Magna Real Estate Investment Trust (The "Magna REIT")

The Magna REIT’s long-term objective is to earn income from a portfolio of income-producing commercial real estate properties in Canada. An investment in Units is intended to provide Purchasers with the opportunity to receive cash distributions originating from the ongoing operation of the Properties

The Magna REIT intends to acquire properties which are currently operating below their full potential and to aggressively manage and reposition the properties with the view to increasing income and, ultimately, value. The Magna REIT’s primary investment objectives are as follows:

(i) to invest in a portfolio of commercial revenue-producing Properties with positive cash flow;

(ii) to enhance income and, ultimately, property value through hands-on property management, re-leasing premises at higher rates to existing or new tenants, and selected capital upgrade programs; and

(iii) to distribute cash flow on a quarterly basis.

The Magna REIT intends to comply with the following general guidelines in acquiring Properties:

(i) focus on investment in retail shopping centres with a value of between $2,000,000 and $5,000,000;

(ii) properties having predominantly national tenants will be targeted;

(iii) properties will be primarily located in Western Canada; and

(iv) the Magna REIT will seek Properties which have a capitalization rate (i.e. will provide an initial annual return on the purchase price) of approximately 8%.