DGPFSS Strength through personnelLe personnel fait la force DGSSPF Non-Public Property Investment Acquisition of Queensway Corporate Campus NPP Board 10 Feb 10

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 24 Dec 10, NPP completed acquisition of QCC St. Laurent Blvd, 417 / 174 split, Transitway. Property consists of –3 buildings, 285,000 sq ft of rentable space, fully rented –14.5 acres –1,070 parking spots (covered and open) –Approved planning for additional 100,000 sq ft tower $56.8M acquisition cost, net 7.3+% return Funding up to $18M NPP cash (CFCF), commercial mortgage for up to $40M –Return on invested capital >10% Queensway Corporate Campus – Investment

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 4210 Labelle Street

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 1223 Michael Street

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 4200 Labelle Street

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Real estate generally considered an appropriate asset class for pension funds, foundations and endowments Generally represent 10% – 15% of investment holdings NPP funds did not hold real estate as an asset class; all funds were considering NPP Investments (cont’d)

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES NPP has full legal authority to hold real property, in its own right Federal Real Property Act has no application to NPP real property DoJ Memorandum of Law dated 9 Sep 99 NPP Real Property

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES CFCF has long history of borrowing 1998 financing proposal for fitness infrastructure re-capitalization project led to Dept of Finance concerns re NPP borrowing –FAA amended to allow Minister of Finance to establish regulations for all Crown borrowing Dept of Finance has reviewed current proposal –“We don’t have any issues or concerns that would merit a formal Minister of Finance intervention in the matter” NPP Borrowing

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES NPP Purchase of Queensway Corporate Campus PWGSC lessee for 70% of leased space NPP purchase creates a merger of the Leases and Lands – requires replacement agreement for ongoing PWGSC occupancy Dept of Justice lawyers facilitating

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Questions