IGW REIT UNIT VALUE UP AGAIN!

Wednesday, September 1, 2010

Dear Member-Partners and Friends,

I am pleased to report that as of September 1, 2010, the value of the traditional Class AAA IGW REIT Units has risen from $1.004 to $1.015 per unit, an increase of 1.1% since the last re-evaluation three months ago. Distributions remain unchanged at 7.25 cents per unit per anum¹.

It is important to recognize that this is the fourth consecutive quarter that we have witnessed an increase, representing an overall rise of 4.1% since September 2009. This increase in unit value since September 2009, combined with the distribution return, resulted in a combined annual rate of return of 11.35% over the past year. It also marks the first time since May 2009 that unit values have surpassed the $1.014 per unit price set at that time.

The new unit value is based on re-evaluations of IGW REIT properties made by our independent experts, Colliers International Realty Advisors, as well as the valuations of investments which are also supported by appraisals.

Analysis and Discussion

To what do we attribute this most welcome news? There are two factors at work here:

First, there is the hard work of our leasing and development teams to add value to the properties and attract new tenants.

And second, this is the result of the IGW Public LP – a subsidiary of the IGW REIT – acquiring an interest in the publicly held Charter REIT (TSX-V:CRH-UN). The appraised value of the underlying Charter REIT assets in excess of IGW Public LP's effective investment in Charter has given an additional lift to the unit valuation of the IGW REIT.

Meanwhile...

Your fellow Member-Partners seem to realize the importance of purchasing REIT Intro Units² sooner, rather than later. In the first five days of the offering, more than $1.4 million worth of REIT Intro Units were purchased.

As you may recall, the Intro Units start off with six-month Income Priority Units that earn distributions of 10% per annum. At the end of the six months, you can either convert to a 5- or 7-year IPUnit at 8% and 9% per annum, respectively, or do nothing and your investment will automatically be converted to IGW REIT Class AAA Units at the lowest value recorded during the six months prior to the conversion date. That means if you had purchased the Intro Units before the August 31 revaluation, you would benefit from the lower unit price, thanks to this price protection feature.

So here's the good news: If you purchase REIT Intro Units before the end of this month or next, your first distribution payment will be deposited to your account on the 21^st of the following month. So, it pays not to delay. For more information about this opportunity, be sure to call your Member Services Manager right away. Remember, all subscriptions received at the end of this month will be eligible for distributions on the 21^st of next month.

In Conclusion:

As I look ahead, I see great reason for optimism for the IGW REIT. At long last we are seeing properties that meet the IGW REIT's stringent criteria come onto the market. The influx of capital invested in the new REIT Intro Units will allows us to take advantage of these acquisition opportunities and add new value to the IGW REIT going forward. My partner, Adam, is working on several potential acquisitions, and I am working on several announcements, which I look forward to sharing with you very soon. I also believe that as the values of Canadian commercial real estate markets continue to steadily increase, we anticipate realizing the value that we worked so hard to create will return in future valuations. Both of these factors provide great potential for further growth within the IGW REIT.

All of this demonstrates that our remarkable progress throughout the recent uncertain economic climate validates our incremental approach to growing the IGW REIT. Throughout it all, we have stayed together on our charted course towards Intergenerational Wealth^TM.

Warmest regards,

Emanuel F. Arruda
Founding Partner
LEAGUE Financial Partners