GLA and is fully leased to tenants consistent in character and quality with Allied's tenant base. Built in 1914 to house a warehousing and distribution business, the building on the property was extensively restored and renovated in 2004. It is designated by the City of Edmonton as a Municipal Historical Resource.

Calgary

The Roberts Block (605-11th Avenue S.W.) is located in the Beltline area on the southwest corner of 11th Avenue S.W. and 5th Street S.W.. It is a Class I property with 51,173 square feet of GLA and three surface parking spaces and is 98% leased to tenants consistent in character and quality with Allied's tenant base. Built in 1912 to house three different distribution businesses, the building on the property was extensively restored and renovated in the late 1990s. It is on the Inventory of Evaluated Historic Resources maintained by the City of Calgary.

Closing and Financing

The acquisitions are expected to close in July and August of 2011, subject to customary conditions. The purchase price for the acquisitions represents a capitalization rate of approximately 6.5% applied to the current annual NOI. On closing, all but the Calgary property will be free and clear of mortgage financing. Allied will place first mortgage financing on the Vancouver and Edmonton properties as it deems advisable. The Calgary property will be subject to a first mortgage in the approximate principal amount of $7 million, having a term expiring in February 29, 2012, bearing interest at an effective rate of 4.25% per year.

Rising Values and Liquidity

As part of its preparation for the adoption of IFRS, Allied completed an external valuation of its portfolio at year-end 2009, indicating a value of $1.3 billion, and another at year-end 2010, indicating a value of $1.55 billion. $104 million of the increase over the 12 months resulted from acquisitions, with the remaining $146 million resulting from appreciation in value. In conjunction with its first set of financial statements prepared in accordance with IFRS, Allied completed an external valuation of its portfolio at the end of the first quarter, indicating a value of $1.6 billion. The entire increase over the three months resulted from appreciation in value. In establishing the value at the end of the quarter, the appraiser used capitalization rates ranging from 6.3% to 8.5%, with the high-point being the capitalization rate associated with 151 Front. The weighted average capitalization rate for the portfolio was 7.2%.

The largest single value increase related to 151 Front. Allied took advantage of this by obtaining a commitment from the first-mortgage holder for $72 million in additional first-mortgage financing at an annual interest rate of approximately 5.5% and otherwise on the terms of the current first mortgage.

Allied has maintained a clean and conservative balance sheet. Expressed as a percentage of fair value under IFRS, its debt ratio was 41.6% at the end of the first quarter. Its interest-coverage ratio in the first quarter was 2.4:1.

On closing of the upward financing of 151 Front, Allied's debt ratio will increase to approximately 46.1%. While it plans to use its borrowing power to facilitate portfolio growth and value-creation, Allied fully intends to maintain its conservative approach to financial management.

Value-Creation

Allied accelerated its value-creation activity in the first quarter as part of an ongoing effort to build a value-creation pipeline that, in time, will make a recurring, annual contribution to the growth of its business.

Upgrade Activity

645 Wellington Street in Montreal is an upgrade project that is well underway. Milgram took occupancy of over 30,000 square feet on May 1. Allied expects to complete this project early next year. Allied recently announced two new upgrade projects, one in Montreal, a 530,000 square foot Class I property on de Gaspe in the Plateau area, and one in Vancouver, a 45,000 square foot Class I property on Homer Street in Yaletown. These acquisitions are scheduled to close in June of 2011.

Redevelopment Activity

At 905 King Street West in Toronto, Allied has leased the first 10,000 square feet to a key tenant and is close on the lease-up of the remainder, in all cases at considerably higher than anticipated net rental rates. Allied expects 905 King to become a rental property in the third quarter of this year. With its partner, Perimeter Developments, Allied also initiated the redevelopment of The Breithaupt Block in Kitchener, which is scheduled for completion in 2013.

Intensification Activity

The first phase of Allied's QRC West project involves the restoration of an existing Class I building and the addition of a new, LEED-certified component for combined leasable area of approximately 300,000 square feet. Allied expects to be in a position to commence the restoration of the existing Class I building shortly and is well advanced in negotiations with a prospective lead-tenant for the new component. In addition, Allied is in the process of initiating the approval process for three intensification opportunities in Toronto. QRC West, Phase II, has the potential for 74,000 of GLA, with a significant component being high-value retail space on Queen West. 388 King West and 82 Peter Street, which comprise a site on the northwest corner of King & Peter, have the potential for up to 800,000 square feet of space. 489, 495 and 499 King West, which constitute the best remaining development site at King & Spadina, have the potential for as much as 500,000 square feet of space. At least a year will be required to obtain municipal approval for each project. 

TransGlobe Apartment Real Estate Investment Trust (REIT) announced that it has closed its previously announced offering of approximately $57.5 million of trust units. The REIT had previously agreed to sell the Units to a syndicate of underwriters led by CIBC on a bought deal basis. The closing includes the Units issued pursuant to the underwriters' exercise in full of the over-allotment option.  The net proceeds from the offering of the Units will be utilized by the REIT to fund future property acquisitions, including the previously announced acquisition of seven buildings (known as Parc Samuel Holland) in the City of Québec, Québec, to repay amounts drawn on its revolving credit facility and for general trust purposes. 

Pure Industrial Real Estate Trust (PIRET) announced that it has entered into an agreement to acquire a fully leased single tenant income producing industrial property on a sale leaseback transaction for a purchase price of $3,104,000.

The property is located at 20-30 Milburn Road, Stoney Creek, Ontario, has a total rentable area of 62,098 sq.ft., and is situated on 2.61 acres. The property is 100% leased to a single tenant, Kromet International Inc. who designs and manufactures custom metal components and assemblies. The fully net lease extends until 2021, with contractual rent increases. The purchase price of $3.104 million represents a favorable going-in cap rate (Capitalization Rate) of 8.50%.

The acquisition is anticipated to close prior to July 24, 2011. The purchase price will be satisfied with cash on hand and proceeds from new mortgages financing of $2,017,600, with an anticipated interest rate of 4.5% per annum.

First National Financial Corporation (FNFC) announced its financial results for the quarter ended March 31, 2011. The Company derived all of its earnings from its wholly-owned subsidiary, First National Financial LP), which reported for the first time under the International Financial Reporting Standards. The Company was successful in its objective of increasing origination volumes and growing mortgages under administration in the quarter.

First National Financial's Q1 2011 Summary:

• Mortgages under administration up 11.7% year-over-year to $54.4 billion
• Mortgage originations increased by 26% from the 2010 first quarter to $2.4 billion
• Revenue was $108.8 million, up 32% year-over-year
• Income before taxes decreased 12% year-over-year to $27.2 million
• EBITDA was $29.4 million, a 13% decrease year-over-year
• Dividends declared to common shareholders increased 16% compared to tax equivalent distributions declared by the Company's predecessor, First National Financial Income Fund in the first quarter of 2010
• On January 25, 2011, the Company issued 4,000,000 Series 1 Class A Preference shares at a price of $25.00 per share for gross proceeds of $100 million.

"With continued growth in our mortgages under administration and significant improvement in our mortgage originations from the first quarter of last year, we are pleased with First National's financial results for the quarter," said Stephen Smith, Chairman and President. "Despite increased competition for mortgage product and the resulting tightening of interest rate spreads in the past year, our Company successfully began a new chapter in its history as a dividend-paying corporation and we are confident in our future success."

"We see 2011 as a year of opportunity," said Moray Tawse, Vice President, Mortgage Investments. "With the impact of IFRS and more onerous capital rules for financial institutions, First National sees reduced competition from smaller industry participants. By increasing the use of securitization strategies to fund our mortgages, we believe First National can take advantage of market conditions and continue to grow and profit."

Selected Financial Highlights for First National Financial LP

Notes:

(1)     This non-GAAP measure adjusts income before income taxes by adding back expenses for amortization of intangible and capital assets.
(2)     March 2010 figures restated for the Conversion and transition to IFRS.

Q1 2011 Results
First National's mortgages under administration totalled $54.4 billion, up from $48.7 billion at March 31, 2010, a rate of increase of 12%. This compares to $53.3 billion at December 31, 2010, representing a quarter-over-quarter increase of 2% and an annualized increase of 8%.

The Canadian single-family real estate market proved resilient despite continued economic concerns and government regulatory activity to slow down the inflation of house prices. First quarter 2011 single-family mortgage originations for the Company increased by 29% to $1.8 billion from $1.4 billion in the first quarter of 2010. For the commercial segment, the year began with strong demand, as real estate companies began making new acquisitions. Volumes increased by 45% year-over-year, from $452 million to $655 million. Overall, origination volume increased from $1.9 billion to $2.4 billion, or 26%, from the prior quarter.

The Company securitized a significant portion of its multi-residential mortgage origination in two issuances of the Canada Mortgage Bonds program in the quarter: $135 million in the February 10-year issue and $140 million in the March five-year issue. The Company has expensed most of its origination and hedging costs associated with these securitizations in the quarter, such that the net interest margin revenue will be earned over the next 10 years. The Company believes that its decision to securitize directly will be more profitable than a comparable placement transaction; however, from an accounting perspective, these profits will be earned over a longer term.

Revenue for the quarter ended March 31, 2011 increased to $108.8 million from $82.6 million in 2010. The 32% growth reflects the increased interest revenue on securitized mortgages, particularly floating rate mortgages indexed to the prime rate, which increased from 2.25% in the 2010 quarter to 3.00% for the 2011 first quarter. However, the related funding costs associated with these mortgages also rose, such that the net interest margin on securitized mortgages grew only marginally. The value of higher mortgage servicing revenue and increased origination volumes were offset by tighter mortgage spreads, particularly for delivered placement fees.

Income before income taxes decreased by 12% from $31.0 million in 2010 to $27.2 million in 2010. The decrease is due to interest rate spread compression experienced throughout 2010 and into 2011. As the economic environment has improved, the competition for mortgages has driven mortgage rates down relative to costs of funding such mortgages. These spreads affect the Company's net interest income on securitized mortgages, as well as placement and deferred placement fees revenue. EBITDA decreased by 11% from $33.8 million in 2010 to $30 million in 2011 due to the same factors cited above for income before income taxes.

In January 2011, the Company raised additional capital through the issuance of $100 million of rate reset preferred shares. This potentially perpetual capital will provide the Company with the financial resources to pursue a larger direct securitization program without diluting the current shareholders of the Company.

Determination of Adjusted Cash Flow and Payout Ratio
As announced in the third quarter of 2010, the annual dividend rate of the corporation was increased from the originally disclosed rate of $1.10 per share to $1.25 per share. These rates are after providing for corporate income taxes and can only be compared to the distributions of the Fund if such distributions are adjusted on the same tax basis. The $1.50 distributed in 2010 by the Fund represents approximately $1.08 on an after-tax basis, such that the current dividend rate of $1.25 per share represents an increase of 16% to shareholders. Together with payments on account of income tax, the Company distributed $25.8 million in the first quarter of 2011, $3.3 million more than in the 2010 first quarter on a tax equivalent basis. This additional payout represents a disbursement of an additional $0.06 of adjusted cash flow per share.

For the quarter ended March 31, 2011, the payout ratio was 97%, compared to 76% for the first quarter of 2010. The increase in the payout ratio is a result of increased working capital requirements and the higher dividend rate in 2011 compared to the tax adjusted distribution rate in 2010.

Statement of Adjusted Cash Flow

Note:

(1) These non-GAAP measures adjust cash provided by (used in) operating activities by accounting for changes between periods in mortgages accumulated for sale or securitization. 

Transition to IFRS

For the Company, the Canadian Accounting Standards Board's decision requiring all publicly accountable entities to report under IFRS has meant a significant change in the First National's financial reporting, particularly in accounting for securitization transactions. Under Canadian GAAP, the Company's securitizations were considered "true sales" for accounting purposes. This resulted in the Company recording gains on securitization when these mortgages were sold to various securitization conduits. Under IFRS standards, these securitizations do not meet the definition of a "true sale" and instead are accounted for as a secured financing. Accordingly, the Company's securitizations (through ABCP, NHA-MBS and the CMB) do not qualify for sale accounting. Its deferred placement transactions will continue to meet the criteria for off-balance sheet treatment as the risk and reward associated with the ownership of these mortgages has been transferred to an arms-length institution.

The Company has restated its comparative 2010 financial statements as if IFRS accounting standards had been applied for the past six years. This restatement eliminates all securitization receivables as at December 31, 2009, and puts these mortgages, together with securitization debt related to these transactions, back on the Company's balance sheet.

Additionally, the Company has disclosed a restated statement of income under IFRS for the first quarter of 2010. Generally, this quarter featured large volumes of securitized mortgages and, accordingly, under Canadian GAAP, large gains on securitization were recorded. Under IFRS, these revenues are reversed and replaced with the net interest margin from previously recorded securitization transactions. 

Conference Call and Webcast

The audio of the conference call was webcast live and will be archived on First National's website at www.firstnational.ca. A question and answer session for analysts and institutional investors will be held following management's presentation.

A taped rebroadcast will be available following the call until 12 a.m. (ET) on June 8, 2011. To access the rebroadcast, please dial 416-640-1917 or 1-877-289-8525 and enter passcode 4432558#.

Complete consolidated financial statements for the Company as well as management's discussion and analysis are available at www.sedar.com and at www.firstnational.ca. 

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"Our Lansdowne Park Theatre will provide a state-of-the-art, premium movie experience and we're thrilled to bring it to historic Lansdowne Park," said Dean Leland, Vice President of Studio & Media Relations, Empire Theatres. "This Theatre was uniquely designed to deliver the ultimate movie-going experience and we look forward to opening its doors to the Ottawa community in 2013."

The new theatre will back on to Holmwood Avenue and will be part of the historic Lansdowne Park revitalization effort. The Park will cater to foot-traffic on the Boulevard and will also feature restaurants, shops, Aberdeen Pavilion, a Farmer's Market, seating areas, and a rejuvenated Stadium with an upgraded arena.

"The new Lansdowne Park is going to create a unique retail experience for Ottawa and we are excited to have Empire Theatres be a part of that experience. Empire Theatres' selection of Lansdowne as the first theatre in its chain to have a specially-designed premium guest experience supports their commitment to this development and to the people of Ottawa," says John Ruddy, President and CEO of Trinity Developments and O.S.E.G. partner.

At Empire Theatres Lansdowne Park, the ten auditoriums will feature curved screens for that perfect picture; Dolby Digital Surround Sound for optimum sound; stadium-style seating for unobstructed viewing; and comfortable, wide, rocker-style seats with lots of leg room. Each auditorium will have 100% integrated DLP Digital Cinema Projection providing crystal clear images, as well as RealD 3D capability in seven auditoriums.

In addition, Empire Theatres Lansdowne Park will feature Empire Theatres' very own "Empire Extra" in one of its auditoriums. Empire Extra provides guests with a heightened sensory experience in a special auditorium designed to offer dynamic sound, screen and seat quality. Empire Extra boasts custom-designed multi-channel sound system for the ultimate audio experience; stunning digital presentation on a massive, wrap-around screen; and reserved seating in comfy, high back rockers.

The theatre will include an expansive main lobby including a lounge area; an expanded refreshments area and offering; and large rooms that will be used for community and corporate use. Guests will also be able to purchase their tickets at refreshments for one-stop shopping, as well as online and via a mobile device.

The opening of Empire Theatres Lansdowne Park will provide both full time and part time employment opportunities to Ottawa area residents.

Empire Theatres also has three neighboring theatres in the Ottawa area, including Empire Theatres Orleans, Empire Ottawa 7 and Empire Rideau Centre Cinemas.

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"This is another clear sign of our continuing confidence in the Japan market," explained Mark Norbom, President & CEO of GE Japan. For GE Capital Real Estate, the joint venture is part of a broader strategy of putting its leading global real estate capabilities to work for strategic partners and institutional investors.

Jon Lekander, Global Head of Indirect Investment Management for Aberdeen Group, commented, "Until recently we've been investing in Asian property primarily through third party funds. This partnership illustrates Aberdeen's ability to leverage our relationship network in Asia Pacific to tap unique opportunities like club deals and joint ventures."

"Tokyo residential represents an important segment for us and our clients," said Jonathan Kern, President of GE Capital Real Estate Global Investment Management. "Given our extensive experience in the sector and domain knowledge, we're confident this is a meaningful opportunity."

The JV, which was recently closed, is targeting studio and one bedroom apartment properties in Tokyo. The sector has proven resilient throughout the downturn, providing attractive risk‐adjusted returns. Despite an overall decline in population in Japan, the population of Tokyo continues to grow, making residential investments attractive with stable occupancy demand.

"Aberdeen is an ideal partner for our investment program in Tokyo multifamily residential, given its commitment to Asia," added Grace Chang, General Manager Asia Pacific, GE Capital Real Estate Global Investment Management.

GE has been investing in real estate in Japan since 1998, and the recent earthquake is expected to have no impact on this JV.

Aberdeen, which has been investing in Asian property since 2006, committed to the joint venture on behalf of two Asia Pacific property funds of funds and a separate account it advises.

Puay Ju Kang, Aberdeen's Head of Property, Asia Pacific, added, "We are very pleased to find in GE a partner and manager with a wealth of investment experience in the region, and one who shares our exacting investment approach."

The Tokyo Residential JV is not available for investment.

For more information visit www.gecapitalrealestate.com

To review the data and read the description of the offering, download pdf here. 

CFFO for the rolling 12 month period ended March 31, 2011 of $1.97 per RVS was unchanged from the 12 months ended December 31, 2010. Royalties were $8.2 million for the quarter, the same level as the first quarter of 2010. The net loss for the three months ended March 31, 2011 was $1.6 million or $0.17 per RVS, as compared to a loss of $18.4 million for the same period in 2010, when calculated on a consistent basis.

OVERVIEW OF FIRST QUARTER OPERATING RESULTS

During the quarter the Company commenced reporting in accordance with International Financial Reporting Standards (IFRS). It is important to note that under IFRS our key financial performance measure is CFFO per RVS which is commensurate with the previous distributable cash per unit measure. The net loss for the quarter and the comparative period in 2010 were driven by the accounting for various non-cash items under IFRS. A copy of our interim consolidated financial statements for the quarter with an explanation of these adjustments and a discussion of the impact of IFRS on our financial results can be found on our website.

During the quarter, the Company's increase in fixed royalty fees as a result of the growth in the underlying agent network was offset by lower premium and variable franchise fees due to reduced market activity, which after management fees, administration costs and interest on our long term debt, generated CFFO of $5.7 million which was at the same level as the first quarter in 2010.

"Brookfield continues to generate strong and stable cash flow from operations for investors despite Canadian house price appreciation having potentially peaked for the next year or so - a testament to the strength and structure of our organization," said Phil Soper, president and chief executive officer, Brookfield Real Estate Services Inc. "We're entering a period of more modest house price growth and lower transaction volumes in the Canadian real estate market. Despite these conditions, Brookfield continues to grow and expand its REALTOR® network."

The Company Network

As at March 31, 2011, the Company Network is comprised of 15,449 REALTORS® operating from 665 locations under 394 franchise agreements. The number of REALTORS® during the quarter increased by 141 agents (0.9%) as a result of the January 1, 2011 acquisition of 23 franchise agreements with 247 REALTORS® operating under the Royal LePage and Via Capitale brands, which were partially offset by net organic attrition of 106 agents. The net organic attrition was primarily attributed to the province of Quebec where the introduction of Quebec's new Real Estate Brokerages Act in May 2010 has resulted in dramatically fewer new entrants to the industry and as a result the attrition of agents that brokers experience as low producers exit the industry is not being replaced as quickly.

Outlook

During the first quarter, low interest rates and a recovering economy continued to spark activity in Canada's housing markets. Country-wide, average home prices increased, with the national average price of a detached bungalow rising 4.3 per cent year-over-year to $341,355, while standard two-storey homes rose 3.5 per cent to $379,388 and standard condominiums rose 4 per cent to $237,919.

On May 9^th, the Canadian Real Estate Association revised its 2011 forecast predicting that national sales activity will now decline 1.3 per cent from 2010 levels, a slight improvement from the 1.6 per cent decline predicted earlier in February. This revised forecast along with Q1 national average house price appreciation indicates Canada's post-recession recovery is continuing.

"After an unusually active six month winter and early spring period, the number of home sales in Canada is expected to take a small dip in the second quarter of 2011," added Soper. "Continuing economic recovery, and especially job growth, is expected to support activity in the remainder of the year at approximately the same level seen in 2010."

Monthly Cash Dividend

The Company declared a cash dividend of $0.0917 per share for the month of May 2011, payable on June 30, 2011, to shareholders of record on May 31, 2011.

CFFO

This news release and accompanying financial statements make reference to cash flow from operations on a total and per restricted voting share basis. CFFO is defined as net income prior to fair value changes, amortization, interest on exchangeable units, interest on Trust units, income taxes, items related to other income and interests of exchangeable unitholders. CFFO is used by the Company to measure the amount of cash generated from operations which is available to the Company's shareholders on a diluted basis where such dilution represents the total number of shares of the Company that would be outstanding if exchangeable unitholders converted Class B LP units into shares of the Company. The Company uses CFFO to assess its operating results, the value of its business and believes that many of its shareholders and analysts also find this measure of value to them. CFFO does not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies.

Conference Call

Brookfield Real Estate Services Inc. hosted a conference call on Tuesday May 24, 2011 at 10:00 a.m. Eastern Time to discuss its first quarter financial results.

A recording of the conference call is available on the Company's website.