Acquisition of Méga Centre Côte-Vertu

Charter acquired Méga Centre for an aggregate cash purchase price of $36.7 million excluding closing costs on March 30, 2007.

Méga Centre is a commercial retail property located at the intersection of Côte-Vertu Boulevard and Rue Begin in St. Laurent, (Montreal) Québec. The total size of the Méga Centre property is approximately 19.0 acres, including 313,558 square feet of rentable retail space, warehouse space and surrounding lands. Méga Centre was built in 1973 and was substantially renovated in 1993, 1999, 2000 and 2004. Currently, the retail space in Méga Centre is 95% leased to a total of 15 tenants. Approximately 90% of the leased retail space is leased to national and regional tenants, including Brault & Martineau (77,000 square feet), Winners (34,000 square feet), Business Depot (25,000 square feet), Future Shop (30,000 square feet), L'Oreal (23,500 square feet) and L'Aubainerie (30,000 square feet). Approximately 36,000 square feet of basement warehouse space remains vacant.

A 110,000 square-foot Rona-owned home improvement store is located adjacent to the property and acts as a secondary anchor, drawing customers to Méga Centre. The average term to maturity of existing leases is 6.2 years. In the next five years, leases representing the percentage of leased retail square feet set out below will expire:

Charter financed the acquisition of Méga Centre with a standard first mortgage loan in the amount of $27.525 million, secured by the property. The loan is for a 10-year term and is interest-only for the first two years. Thereafter, the loan wil be amortized over a 30-year term. The loan bears interest at an annual rate of approximately 5.3%.

Pursuant to a property management agreement between Charter and Crofton Moore Management Inc. ("Crofton"), Crofton provides property management services for Méga Centre.

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