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capital heavily in our own development and redevelopment projects, because for the most part we feel that' our capital." s the best use of properties are currently undergoing some kind of work, running the gambit from green field development to lighting refur- bishment. Chouinard says the projects have kept the company's team of seven lawyers particularly busy with lease issues. "Redevelopment does add complexity for our leasing team, because if we're doing a major renovation, our tenants need to be moved around or accommodated in temporary space, so we need to negotiate certain changes to their leases to permit us to do the work we want to do, Around one third of First Capital's 163 of Canadian REITs has also made them takeover targets. In January, Dundee REIT purchased rivals Whiterock REIT for almost $600 million, just days after a $900-million takeover of Canmarc REIT by Quebec-based Cominar REIT. Avery expects more merger deals to follow, and says a big pension fund could even be tempted to take a REIT private. Valentini says mergers are a simple way for REITs to diversify their holdings. "It's easier to buy a big portfolio than to build it one by one, which can be a lot of work," he says. Looking outside Canadian borders Another way to diversify, one of his cli- ents found, is to look abroad. Earlier this year, Valentini represented Dundee International REIT on its $400-million IPO and its $1-billion purchase of nearly 300 properties in Germany. Michael Cooper, the CEO of Dundee The continued strong performance " he says. institutional Canadian investors. "We've been hearing more and more about pension funds diversifying outside Canada, in Brazil, the U.S., the U.K., and Europe, cheaper to invest in Europe. We thought this was a great opportunity. International has added $150 million more in assets, and Cooper says it' on the hunt for promising properties. The Since its late 2011 launch, Dundee s still " Cooper says. "It's never been " bulk of the commercial space is currently leased to mail and logistics giant Deutsche Post LG. "It' Cooper says. "But the pricing seems very good. s not for the faint of heart," more willing than ever to take a chance on REITs with foreign assets because of their increasing confidence in the prod- ucts more generally. "Brand name recog- nition is a trend I think we're seeing, Ehrlich says Canadian investors are " " he Tradition Business A of Whether conducting business in Canada or across the globe, Aird & Berlis LLP understands the realities of your work. Our clients benefit from the firm's solid relationships with major institutions, government authorities and renowned national and international law firm affiliates. We combine the depth and strength of Canada's largest firms with the creativity and effectiveness of smaller firms. Count on us for legal counsel from a business perspective.® Eldon Bennett Managing Partner ebennett@airdberlis.com 416.865.7704 REIT and vice chairman of Dundee International REIT, says Dundee's German connections go back to the 1998 purchase of a Canadian company with 3,600 German shareholders, which led to relationships with German institu- tional investors. When the German institutions start- ed selling Canadian assets in favour of better value properties back home, Cooper decided the time was right to give small private Canadian investors a chance to own European real estate that until then was only really available to ntitled-2 1 Brookfield Place, 181 Bay Street T 416.863.1500 F 416.863.1515 Suite 1800, Box 754 Toronto, ON M5J 2T9 www.airdberlis.com CANADIANLAWYERMAG.COM/INHOUSE OCTOBER/NOVEMBER 2012 • 31 8/25/11 12:01:27 PM

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