Acquisition of Camwood Portfolio

Acquisition of Camwood Portfolio

OverviewOverview

Eight redeveloped Class I buildings, 230,209 sf, 92.2% leased at closingTwo Class I buildings in redevelopment, 55,225 sf, 41.2% leased at closingTotal 285,464 sf, 85.7% leased at closingTwo pieces of adjoining land51 surface parking spacesAll located in Toronto target market

Eight redeveloped Class I buildings, 230,209 sf, 92.2% leased at closingTwo Class I buildings in redevelopment, 55,225 sf, 41.2% leased at closingTotal 285,464 sf, 85.7% leased at closingTwo pieces of adjoining land51 surface parking spacesAll located in Toronto target market

Competitive ImplicationsCompetitive Implications

Increases Toronto portfolio by 18% to 1,894,206 sfReduces large-scale direct competitors from three to two Augments existing concentrations in King West Central, Entertainment District and Downtown EastAugments ability to provide solutions to smaller tenants

Increases Toronto portfolio by 18% to 1,894,206 sfReduces large-scale direct competitors from three to two Augments existing concentrations in King West Central, Entertainment District and Downtown EastAugments ability to provide solutions to smaller tenants

8

Augmentation King West CentralAugmentation King West Central

Up from eight to 11 buildingsUp 12.2% From 586,807 sf to 658,456 sfRichmond-Bathurst Assembly

579 Richmond Street West141 Bathurst StreetAdjoining landTotal land area 27,689 sf

662 King Street West

Up from eight to 11 buildingsUp 12.2% From 586,807 sf to 658,456 sfRichmond-Bathurst Assembly

579 Richmond Street West141 Bathurst StreetAdjoining landTotal land area 27,689 sf

662 King Street West

King West CentralKing West Central

579 Richmond Street West

29,311 sfClassic b&b interior2,568 sf vacant on closing, now leased

579 Richmond Street West

29,311 sfClassic b&b interior2,568 sf vacant on closing, now leased

King West CentralKing West Central

141 Bathurst Street

10,521 sf Classic b&b interior13 parking spacesNo vacancy

141 Bathurst Street

10,521 sf Classic b&b interior13 parking spacesNo vacancy

King West CentralKing West Central

662 King Street West

31,817 sfClassic b&b interior15 parking spaces2,900 sf vacant on closing, 1,415 sf now leased, leaving 1,485 sf vacant

662 King Street West

31,817 sfClassic b&b interior15 parking spaces2,900 sf vacant on closing, 1,415 sf now leased, leaving 1,485 sf vacant

Augmentation Entertainment DistrictAugmentation Entertainment District

Up from eight to 12 buildingsUp 32.8% from 382,890 sf to 508,858 sf312 Adelaide Street WestAdelaide-Simcoe Assembly

208-210 Adelaide Street West200 Adelaide Street West116 Simcoe StreetTotal land area 15,761 sf just off the core

Up from eight to 12 buildingsUp 32.8% from 382,890 sf to 508,858 sf312 Adelaide Street WestAdelaide-Simcoe Assembly

208-210 Adelaide Street West200 Adelaide Street West116 Simcoe StreetTotal land area 15,761 sf just off the core

Entertainment DistrictEntertainment District312 Adelaide Street West

71,795 sfClassic b&b interior12,544 sf vacant on closing, 8,142 sf now leased, leaving 4,402 sf vacant

312 Adelaide Street West

71,795 sfClassic b&b interior12,544 sf vacant on closing, 8,142 sf now leased, leaving 4,402 sf vacant

Entertainment DistrictEntertainment District

208-210 Adelaide Street West

12,330 sfClassic b&b interiorNo vacancy

208-210 Adelaide Street West

12,330 sfClassic b&b interiorNo vacancy

Entertainment DistrictEntertainment District

200 Adelaide Street West

28,024 sfClassic b&b interiorNo vacancy

200 Adelaide Street West

28,024 sfClassic b&b interiorNo vacancy

Entertainment DistrictEntertainment District

116 Simcoe Street

13,819 sfModern interiorNo vacancy

116 Simcoe Street

13,819 sfModern interiorNo vacancy

Augmentation Downtown EastAugmentation Downtown EastUp from five to eight buildingsUp 22% from 399,557 sf to 487,778 sf489 Queen Street EastProperties in Redevelopment

100 Lombard Street145 Berkeley Street

Up from five to eight buildingsUp 22% from 399,557 sf to 487,778 sf489 Queen Street EastProperties in Redevelopment

100 Lombard Street145 Berkeley Street

Downtown EastDowntown East

489 Queen Street East

32,592 sfClassic b&b interior20 parking spacesNo vacancy

489 Queen Street East

32,592 sfClassic b&b interior20 parking spacesNo vacancy

Downtown EastDowntown East

100 Lombard Street

44,600sfPartial b&b interior31.8% vacant

100 Lombard Street

44,600sfPartial b&b interior31.8% vacant

Downtown EastDowntown East

145 Berkeley Street

10,625 sfPartial b&b interiorThree parking spaces80% vacant

145 Berkeley Street

10,625 sfPartial b&b interiorThree parking spaces80% vacant

Financial ParametersFinancial Parameters

Capitalization RatesYear 1—7.6% Year 2 and Stabilized—8.3%

Unit CostFinished Buildings—$212/SFUnfinished Buildings—$100/SF

Net Rental RatesFinished Buildings—$17.50/SFAt or Slightly Below Market

Capitalization RatesYear 1—7.6% Year 2 and Stabilized—8.3%

Unit CostFinished Buildings—$212/SFUnfinished Buildings—$100/SF

Net Rental RatesFinished Buildings—$17.50/SFAt or Slightly Below Market

Financial ParametersFinancial Parameters

Vacancy on AcquisitionFinished Buildings—18,022 SF (7.8%)Unfinished Buildings—22,746 SF (41.2%)

Vacancy TodayFinished Buildings—5,887 (2.6%)Unfinished Buildings—unchanged

Vacancy on AcquisitionFinished Buildings—18,022 SF (7.8%)Unfinished Buildings—22,746 SF (41.2%)

Vacancy TodayFinished Buildings—5,887 (2.6%)Unfinished Buildings—unchanged

Financial ImplicationsFinancial Implications

Additional Financing--$22 Million$6 million now secured through $12 million upward refinancing of 312 Adelaide Street West for 10 years at 5.45%Remaining $16 million in first mortgage in progress for year-end closing

Accretive from Day 1Escalating accretion in Year 2

Additional Financing--$22 Million$6 million now secured through $12 million upward refinancing of 312 Adelaide Street West for 10 years at 5.45%Remaining $16 million in first mortgage in progress for year-end closing

Accretive from Day 1Escalating accretion in Year 2