DGPFSS

Strength through personnel Le personnel fait la force

DGSSPF

Non-Public Property InvestmentAcquisition of Queensway

Corporate Campus

NPP Board10 Feb 10

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

4210 Labelle Street

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

1223 Michael Street

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

4200 Labelle Street

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

Questions