bcIMC Acquires Units & Debentures for CHIP REIT

On October 3, 2007, British Columbia Investment Management Corporation (bcIMC) through its indirect wholly-owned subsidiary, BFO Acquisition Limited Partnership (BFO LP), completed the acquisition of a majority of the units and all of the 6.0 per cent convertible debentures of Canadian Hotel Income Properties Real Estate Investment Trust (CHIP REIT) by way of take-over bid.

The CHIP REIT units were acquired for cash consideration of Cdn. $19.10 per unit. In addition, the 6.0 per cent convertible debentures issued by CHIP REIT were acquired for cash consideration of Cdn. $1,625.53 in cash per $1,000 principal amount. A total of almost 97 per cent of the units were tendered to the bid. BFO LP intends to complete a compulsory acquisition of remaining units and reorganization of CHIP REIT.

bcIMC is an investment management corporation based in Victoria, B.C. With over $83 billion in assets under administration with global exposure, and supported by industry-leading investment expertise, bcIMC offers fund management services for all major asset classes, including currency and infrastructure investment.

bcIMC was represented by in-house counsel Robert des Trois Maisons and Alex Chui; Lawson Lundell LLP with a team that included Rita Andreone, Jag Shergill, Suzanne Woolley and Lindsay Scott-Moncrieff (corporate), Reinhold Krahn, Len Glass and Marjorie Brown (tax), Valerie Mann (competition) and Blake Cassels & Graydon LLP with a team including Anne Stewart, QC, Brendan Reay, Shlomi Feiner and Francis Chang.

CHIP REIT was represented by Fraser Milner Casgrain LLP with a team including Jeffrey Read, Gary Sollis, Robert Goodrich and Sarah Sidhu (corporate), Barry Zalmanowitz (competition), Jules Lewy, Lori Mathison and Marie-Claire Dy (tax), and Ginny Tsai (real estate). The special committee was represented by Morley Koffman and Bernie Poznanski of Koffman Kalef LLP.

The majority unitholder Belkin Enterprises Ltd. and certain of its affiliates were represented by Ian Webb of Borden Ladner Gervais LLP.

Bentall Capital LP and Avington Financial Limited acted as financial advisors to bcIMC. Georgeson Shareholder Communications Canada, Inc. acted as information agent for the offer.

CIBC World Markets acted as financial advisors to CHIP REIT.


Valerie C. Mann Jeffrey A. Read Sarah Sidhu Marie-Claire Dy Brendan D. Reay Reinhold G. Krahn Anne M. Stewart Ian A. Webb Francis Chang Suzanne Woolley Gary R. Sollis Barry Zalmanowitz Leonard A. Glass Robert A. Goodrich Rita C. Andreone Jules Lewy Lori Anne Mathison Bernard G. Poznanski Shlomi Feiner Ginny Tsai Jagdeep S. Shergill Marjorie E. Brown Morley Koffman