COLWOOD CITY CENTRE: FULL STEAM AHEAD

Thursday, September 9, 2010

Dear Member-Partners of the Colwood City Centre LP,

I want to share a progress report to bring you up to date on the latest developments with our – and your – Colwood City Centre project.

As you know, this project is LEAGUE’s flagship development limited partnership, and is planned as a new urban hub for Victoria’s western communities. However, because of its size and scope, the project must be planned and built over a 15- to 20-year time-frame. For this reason, our planning and preparation stage is extraordinarily important – and complex. Happily, the team is taking great strides in marching this project forward.

With a total build-out potential of 3.8 million square feet, it’s the third-largest single-site construction project in Canada. But sheer numbers don’t do it justice. Once finished, we will have created a new self-sufficient and self-contained neighbourhood, one complete with residential, retail and commercial facilities, public spaces, and even its own road network.

Our Colwood team, which includes LEAGUE’s Vice President of Residential Development, George Kallergis, continues to work closely with the City of Colwood, meeting regularly to finalize details for obtaining the necessary development permits. He is also working on the disclosure statements with an outside law firm and is preparing the marketing material for the residential sales.

Our development partner – Property Development Group (PDG) – continues to drive to the final goal alongside us. Ken Grassi, Partner and Director of Construction Management, is looking after the retail and office components, while Larry Rank, PDG’s Chairman, is working closely with the two major grocery chains that have expressed interest in becoming anchors in the first phase of the development. Our in-house leasing team is also negotiating with existing tenants such as London Drugs, to integrate them into the new development by moving them into each new space as it is developed so not to disrupt their business. Currently, we are negotiating with a major institutional investor to help fund our construction budget.

The growing size of the team and the talent they bring underlines the commitment of both LEAGUE and of the Property Development Group to the project. We have a team of some 30 professionals from several design and engineering consulting groups working on the project, all of them coordinated by our PDG colleagues. They represent a wide range of disciplines – structural, mechanical, electrical, landscaping, environmental, traffic, geotechnical and architectural, to name a few.

We have travelled a long road together. The same economic turbulence has caused other projects in the Victoria area to succumb to economic pressures. However, because of our ability to move quickly and adapt, we remained afloat. What's more, with the recent easing of credit, we've been more attractive to potential investors.

As I watch these tangible expressions of what is taking place and what is to come – including the architect’s renderings, floor plans and elevations we are now close to the “end of the beginning,” and one day soon we'll be looking forward to the “beginning of the end.” And as we progress, I will continue to share updates with you.

Until then, if you have any questions on the Colwood City Centre LP, your Member Services Manager will be pleased to assist you.

Warmest regards,

Emanuel F. Arruda
Founding Partner
LEAGUE Financial Partners