Greetings Member-Partners and friends!

It's official: IGW REIT is back in buying mode!

I'm most pleased to report that, for the first time in quite a while,we have several properties in various stages of our rigorous due diligence process. Below, I will say more about these potential acquisitions, but first I think it's appropriate to recap our recent history to put the significance of these purchases in a broader perspective.

The Rearview Mirror: Consolidation and Conservation
As you will recall, the IGW REIT withstood the economic storms that battered world markets in September of 2007 and stands strong today. With the liquidity crisis in full effect in October 2008, the stock market crashed, sending its effects rippling though lagging markets and commercial real estate for months thereafter. Then in May of 2009, when the damage was fully assessed, I reported that even during the darkest days the LEAGUE's private IGW REIT managed to beat the TSX Stock Index and the Bloomberg REIT Index by 29.2% and 52.8% respectively (see charts).

This result was a testament to the efficacy of our strategy of buying undervalued properties with positive cash flow, and then improving them to increase both their capital value and their income. This created a "profit buffer" that helped the REIT weather the financial storms. It wasn't until Fall of 2009 that lending activity returned to reasonable, though still tentative, levels.

Before the meltdown, the IGW REIT had been steadily gaining steam (and value) by acquiring on average one property per month! Since then, the IGW REIT has been, relatively speaking, in a holding pattern, during which we consolidated the property portfolio and replaced all the high-rate mezzanine debt with a $22.9 million blanket financing. This saved more than $300,000 in annual interest costs, an amount that could then be directed to further value-generating improvements to the properties. Mention must also be made of the tireless efforts of our acquisitions and development teams to increase lease revenues and decrease costs.

All these efforts-including readjusting the distributions to unit-holders of common REIT units to conserve cash, while simultaneously introducing the Income Priority Units to provide an alternative for those Member-Partners who depended upon their distributions-allowed us to lower the long-term cost of capital, and brought us to the point we are today: back in buying mode.

The Windshield: Preparation for Acquisition
We are currently considering the acquisition of four properties by the IGW REIT. Three are commercial properties (one in Ontario and two in Alberta), and the fourth is an apartment building in British Columbia. As always, before acquisition each must pass through our various stages of analysis and review, and meet the REIT's criteria for cash flow and potential for value increase through our leasing and renovation efforts.

Once we clear each property through our due diligence and we prepare to add them to the IGW REIT's Offering Memorandum, I will write you again with details about each property and its purchase. I will pass along more details to you as they become available...stay tuned!

On a separate but related matter, as of July 29, the IGW REIT increased its indirect ownership of the Charter REIT from 33% to 49.9%. Charter  This entitles the IGW REIT to a larger share of the 11% gross distribution being generated by the Charter REIT's property portfolio (see my report June 7, 2010).

So what does all this mean for all of us who are currently invested or about to invest in the IGW REIT?

The Road Ahead: The Potential for Growth
All things considered, now is the time to invest in one-or all three-of these LEAGUE vehicles: the "traditional" (Class AAA) REIT Units; the recently announced REIT Intro Units*; or the Income Priority Units.

To refresh your memory about the new REIT Intro Units, you start off in a special six-month term of Income Priority Units and earn 10% per annum. That's cash paid to you each month for six months!

Then, once the six-month term is up, you'll have the option of converting to the 5- or 7-year terms of Income Priority Units (currently paying distribution rates of 8% and 9% annually, paid monthly, respectively); or if you do nothing, your investment will automatically be converted to Class AAA REIT Units at their lowest value during those six months. It's like a unit price protection, since you'll begin earning the highest monthly distribution rate possible (at the current distribution of 7.25 cents per unit, per annum) based on the price at the time of conversion, while also watching your investment grow when the value of the property portfolio increases.**

Whether it's your first investment or your fifth, it's never been easier to join LEAGUE and proceed on the path to Intergenerational Wealth for you and your family.

I hope you will call or email your Member Services Manager at 1-877-772-8836 before it's too late to take advantage of the new REIT Intro Units!

On behalf of the investment team at LEAGUE, I am pleased to welcome you (perhaps once again!) as a Member-Partner in LEAGUE. We look forward to many years of association with you as partners in the creation of Intergenerational Wealth™.

Best regards to you and your family.

Emanuel Arruda
Founding Partner