Dundee Acquires Six Calgary Office Buildings from Brookfield

The Brookfield Properties Consortium completed the sale of six office properties in Calgary, Alberta on June 15, 2006 to a subsidiary of Dundee REIT for a total consideration of $216.5 million. The six properties were acquired in 2005 as part of the Consortium's acquisition of the O&Y REIT. The Brookfield Properties Consortium consists of BPO Properties Ltd., the Canadian-based subsidiary of Brookfield Properties Corporation, and two institutional investors, one of which is a subsidiary of CPP Investment Board.

The six office buildings included McFarlane Tower, 840 – 7th Avenue SW, AltaLink Place, Mount Royal Place, Franklin Atrium and the Franklin Building and comprise a total of approximately 822,000 square feet of office space in Calgary. As part of the transaction Dundee REIT assumed approximately $22 million of mortgage debt from The Manufacturers Life Insurance Company and obtained approximately $100 million of mortgage financing from GE Real Estate.

BPO Properties was represented by D. Cameron Black, vice-president, legal counsel, and the Consortium was represented by Blake, Cassels & Graydon LLP with a team led by Rick Dawson that included Davis Foth and Lindsay Keele. Dundee REIT was represented by Osler, Hoskin & Harcourt LLP with a team headed by George Valentini that included Sherri Fountain, Rod Davidge, Kevin Ackhurst, Craig Harkness and Stella Di Cresce. The Manufacturers Life Insurance Company was represented by Katherine Kowalchuk of Bennett Jones LLP. GE Real Estate was represented by Fred Rubinoff and Jamie Orzech of McCarthy Tétrault LLP.