E-Delivery

L A K E L A N D C O M M U N I T Y M A R K E T P L A C E 16 LEASING: There will be con nuous marke ng of the storage units. As soon as the main floor is complete, leasing will commence. This will con nue through the construc on period, as soon as space is available, leasing will be done. • The gas Bar and C-Store will con nue to operate during construc on and will provide cash flow to the project. • There is currently no pre-leasing on the retail. The shopping centre to the west of the project is almost 100% leased. With that, and the hospital, the retail is expected to lease up quickly upon substan al comple on. KEY FUNDING CONDITIONS: • Rezoning of the land to permit the proposed project. • QS review and approval of the costs and contracts. • Acceptable lease for the Ver cal Commercial Greenhouse. • Both Equity and Construc on loans to be in place. POTENTIAL RISKS & MITIGATION: • Cost Overruns: • 90% of the Hard Costs will be under contract prior to the first advance. • The balance, $1,526,000, will be covered by the con ngency of $763,350 (50% coverage). • The largest Hard Cost item, Pre-Cast Concrete, is $6,500,000. This will be supplied AND installed by Lafarge. • The General Contrac ng will be executed by Oscar Venoasen through his company, Li-Todd Developments Inc. Oscar is a shareholder in Lakeland Market Place and thus has strong interest in keeping costs within budget. • Infla on: • The meframe for construc on to occupancy is rela vely short at 9-10 months. Infla on and long-term interest rates appear to be stabilizing. An addi onal 0.50% increase in the Prime Rate would incur addi onal costs of $100,000 per year which is well withing the So Cost Con ngency of $500,000. • We have been quoted "current" rates by BMO at 7.0% to 8.0% for permanent financing. Rates could in- crease to 9% and a mortgage of $21,000,000 would be available with 1.27X DSC and 53% LTV. PROJECTED INVESTOR RETURN: The Return on Investment (ROI) is calculated using the original investment of $3,600,000 + 50% of the project profit divided by the original investment. The Internal rate of Return (IRR) calcula on is based on an investment of $3,600,000 in Month 1 with full payout in Month 15 through long term financing. EXIT: Conven onal long-term financing for approximately $24,000,000 will be available. The Loan to Value would be 68% with 1.21X DSC. JV OPPORTUNITY

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