Royal Office and Canadian Leaseback Complete Financing of 7 Federal Office Properties

On October 31, 2007, in a landmark transaction, Royal Office Finance Limited Partnership together with Canadian Leaseback Limited Partnership completed the acquisition, financing and 25-year leaseback of seven federal office properties located across Canada with approximately 3.4 million square feet of prime office space. The transaction had an aggregate value of approximately $1.4 billion.

This landmark transaction is significant because it is the first transaction whereby the acquisition of such a large real estate portfolio closed concurrently with a private placement bond financing. The bond financing component of the transaction involved the issuance of 5.209 per cent Series A Senior Secured Bonds in the aggregate principal amount of $1,238,100,000 with a rating of AAA from Standard and Poors.

Royal Office Finance Limited Partnership, Canada Leaseback Limited Partnership and Larco Investments Ltd. was represented by Borden Ladner Gervais LLP, with a team comprised of Morton Gross, Frank Callaghan, Noella Milne, Larissa Tkachenko, Stephen Redican, Gus Karantzoulis, Brennan Carroll, Carolyn Wainman, Jason Aurini, Shane Pearlman, Paul Simon, Will Wallace, Alexander Singh, Rosa Mauro and Angela Lin.

The Government of Canada was represented by a team from Blake, Cassels & Graydon LLP, which included Robin McGillis, Norm Saibil, Bob Macdonald, Andrea Vabalis, Ted Perlmutter, John Hutmacher, Joseph Grignano, Daniel Kofman, Paul Logan, Richard Dawson and Daniel Ferreira. The Government of Canada was also advised by lawyers in the Department of Justice across the country including Ellen Stensholt, Paul Barrette, Michael Siddons, Christopher Meszaros, Glen Marko and Isabelle Paul-Hus.

The Advisors to the Government of Canada, Bank of Montreal and Royal Bank of Canada were represented by Juli Morrow and Andrew Wiseman at Goodmans LLP.

Bennett Jones LLP represented TD Securities Inc., as lead agent for the bondholders, with a team comprised of S. Paul Mantini, Simon Crawford, Kyle Genga, Juliana Abdo and Sarah Crowe.