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Hillcore Real Estate and Romspen Joint Venture for $500 Million in Real Estate Investments

20 June 2013, Toronto, Ontario – Hillcore Real Estate Investments Ltd. (“HREIL”) is pleased to announce that it has entered into a JV arrangement with Romspen Real Estate Equities Ltd. (“Romspen”) to build a portfolio of income producing properties through selective acquisitions. The JV’s first acquisition closed in August 2012 when HREIL and Romspen purchased a multi-tenant industrial portfolio. The second acquisition, of a suburban office property, should close by the end of Q2-2013. The initial goal of the JV will be to acquire $500 Million of real estate properties over the next five to seven years.

John Weiler, Chief Operating Officer of HREIL, said: “we are very excited about the HREIL-Romspen JV. We are like minded entrepreneurial groups who want to create value for our investment partners. Romspen has a great reputation as a mortgage lender and is a trusted investment vehicle for thousands of investors. They have a demonstrated ability to raise capital in the private markets where investor appetite for real estate investment opportunities is strong. HREIL prides itself on our track record of delivering strong returns on all investments we have made over the last 10 years and look forward to delivering more great returns to investors in the new HREIL/Romspen JV.”

Mark Hilson, Managing General Partner for Romspen, said: “Expanding our business into real estate equity was a natural extension from our core mortgage investment business. Building the relationship with HREIL represents a solid strategic fit for Romspen. We now have an experienced asset management group to partner with on real estate acquisitions which will create more investment options for our investors while allowing us to maintain our operational focus on the mortgage fund. We really like the principals at–HREIL as they know how to close acquisitions and create value post-closing.”

About Hillcore Real Estate Investments Ltd.

Hillcore Real Estate Investments Ltd. (“HREIL”), formerly known as Abacus Real Estate Investments Ltd. (“AbREIL”), is the real estate investment and asset management division of the Hillcore Group, specializing in acquiring properties of all asset types. Through management and repositioning initiatives, HREIL offers its principals and partners attractive returns. HREIL’s primary goal is to create a diversified portfolio of income producing real estate properties across Canada. The assets in its portfolio currently include industrial retail and office properties. Target acquisitions include assets with historically strong and stable cash flows or unique value-creation opportunities. HREIL currently owns 42 properties across Canada. HREIL is committed to pursuing new acquisitions across Canada and maximizing the performance of investments.

The Hillcore Group is a leading independent Canadian investment and advisory firm, invested predominantly in the life sciences, real estate, seniors living, financial, and energy sectors. The firm has more than 40 employees based in three offices – Toronto, Vancouver and Montreal. In addition, the portfolio companies employ more than 1,700 people throughout Canada. Entities under management have an asset value in excess of $3.1 billion, as of December 31, 2012. Since 2005, Hillcore has completed acquisitions, directly or indirectly through various investment funds, with an aggregate asset value in excess of $5.5 billion, including $690 million in 2012 alone.

About Romspen Real Estate Equities Ltd.

Romspen Real Estate Equities is owned and managed by the principals of Romspen Investment Corporation (“Romspen”). They have a long term track record of successful mortgage investing in North America. With its origins in the mid-60’s, Romspen is one of the largest non-bank commercial mortgage lenders in Canada. Investments are principally comprised of commercial and industrial first mortgages primarily on Canadian properties with limited exposure to select US markets. Romspen provides customized mortgage solutions for term, bridge and construction financing in amounts up to $100 million. The investment mandate of the Romspen Mortgage Investment Fund, of which Romspen is the manager, is focused on capital preservation, absolute long term returns and consistent performance. Mortgage underwriting is highly disciplined with loan-to-value ratios of approximately 65% across a diversified asset pool of short term mortgages, typically less than three years. The current mortgage portfolio exceeds $1 billion. Over the past 10 years, Romspen has invested $2 billion in over 600 mortgage loans and has consistently earned average annual net returns of approximately 9%. Romspen’s investors include high net worth individuals, foundations, endowments and pension plans.

For further information regarding Romspen please consult the website: www.romspen.com

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