Vancouver Real Estate Forum

April 23, 2009

What Does the Future Hold for this Asset Class?

How will the US retail story play out in Canada and BC?

Topic: Retail

Panelists

• Michael Beattie, Grosvenor Americas• Darryl Schmidt, Cadillac Fairview• Geoff Stollery, Best Buy Canada• Bob Tattle, Anthem Properties Group

Michael Beattie

Senior Vice President -Portfolio Management

GROSVENOR AMERICAS

About Grosvenor

Grosvenor is a privately owned property group active in some of the world’s most dynamic cities.

We recognise that our future success as a business is tied to the sustainable growth of the cities in which we have a presence. We have a vested interest in the future shape of the urban landscape and aim to help create attractive and vibrant cities in which people want to live and work.

Grosvenor Group

North American Markets

Americas Year-End 2008 Review

Darryl Schmidt

Senior Director of Leasing, Western Portfolio

CADILLAC FAIRVIEW

One of North America’s largestowners, developers and managers

of prime office, commercial and retail real estate.

Cadillac Fairview Canadian Retail Locations

Cadillac Fairview - Canadian Retail

• Western Portfolio(6): Chinook Centre, Market Mall, Pacific Centre, Polo Park, Richmond Centre, The Bay Centre

• Ontario Portfolio(9): Fairview Mall, Fairview Park, Georgian Mall, Lime Ridge Mall, Markville Shopping Centre, Masonville Place, Rideau Centre, Sherway Gardens, Shops at Don Mills

• TEC Portfolio(4): Erin Mills Town Centre, Hillcrest Mall, The Promenade, Toronto Eaton Centre

• TD Portfolio(1): TD Centre• Eastern Portfolio(8): Cataraqui Town Centre, Champlain Place, Le

Carrefour Laval, Fairview Pointe Claire, Les Galeries d’Anjou, Les Promenades St. Bruno, McAllister Place, Regent Mall

• 28 Retail Centres within Cadillac Fairview’s $16 billion portfolio.

• Retail - 8,896,000 sq. ft. Office - 13,926,000 sq. ft.

Bob Tattle

Vice President Business Development

ANTHEM PROPERTIES LTD.

5,000 APARTMENT UNITS

1,600 CONDO UNITS

4.5 million SQ FT RETAIL

1.6 million SQ FT OFFICE

1,100 SINGLE FAMILY LAND LOTS

110 ACRES INDUSTRIAL LAND

OVER $1.5 Billion IN REAL ESTATE TRANSACTIONS

SINCE 1991:

23 SHOPPING CENTRES700 CONDO UNITS115 ACRES OF LAND2 INDUSTRIAL BUILDINGS2 OFFICE BUILDINGS1 HOTEL

Current Portfolio

Geoff Stollery

Director - Real Estate

BEST BUY CANADA LTD.

QCQC: 29: 29ONON: 56: 56

MBMB: 5: 5

SKSK: 3: 3

AB: 17: 17BCBC: 21: 21 NFLD: 1NFLD: 1

NS: 3NS: 3

PEI: 1PEI: 1

NB: 3NB: 3

Total Future Shop Stores at End of Year 2005: 119Total Future Shop Stores at End of Year 2006: 121Total Future Shop Stores at End of Year 2007: 131Total Future Shop Stores at End of Year 2008: 139Projected Future Shop Stores at End of Year 2009: 142

Future Shop Store Growth

Best Buy Store Growth

QC: 9

ON: 28MB:2

SK: 1

AB: 9BC: 8

NS: 1

Total Best Buy Stores at End of Year 2005: 45Total Best Buy Stores at End of Year 2006: 47Total Best Buy Stores at End of Year 2007: 51Total Best Buy Stores at End of Year 2008: 58Projected Best Buy Stores at End of Year 2009: 63

Store Growth

119 121131

139

4758

4551

0

20

40

60

80

100

120

140

160

FY06 FY07 FY08 FY09

FS STRS BBYSTRS

NORTHWEST ATLANTICChris Wood

• Northwest Atlantic (Canada) Inc. Brokerage is now celebrating 17years as a fully integrated real estate consulting firm specializing in the representation of retail chains and end-users of retail real estate. – Northwest Atlantic acts as an extension of our clients’

in-house real estate department– The founding Principals are still active in client representation and

day to day real estate transactions– Northwest Atlantic employs 21 leasing professionals in its Toronto

and Vancouver offices, including the Principals, a full-time in-house professional demographic department and 8 senior support staff

– Divisions specialize in both outdoor locations and enclosed centres

• Northwest Atlantic continues to operate as a boutique firm representing “best in class” retailers and offering an unparalleled level of customer service.

Real Estate Clients - West

Real Estate Clients - East

Bank of Canada Rate and Fed Funds Rate

Stock Market Indices

Consumer Confidence

Retail Sales

In Retail Development and Retailing-Change is

the Only Constant!

“Change or Die”

Shopping Centre GLA per Capita

•Canada = 14.0 sf / capita

•U.S. = approx. 30.0 sf / capita

• Relatively little competition for retailers in Canada

Retailers and Developers are Faced with the Same Challenges…

The New “Money Reality”...

Developers Need:•$ to Acquire•$ to Build•$ to Finance

Retailers Need:•$ to Purchase Goods•$ to Build-Out Stores•$ to Pay & Retain Staff

“Show me the money”

Financing

• Renovations• New Construction• Mixed Use• Lender Requirements

Vancouver Real Estate Forum Vancouver Real Estate Forum -- April 2009April 2009 Presented By: Darryl SchmidtPresented By: Darryl Schmidt

Pacific Centre - Post Renovation

Pacific Centre – Post Renovation

The Rise - Vancouver

The Rise - Vancouver

Station Square – Metrotown, Burnaby

The future is what we make of it…

Change is the only constant!