KILMER BROWNFIELD EQUITY FUND ACQUIRES THREE FORMER INDUSTRIAL PROPERTIES FOR REDEVELOPMENT

Toronto, Canada - June 1, 2010 - The Kilmer Brownfield Equity Fund L.P. announced that it recently acquired three brownfield properties for redevelopment in Toronto, Montreal and Guelph. The Fund, which was established in 2006, is Canada's leading fund dedicated to the redevelopment of brownfield properties in Canada.

In December 2009, the Fund acquired an 11-acre, former automotive parts manufacturing site in Toronto's Long Branch neighbourhood in southwest Toronto (formerly Etobicoke). The site's manufacturing history dates back to the 1950's and the site and surrounding area are impacted by a variety of contaminants from industrial activities. The property was acquired jointly with the Whitecastle New Urban Fund L.P., which specializes in urban infill projects, and will be rezoned for mid- and high-rise residential uses.

Kilmer is assessing the use of more sustainable site remediation solutions, which would treat soils and ground water on-site and promote the re-use of materials on-site. It has been estimated that the particular approach selected for this site could reduce greenhouse gas emissions by 122 tonnes when compared to conventional site remediation techniques. According to David Harper, the Fund's managing partner for Environmental Risk Management, this would be the first full-scale application of this green remediation technology on a brownfield redevelopment in North America. Kilmer also intends to apply the latest Ontario Ministry of the Environment (MOE) regulations, including the streamlined Tier 2 Risk Assessment process, to the site.

Also in December 2009, the Fund acquired a 13-acre, former aerospace manufacturing site in Montreal's borough of Saint-Laurent. The site will be redeveloped into mid-rise residential complexes with 1,000 units. To enable the transaction, Kilmer was able to satisfy the vendor's stringent requirements for risk transfer and performance guarantees. According to Pamela Kraft, the Fund's development manager, this transaction, with a sophisticated U.S.-based, FORTUNE 100 vendor, exemplifies the importance of constructive problem-solving and a well-crafted purchase agreement for the management of risk and responsibilities to promote the redevelopment of brownfields.

In February 2010, the Fund acquired a 9-acre, former distillery, foundry and appliance manufacturing site in Guelph, Ontario. The site will be redeveloped for a mix of high-rise, mid-rise and townhouse residential uses while preserving several important historical elements on the site. The site is strategic to the City of Guelph as it supports its plan to revitalize the historic character of its downtown area while still meeting the objectives of Ontario's Smart Growth intensification initiatives. This site is located within Guelph's Community Improvement Plan (CIP) area and is eligible for various financial incentives to assist in its redevelopment.

All three sites are located within identified urban intensification areas for mixed-use and are well-serviced by public transit. From a sustainability perspective, the mixed-use built form is recognized as the most energy efficient approach.

The Fund is actively examining further brownfield opportunities.

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ABOUT KILMER:
The Kilmer Brownfield Equity Fund L.P. (http://www.kilmergroup.com/brownfield/) is Canada's first private equity investment fund dedicated to the redevelopment of brownfields in Canada. In 2006, the Fund was awarded a Special Brownie Award from the Canadian Urban Institute in recognition of its contribution to the advancement of the brownfield industry in Canada.