El-Ad Group (Canada) Inc.

El-Ad Group (Canada) Inc.

April 17, 2007 16:13 ET

El-Ad Group Explores Strategic Alternatives for Its Canadian Residential Operation

Unique Portfolio of Approximately 16,000 Multifamily and Senior Lifestyle Units

TORONTO, ONTARIO--(CCNMatthews - April 17, 2007) - El-Ad Group (Canada) Inc. announced today that it is exploring strategic alternatives to surface value in its Canadian portfolio of multifamily and seniors residential properties. El Ad is a North American based real estate investment and development company which, in Canada, owns and operates predominantly freehold interests in high rise residential rental apartments and seniors lifestyle residences in Toronto, Ottawa, Montreal and Quebec city representing approximately 16,000 units.

Given the strong demand by global institutional investors for high quality real estate assets that generate long term, predictable cash flows, the Company has been approached by a number of third parties over the last several months with suggested opportunities for realizing the value created in its portfolio of multifamily and seniors lifestyle residences. As a result, El Ad has retained Brookfield Financial Real Estate Group and TD Securities to identify opportunities to leverage the Company's significant operating platform and management expertise in this real estate sector, which may include a joint venture partnership. The Company has taken this step, recognizing that it is well positioned in the multifamily residential rental sector, one of the most desirable real estate asset classes in the Canadian market, sought after for its low vacancy rates, rental growth in excess of inflation, opportunities for leverage and consistent returns on invested capital.

El Ad's portfolio of residential and seniors' lifestyle residences are well located within four key Canadian markets, with excellent geographic diversity in Ontario and Quebec. In a highly fragmented rental unit market, the size and quality of the El Ad portfolio provides a significant opportunity to establish a leadership position with critical mass in this top performing asset class. The portfolio is currently 98% occupied with opportunities for increasing in place rents.

About El Ad

The El-Ad Group is a fully integrated real estate company that acquires, develops and converts property to condominium titled property, including the world famous The Plaza Hotel development in New York City. In addition, the Company owns multi-family residential, seniors' housing properties and major commercial assets in high density urban locations in Canada and the United States. Its properties in Canada are primarily located in the Greater Toronto Area, Greater Montreal Area, Quebec City and Ottawa metropolitan areas.

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