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Client Services Manager

GTA Flash Report

GTA Commercial Real Estate Investments Continue Record Activity

2012 Year to Date and Third Quarter Highlights

2012 Forum Edition

Issued: November 26th 2012

Apartment and Residential Land investments lead commercial markets in the third quarter, making 2012 year to date the strongest first three quarters on record for the GTA Region.

Total investment volume through the first three quarters of 2012 has reached $10.4 Billion, a new record for the GTA Region, up 13% from the same period in 2011.

Cap Rates continue to compress further, now reaching record lows for the Apartment, Retail and Office sectors. Year to date Cap Rate averages:

The third quarter reported 516 asset sales greater than $1 Million totaling $3.2 Billion of investment volume, the sixth straight quarter exceeding the $3 Billion mark.

Apartment sector 5.5% (-11% vs. 2011)

Retail sector 5.8% (-12% vs. 2011)

Office sector 6.2% (-14% vs. 2011)

Industrial sector 7.6% (+7% vs. 2011)

Apartment Investments Comprised 20.3% of the Overall Market

Vendor

Elad Canada

Starlight REIT

Skyline Group

Starlight REIT

Homestead/Timbercreek/Q Residential

Centurion REIT

Q Residential

Centurion REIT

$281,000,000

$25,775,312

$39,095,000

$9,750,000

1,670

204

316

84

Purchaser Sale Amount # of GTA Units

Apartment transactions posted the greatest dollar volume of all asset classes in the third quarter reaching $652 Million. Compared to Q2 2012 and Q3 2011, total dollar volume increased by 14% and 214%, respectively.

The third quarter was primarily driven by the sale of four portfolios totaling $356 Million. El-Ad Canada’s portfolio sale to multiple buyers contributed $281 Million to the total $356 Million. Refer to table

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GTA Flash Report 2012 Forum Edition

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Midway through the fourth quarter we are already tracking a handful of deals exceeding $20 Million in what is expected to complete a record year for GTA Commercial real estate investments. Some notable deals so far in the fourth quarter are:

On November 8, the largest Residential Land deal of the year, closing in the fourth quarter, is also the largest on record in total dollar volume. Metrus Properties purchased a total of 190 acres from Helmhorst Investments for $175 Million in Vaughan. Development applications have been draft plan approved for a total of 847 single family, semi-detached and townhouse residential units.

On October 5, Kingdom Hotel Investments acquired the new Four Seasons Hotel for $165.4 Million from Menkes.

On November 6, Skyline Commercial REIT acquired 30 industrial and office buildings throughout the GTA from Conundrum Capital for $107.9 Million. Brokered by Primecorp Commercial Realty, the overall portfolio comprising 60 properties and nearly 2.4 Million square feet of commercial space across nine Ontario cities is valued at $242 Million.

No Sign of a Slowdown - Fourth Quarter Activity Remains Strong

Residential Land posted $650 Million worth of transactions in the third quarter. High Rise Land investments alone represented 57% of the sector’s total investments during the third quarter. The sector exceeded $2 Billion in total investment volume through the first three quarters, surpassing 2011 by 21%.

On July 31, brokered by RBC Capital Markets and CBRE Limited, 1 & 7 Yonge Street sold to Pinnacle International for $162 Million and $88 Million, respectively. 7 Yonge Street, currently a surface parking lot and slated for condo development, represents an adjusted price per square foot buildable of $72 based on the anticipated achievable development density of 2.25 Million square feet. The Vendor originally acquired this property in 2000 for a total consideration of $47 Million.

On July 20, brokered by Ashlar Urban Realty, Allied REIT and RioCan REIT partnered to acquire a 1.4 acre assembly along King Street West with frontage on Portland and Adelaide, for $25.5 Million. The prospective intensification will consist of a mixed-use development with condos expected to comprise much of the development.

Another notable Residential Land site to have sold this year occurred on March 29. Brokered by CBRE Limited and DTZ Barnicke, Camrost-Felcorp acquired the old Four Seasons Hotel at 21 Avenue Road for $142.5 Million. Development applications proposed to convert the existing hotel into a mixed-use building and construct two new condominium towers (39 storeys and 10 storeys). Altogether, the development would consist of 886 total residential units.

Residential Land Investments Comprised 20.2% of the Overall Market

On November 1, Sun Life acquired a 50% interest in 333 King Street East for $68.5 Million from First Gulf.

Greater Toronto Area Commercial Market

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* Deals > $1M

** $/SF for Office, Retail, Industrial; $/Unit for Apartment; $/acre for ICI and Res Land

2012 Forum Edition

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GTA Flash Report 2012 Forum Edition

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GTA New Homes Market – 2012 Highlights

Record High Price Gaps Between Low Rise and High Rise

Condo Activity Growth in the 905 Region

New Projects Continue to Hit the Market

May 2012 average Low Rise New Home price reached $607,893, surpassing $600,000 for the first time in history.

As of October 2012, 32% of the total year-to-date high rise sales happened in the 905 compared to 27% for the same period in 2011 and 22% in 2010.

Number of active sites in the 905 has increased every month so far this year.

106 new High Rise project launches year-to-date in 2012, the second most on record. Total new units added to the market from these projects equals 21,729.

Downtown West submarket had 18 new projects that launched between January to October, the most of any submarket this year. This ties 2012 with 2008 for the most launches on record for the period January to October in Downtown West.

9 new condo projects launched in the Highway 7/Yonge submarket, the second most this year of all submarkets. The nine projects were a record for the Highway/7 Yonge submarket and represent 20% of all the projects launched in the submarket since 2000.

Price gap between the average price of a Low Rise New Home versus the average price of a High Rise new home was $177,295 in October, down slightly from the record high of $183,980 in September.

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GTA Flash Report 2012 Forum Edition

Greater Toronto Area New Homes Market - High Rise

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Top 5 Submarkets by October 2012 Sales

2012 Forum Edition

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GTA Flash Report 2012 Forum Edition

Greater Toronto Area New Homes Market - Low Rise

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Top 5 Municipalities by October 2012 Sales

2012 Forum Edition

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GTA Flash Report 2012 Forum Edition