“Living Shangri-La” Construction Financing Closes

On June 30, 2006, KBK No. 11 Ventures Ltd. and 1100 Georgia Partnership successfully completed a construction loan financing in excess of $280 million in connection with the “Living Shangri-La” Project, a 59-storey project currently under construction in downtown Vancouver that is comprised of 300 residential condominium and live/work units, a Shangri-La hotel and associated retail premises. Living Shangri-La is one of the largest mixed-use residential developments under construction in Vancouver and is scheduled for completion in 2008. The developer of the project is a partnership that includes the Peterson Investment Group and the Westbank Group of Vancouver. The construction financing is provided by a consortium of lenders comprised of HSBC Bank Canada, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Royal Bank of Canada. The administrative agent for the lenders is HSBC Bank Canada.

The administrative agent and the lenders were represented by Derek Winnett of McCarthy Tétrault LLP. Stanley Wong of Koffman Kalef LLP Business Lawyers represented the developer/borrower and the interests of the Peterson Investment Group, and Neil Kornfeld of Kornfeld Mackoff Silber LLP represented the Westbank Group. Rodney Neys, general counsel of Ledcor Properties Inc., and Brock Rowland of Farris, Vaughan, Wills & Murphy LLP acted for the other partners.