Date Closed

August 24, 2007

Lead Office

Toronto

Value

2.40 Billion CAD

On August 24, 2007, Dundee REIT completed the sale of its eastern real estate portfolio and related assets to GE Real Estate for a total purchase price of approximately $2.4 billion, including cash proceeds of approximately $1.4 billion. The portfolio consisted of properties located principally in Ontario, Québec and Newfoundland.

This deal is considered important because in addition to the complexity of the asset transaction, the equity investment in the REIT could not be undertaken without ensuring that Dundee REIT would not be subject to new tax legislation (the SIFT rules) announced October 31, 2006 and enacted on June 22, 2007 to significantly alter the tax treatment of certain publicly traded trusts such as Dundee REIT. Accordingly, a number of complex reorganization transactions of Dundee REIT were undertaken prior to the investment and in addition, the investment was effected as part of a redemption and transfer by existing unitholders of the REIT.

McCarthy Tétrault LLP represented GE Real Estate, with a team led by Fred Rubinoff.