WE'RE EXPANDING OUR INVESTMENT OPTIONS

Wednesday, June 17, 2009

Dear Members and friends,

While financial institutions are apparently reluctant to follow League's lead in creating investment opportunities that align the interests of management with those of investors through positive-interdependence -- what we call "League's Investment Guarantee" -- League is expanding its portfolio of investment offerings, so that its Member-Partners may prudently diversify theirs.

In times such as these, when the economic waters are choppy and safe harbours harder to find, we believe that prudent investment additions and diversification are the best routes to riding out the market storm. To that end, we are launching a new fleet of investment vessels where, as usual, management and investors are in the same boat, sharing the same risks and potential for substantial rewards.

In addition to the IGW REIT and our current roster of Real Estate Limited Partnerships, in the coming weeks and months will be a host of new investments, including:

AVAILABLE IMMEDIATELY

• IGW Residential Capital (ResCap) LP -- The ResCap LP is focussing on Canadian residential real estate. Two condo-approved properties have already been rolled into this new REIT pool, and pending conversion approval, a third apartment -- the Wellington Suites in Hamilton -- is also slated for transfer from the IGW REIT to the ResCap LP. The individually-titled condo suites are expected to sell at prices well above the costs of acquisition and condo-conversion.
• IGW Segregated Debt (SegDebt) LPs — The IGW Segregated Debt 2 LP (IGW SegDebt 2 LP) is being established to acquire high quality Canadian commercial mortgages at a significant discount, predominantly from American institutions. An opportunity has emerged as a result of such institutions being motivated to sell and price these assets as if they had underlying U.S. commercial mortgages. (NOTE: Limited investment amounts are available to Accredited Investors1 and qualified Alumni Members2 only.)

COMING SOON - Keep an eye on your inbox for more information!

• IGW MIC (Mortgage Investment Corporation) -- The IGW MIC will enable League's Member-Partners to invest in a large, diversified pool of mortgages (secured by real estate, of course), rather than in the properties themselves. Because of the pool's size and diversification, any default of a single mortgage will be lessened by the better performance of all the others. And because the IGW MIC is not publicly traded, it is protected from stock market volatility as well.
• IGW Energy Capital LP -- In partnership with Enerpro Systems Corp., an energy efficiency firm, this limited partnership will invest in the acquisition, installation and operation of energy-saving equipment in League-managed properties, as well as those in non-League buildings. Returns are generated by reducing the heating and cooling expenses of the buildings, as well as earning the pool a portion of the energy savings created.
• IGW Cash Management Fund LP -- Initially created as a place for League to deposit its own short-term cash reserves to achieve a better return, the IGW Cash Management Fund will offer League's Member-Partners a place to temporarily "park" their capital for returns higher than so-called "high-interest" chequing or savings accounts. A special feature of the IGW Cash Management Fund is that capital can be redeemed within 72 hours.

Of course, we will continue to create other single-property Real Estate Limited Partnership investment opportunities (including the upcoming Eagle Landing and Place Canadienne LPs) and structure them to have the potential for a tax-deferred rollover into the REIT when each project is complete. Such a structure offers Member-Partners participating in a RELP to swap their LP units for REIT units without triggering a taxable gain, get some of their original investment out to re-invest, and continue to receive REIT distributions in the meantime. To our knowledge, League is the only syndicator offering this opportunity for maximum growth potential coupled with a completely tax-deferred exit strategy.

As always, we stand behind what we do. We look at all potential outcomes and determine which brings with it the greatest potential for both capital preservation and financial reward in a desirable time frame. Along with that, we make sure we have both the expertise and personnel to do the job right. As the 9th tenet of Our Credo states:

WE BELIEVE that every investment project we initiate must succeed. Accordingly, we will not engage in any activities that lie outside the competence of our acquisition and management teams, nor will we begin acquisition procedures until we are fully confident in our abilities to negotiate, acquire, and continuously manage the property profitably.

It is the adherence to all the tenets of Our Credo - including this one - that guides all our decision-making on your behalf. We will continue to seek and create the best investments we can for our Member-Partners.

Our aim is not to make money off of you, but to make it with you, earning our profit only after we grow yours. Our share isn't earned through front-loading or back-loading fees, but rather through the results of our own work. We create and manage our own investments - rather than merely selling you somebody else's with the cream already skimmed off. And because of our innovative fee structure, we make our profit alongside you, never before you.

And now, League is expanding its basket of options so that you, our esteemed Member-Partners, can further diversify your assets knowing your best interests are ours as well.

I look forward to writing you again and providing you with details of our upcoming opportunities. Until then, keep well and keep in touch.

Regards,

Reminders...

The State of the Units Report for the REIT is published quarterly in March, June, September and December on this web page. This includes detailed updates on ongoing activities at each property.

Distribution payments for the REIT begin on the 21st day of the month following the day you invest. You need not wait until the next revaluation to subscribe and begin receiving your distribution payment.

Tax slips are issued for Limited Partnership and REIT unitholders by March 31st each year. Please note that electronic filing is not possible for Limited Partnerships less than one year old.

New unit values for the REIT are announced on the last day of February, May, August and November. Complete portfolio reappraisals take place prior to the May and November revaluations. At the February and August revaluations, only those properties that we expect to have changed in value are selected for reappraisal. To review how the revaluations are performed, click here or review the Frequently Asked Questions section of the current Investment Overview available in the Members Area.