Dear Investor, It has been said that, those who wish to invest wisely invariably turn to real estate

to realize all of their dreams. How true. It is also widely known that more millionaires have been created in the medium of real estate investing than in any other. What is far less well known however, is that by participating in larger real estate deals rather than smaller ones, more money can be made, more quickly, and with nearly the same level of effortor, if one is truly wise, with no effort at all. A person in the business of creating large real estate developments has much to do: locate and investigate the property, conduct feasibility studies, consult with architects and tradesmen, design floor plans, visit city hall, meet with councillors to obtain special permission for variances to local by-laws, employ salesmen to offer the newly built or redeveloped properties, and a myriad of other tasks. -- Much to do for sure, but certainly not so much as to prevent an experienced professional, with a team of talented and able men and women, from accomplishing the goal and collecting the profits over and over again. On the other hand, a person who invests in large real estate developments can gain substantial returns on their money without doing one thing more than putting pen to paper. (Certainly, a wiser person than the first, some might say.) We at Pratten Properties are the first person, and we invite you to invest the next few moments of your time studying this material to determine if you are to be the second. That said, I am pleased to introduce you to our organization and our latest syndication opportunity: Namely, an exclusive investment offering between 15 to 25% R.O.I. with a range of unique tax-sheltering possibilities. In the accompanying booklet, we have been sure to include all the information that we would want to know were it our first time considering partnering in a venture such as this. It has been written plainly and with a minimum of distraction so that the investment opportunity described in its pages will be clearly understood, and stand on its own merits. When you are ready, click this link to download the Executive Summary for our current syndication project. When you have finished reading this informative manual in its entirety, please feel free to contact me personally to answer any questions and to provide you with specific details on our latest syndicated project.

Thank you for your consideration, and best wishes for your financial future.

Sincerely,

ALAN G. PRATTEN President and CEO

4520 West Saanich Road, Victoria, BC V8Z 3G4 www.PrattenProperties.com Tel: (250) 479-7732 Fax: (250) 380-7425

The

Blue Book
of

Real Estate Syndication

Presented by:

Pratten Properties
Copy #

________ of ________

Written and Prepared by: Emanuel Furtado Arruda

IMPORTANT NOTE: The statements herein are based on information which we believe to be reliable at the time of publication, but we cannot represent that they are complete or accurate. This booklet is for informational purposes only and shall not constitute an offer to sell or a solicitation to buy any securities. Important and specific information about a particular investment will be set out in the applicable Offering Document. You should obtain and read the Offering Document before making your investment decision. No offering will be presented except in accordance with the governing securities laws.

All rights reserved including the right of reproduction in whole or in part in any form

No part of this publication or any derivation thereof may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system without the prior written permission of the publishers 2004 Pratten Properties All rights reserved and vigorously defended.
5.13.2005

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 The Importance of Owning Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02 A Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02 Bigger Buildings Bigger Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 Barriers? What Barriers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 Smaller Investments Big Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Private Syndications: The Vehicle of Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 Limited Partnerships: One Form of Group Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . 05 Tax Benefits for the Investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 Selling Your Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 How to Choose the Right Syndicate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 Why Consider Group Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 Choosing Your Investment Leader . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 8 Key Benefits of Private Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 4 Big Reasons to Syndicate with Pratten Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 10 Things You Need to Know about Pratten Properties . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 The Team LeadersProven Real Estate Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 The Game PlanHow we run our Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 Our Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Our Corporate Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Our Acquisition Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Our Investment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Risks and Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Internal Control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 7 Property Investment and Management Risk Controls . . . . . . . . . . . . . . . . . . . . . 38 Property Development Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Taxation Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Management Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Financing Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Prattens Investment Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 Our CredoOur core values and beliefs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Performance & Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Investments Offered & Services Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 Member-Partnership & Friendship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Our CommitmentEthical Standards and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 Knowledge & Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2 Conscientious Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 Investment Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Speak with us. Personally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Dear fellow Investor, Not since the Second World War has mankind seen such uncertain and unstable times (I know, because Ive lived through them all). Today, the threat of global terrorism makes the economic instability caused by the recession of 1991, and the crash of the Japanese economy in 1999 look like a cakewalk. As if that werent enough, the tech-stock induced disintegration of the stock market left a trail of nervous investors in its wake. As for these skittish investors left still speculating in the markets; you wouldnt want to partner with such Nervous Nellies in your business, so why would discerning investors like you and I partner with them in our investment portfolios? It just doesnt make sense. There is a better way, and it certainly isnt new: It is an extensively documented fact that investments in Real Estate have made millionaires of more reasonable men and women than any other investment in history. In fact, if you examine any 10-year period in the last 100 years, you will witness something remarkable. Namely, a 10.8% increase in the value of Real Estate no matter where in that hundredyear period you choose to begin your 10-year examination.

PRESIDENTS INTRODUCTION

I have staked my career on this fact for the past 40 years. In my long career, first as a builder/contractor, then as a licensed real estate agent and private investor, I have quietly amassed my fortune in real estate all over Vancouver Island and Mainland BC. I have developed and built, bought and held, fixed and flipped, and renovated and redeveloped over 500 substantial properties. Currently, the property management division of my company profitably manages all of my own properties as well as hundreds of units for my select clientele. Now, in the 41st year of my career, I want to share an opportunity to invest in my latest development with you, my fellow sophisticated investor. An opportunity to partner with me, along with my personally-selected team, in large-scale, income-generating syndicated properties. We call them Pratten Properties. Id be pleased if you would take the next few moments to study this booklet and learn how I plan to partner with you and a tight circle of other like-minded men and women in a high-return, limited-risk investment, and offer you returns that are sure to make your accountant blush. When youre through, I invite you to speak with me personally to answer any further questions you may have. When you are ready, click this link to download the Executive Summary for our current syndication project. Each investment stands on its own merits and we encourage you, the investor-partner, to examine them for yourself. Our unique transparent disclosure method invites you to see the basis of our investment decisions for each of our syndications and become part of the process. In essence, you see what we see in every opportunity so you can make an informed investment decision. I am delighted to offer you an opportunity to invest with us in our latest real estate syndication project and the opportunity to gain entry into these highly lucrative investments. I look forward to meeting and speaking with you personally.

Sincerely,

Alan Pratten, President and CEO Pratten Properties

01

THE IMPORTANCE
OF OWNING

REAL ESTATE
It is no secret that the greatest wealth-builder in history has always been investment in real estate. Real estate is more than just a fallback investment during a bear market. And, unlike the paper investments of the stock and bond markets, carefully selected income properties have real long-term value secured by physical assets. Additionally, they are not subject to the wide fluctuations common to stock markets and, when properly managed, they can continue providing a steady return on investment of 15 to 20% per annum even when the real estate market is flat. With mortgage rates at historic lows and vacancy rates in prime areas hovering at 1.5% , investing in high-income properties has never made more sense. So, why isnt everyone investing in real estate? In a sense, most people already are: Tenants pay monthly rents or leases to the owners of income properties in exchange for the use of the space in which they live or conduct their business. In addition, the tenants may pay property management fees, financing fees, mortgage fees, and a multitude of other fees for services that the owners choose to provide in exchange for these fees. All of these tenants (and in the case of commercial properties, all of the tenants clients) are trickling their money up (in the form of monthly rent, lease payments, or maintenance and strata fees, etc.) to provide a return on the investments (R.O.I.) made by the owners of the property. So, although the tenants are receiving benefits from occupying the property, they are not realizing any residual income or tax-sheltering benefits from the ownership of the property itself.

this property to their franchisees at a price that produces a profit every month well in excess of their cost of financing and maintaining the property, but not so much as to make leasing the property unattractive to the occupier. These same franchisees not only paid for their rights to operate their store from McDonalds, in most cases their franchise fees also pay for the investment real estate that they are now leasing from McDonalds as well. Wisely, McDonalds doesnt stop there. They also receive profits from the wholesale sales of food to the franchisee, as well as a portion of the profits of each location in the form of franchising, advertising, and marketing fees. We should all be so smart.

BIGGER BUILDINGS BIGGER PROFITS

Just like McDonalds restaurants, some of the most profitable income properties are extremely large and expensive investments that are leased to other businesses. Office buildings, shopping centres, industrial parks and warehouses, lodging facilities (including hotels, motels and resorts), medical centres, and even power production facilities all fall under the category of commercial real estate. Under the right management, all of these can become excellent income properties. A different form of large and lucrative income properties are occupied by residents rather than businesses. Types of residential investment properties include condominiums, rental apartment buildings, seniors housing, etcetera. The cost to build or purchase desirable income properties like these can range from millions, to tens-of-millions, and sometimes even hundreds-of-millions of dollars, and requires an experienced property management team to operate and maintain them profitably. Indeed property management is a whole other can of worms. It is one thing to have the funds required to purchase or build large investment properties, it is quite another to keep them profitably occupied, maintained and managed year after year. For this reason, many property owners choose to outsource their property management services to management firms that specialize in operating income properties profitably for their ownersof course, this valuable expertise is also provided for a fee. Even so, with the right mix of property, tenant, and property management, large income properties can be extremely profitable and worry-free investments.

A CASE STUDY
When asked what business McDonalds is in, most people would immediately answer selling hamburgers. And although its true that McDonalds has successfully sold billions of hamburgers for many many years, they are most definitely not in the hamburger business. The McDonalds Corporation owns a great deal of the most valuable and coveted income properties all over the world. They in turn lease

BARRIERS? WHAT BARRIERS?

As noted earlier, large profits usually come at the price of large investments. This is fine for the builder or developer who has continually built and sold his developments for a profit and re-invested his earnings into increasingly

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larger projects, but what about the individual private investor? How can the individual investor with limited skills in real estate development, or less than a million dollars in cash, get in on such an attractive investment? Are these highly desirable opportunities reserved only for conglomerates, investment banks, and powerful old money families? Thankfully, the answer is No.

LIMITED PARTNERSHIPS: ONE FORM OF GROUP OWNERSHIP

Although the legal structure of a syndication can take many forms, it is generally accepted that a Limited Partnership is one of the best forms of group ownership of real estate investments. It offers all of the financial rewards and tax benefits of individual ownership without the burden of management responsibilities, liability for principal debt, or large individual cash investments. Basically, the setup is as follows: A group of investors is formed to purchase and control a specific property. Each contributes what he or she wishes toward the purchase, usually in easy-to-divide units, such as 10%. One of the members of the group, or even an outsider, becomes the General Partner for the group and the investment. Chosen for his expertise, the General Partner is granted all decision-making powers for the investment. This includes management, though he may hire a professional management company rather than handle it himself. Everything that happens to the investment is at the sole discretion of the General Partner. He decides when major expenditures are needed, but will usually attempt to get a group opinion first. He determines the optimum time to sell or trade, and establishes the selling price. It is obvious that he must keep the goals of the group in mind at all times. Now, the catch: As General Partner, he also assumes total liability for the investment. Were a property to get into major financial difficulties, the cost (or loss) is his responsibility. The remaining partners in the group are Limited Partners. Their financial obligation is limited only to their initial investment. If the whole investment goes bad, the most they stand to lose is their initial investment. This raises the question, Why would anyone want to be the General Partner? First of all, the likelihood of a properly selected and managed property going bad, is remote. In addition, the General Partner is usually paid for his services, and he also has a piece of the action, so, it is in his best interest to make the venture as profitable as possible. More often than not, real estate brokers will serve as General Partners. A experienced investment realtor knows the market, and can locate the right investment for the group. When it is time to sell the investment, the realtor will likely represent the group as exclusive agent. This is added incentive for him to serve as General Partner and to keep up or increase the value of the property.

SMALL INVESTMENTS BIG OPPORTUNITIES

There are already mechanisms and legal frameworks in existence which allow like-minded investors to band together in order to purchase and control substantial investment properties. Of course, each carries its own advantages and disadvantages. A public newsletter published by BDO Seidman, LLP. Accountants and Consultants asserts:
The syndication process aggregating capital from a group of investors to acquire property is seeing new popularity as real estate increasingly is viewed as a fourth asset class in addition to stocks, bonds and cash. Real estate investment trusts (REITs) are an attractive way to invest in real estate, but their publicly traded shares are subject to a significant degree of price volatility that many investors seek to avoid. By contrast, shares in a private syndicate, typically real estate limited partnerships (RELPs) or a privately held REITs, are not priced to market on a daily basis and in addition offer the possibility of higher returns than publicly managed real estate. Finally, private syndicates offer some tax savings unavailable when investing in a public company.

PRIVATE SYNDICATIONS: THE VEHICLE OF CHOICE

When you invest with a private real estate syndication, you are pooling your capital with that of other qualified investors for the purpose of investing in larger and more lucrative real estate projects. This affords the lone investor an opportunity to participate with an organized group of like-minded investors in the ownership of a piece of revenue property that is too much to handle singly or in a joint venture with just one or two others. Real estate syndicates own income-generating residential or commercial real estate and are secured by tangible and quantifiable assets as collateral. This characteristic is untrue of many other investments and provides added security for your investment. Additionally, investing in private real estate syndications gives the individual investor the ability to achieve extraordinary profits with no liability for debt.

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TAX BENEFITS FOR THE INVESTOR

One of the best features of the limited partnership form of investing is that, properly structured, a limited partnership offers the investors all the advantages of sole ownership without the drawbacks, such as double taxation. It is able to pass all tax benefits on to the limited partners. For example, a limited partner investing 10% of the capital that was raised to purchase the property, becomes a 10% owner of the investment. In each reporting period, he receives a proportionate share of the total profitsin this case 10%. At the end of each year, he receives a tax statement from the accountant for the group, so he is able to take 10% of any tax shelter or depreciation benefits resulting from the ownership, and apply them to his overall tax situation as well. When the property is sold or refinanced, he receives 10% of the total proceeds, after closing costs or refinancing fees, and paying the General Partners share. In short, he has all of the advantages of the individual ownership combined with the advantages of a management-free investment.

put in the same investment as an investor who wants a tax shelter with little or no cash flow produced by the property. Obviously, one property cannot offer both. Select a knowledgeable individual to act as your General Partner. A good General Partner will know (or get to know) all of his investment partners personally, in order to group like-minded investors together with the investment and holding period that will best serve their needs. Make sure he also has a vested interest in the venture so that his profit is tied to the success of the investment. You should determine the guidelines as to the operation of the property at the time the group is founded. This includes basic management policies, optimum holding period, etc. Using this vehicle, investors with limited investment capital are able to join with others and share proportionately in the monthly profits from rent, periodic cash disbursements upon refinancing or sale of the property, and tax benefits offered by real estate investments. Without the group, many would not have sufficient capital to become a real estate investor. At the same time, since control is in the hands of the General Partner, the chance of painful disagreements among the investors is minimized, and the overall stability of the investment is enhanced.

SELLING YOUR SHARE

When a partner decides he no longer wishes to retain his share in the partnership, he is free to seek a buyer for it. Selling a portion of a limited partnership share in a real estate holding is not much different from selling the property itself. So long as he adheres to applicable securities laws, the seller offers his proportionate interest to potential investors at what he considers to be fair market value. This will no doubt be at a price higher than he originally paidafter all, it is still a real estate investment that is appreciating each year. The only difference is that it may only represent a 10% interest in the entire project. Once he has a ready, willing and able buyer to purchase his share at a certain price that is acceptable to him, the other partners will generally have a right of first refusal to buy that share on the same terms and conditions as the offer. Ask your General Partner if there is a buy-back plan to help you cash out quickly in the event of an unforeseen personal situation.

WHY CONSIDER GROUP INVESTMENTS?

There are two primary reasons for considering any group from of investing: First of all, it offers an investor with limited investment capital the opportunity of getting involved in real estate investing and receiving all the benefits of owning real estate (like cash flow, and asset appreciation), as well as the benefit of tax savings that are not available to other types of income (like interest and dividends). In addition, he is able to join forces with others and pool resources. The second reason for joining one of the larger groups is to completely divorce yourself from the task of locating, analyzing, purchasing and managing your real estate investment. The syndicate you join does all of that for you. So, use this brief chapter as a basic background in investment in a real estate syndication. Thats all it was intended to do. Your accountant or lawyer, and well as the leader of the syndication, will be able to answer any specific questions you may have about how your participation in a syndication will benefit your portfolio. If your accountant or lawyer is inexperienced in this field, contact one who is.

HOW TO CHOOSE THE RIGHT SYNDICATE

All members of the group should have the same basic investment goals. An investor who is looking for a high cash flow should not be

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PRIVATE SYNDICATIONS

BENEFITS
How Syndicates Create Wealth for Investors

EIGHT KEY

EIGHT KEY BENEFITS OF PRIVATE SYNDICATIONS

BENEFIT #1: PREDICTABLE REVENUE STREAM
A syndicates reliable income is derived from rents paid for the use of leased properties. A strong property management team can focus on attracting only the most reliable of suitable occupants to the properties. These types of tenants often sign leases for long periods of time, and this in turn creates stable cash flows for the participating investors. In addition, having carefully structured lease agreements serve to further reduce risk.

BENEFIT #5: DIVERSIFICATION OPTIONS

A major advantage of some syndications is that they can enable the individual investor to diversify among a number of different properties or investments. Diversification may well be the most important way to protect against significant losses in any investment.

BENEFIT #6: INCREASED SAVINGS

By pooling the investment capital of a number of investors, even a small real estate syndicate can achieve cost savings otherwise unattainable to the individual investor. (The best legal, tax planning and investment advice dont come cheap.) In addition, all else being equal, larger properties are more cost-efficient than smaller ones, since many expenses are lower on a per unit or square foot basis. These savings translate into significantly more profit being distributed to every investment partner.

BENEFIT #2: UNIT PRICE APPRECIATION

Most syndicates operate along this straightforward and easily understandable business model: By making improvements, the propertys value is increased, and by increasing rents or occupancy rates, higher levels of stable monthly income may be generated. The raised value, and higher incomes are then added to the investors unit value and monthly cash flow distribution.

BENEFIT #7: CASH RESERVES & INCREASED STABILITY

The need for cash reserves is often overlooked when inexperienced investors buy real estate. Syndication can assure that sufficient capital is available to give the investment staying power, and the ability to withstand economic downturns or temporary shortfalls.

BENEFIT #8: EARNINGS TRANSPARENCY

Like public companies, earnings are reported per unit on the basis of Generally Accepted Accounting Principles (GAAP). That way you can compare all of your various types of investments easily and take the appropriate deductions off of your next tax return.

BENEFIT #3: TAX MINIMIZING BENEFITS

Due to the structure of our syndications, the profit on the properties flows through to the investor as if the individual was solely holding the investment. This means you get to deduct a proportionate share of the buildings expenses and depreciation against your income. So, in addition to their profit, the investors receive all of the tax minimizing benefits of holding real estate, as well as the further benefit of having absolutely none of the personal liability risks associated with private ownership of real estate.

THE BOTTOM LINE

Syndicates, over time, have demonstrated a consistent track record of providing the benefits of ongoing current income, the potential for unequalled long-term appreciation, and tax-efficient earnings. They are equities that derive their value from tangible and quantifiable assets, and they have been proven to bring the benefits of balance, diversification, and greater risk/reward efficiency to a broad range of investment portfolios. Whether your investment style is value-driven or growth-oriented, individual or institutional, syndicate participation can clearly be of benefit. So, the question still left unanswered, is: Which syndicate should I join?

BENEFIT #4: TOTAL RETURN

The combination of stable cash income return, capital gains (from unit value appreciation), and tax savings can result in very healthy overall returns for all participating investors. In addition, the groups ownership of tangible assets with established values further reduces risk.

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CHOOSING YOUR INVESTMENT LEADER

Even more important than your decision to leverage the power of your investment within a professionally managed real estate syndicate, is deciding with whom you will invest: Is the syndication team you are considering, experienced in construction? Finance? Negotiating contracts? Buying and selling properties? Does the team have the contacts, skills and experience necessary to bring your project to completion on time and on budget? Is there a proven system in place by which they select the best properties and manage risk? Do they have a management system in place to enhance profitability, as well as the expertise to maximize the investments potential? And most importantly: Are they truly talented, or are they merely technicians? All of these questions must be answered in the affirmative before you invest. You must feel absolutely certain that the team with whom you are investing, is both experienced and talented. If either of these elements is missing, it could mean the difference between taking home a big profit every period, or just breaking even. Lucky for you, youve dialled the right number...

REASONS
to Syndicate with Pratten Properties

4 BIG

WHY INVEST WITH

3. HOW DO YOU SPELL TAX RELIEF?

Are your investments costing you more than they should? Without professional guidance, serious investors can suffer serious tax repercussions. Now more than ever, even the most experienced investors need to have professional advisors working on their side of the ledger. We want to attract the very best investor-partners possible to every Pratten Properties syndication, so we contacted the experts behind the four biggest initials in the accounting business: KPMG. We asked KPMG to devise an array of comprehensive profitmaximizing, and tax-minimizing strategies that would be sure to make even the stodgiest of investors, smile. They succeeded, theyre available now, and yes, theyre all perfectly legal.

PRATTEN PROPERTIES?
Serious investing is best done with serious professionals shielding you from personal liability and exposure to taxation. So, with that said, if youre still looking for reasons to syndicate with Pratten, here are four big ones:

1. ACCESS TO REAL ESTATE SKILLS

Real estate investment is a far more complicated process than might at first appear: Are you skilled in determining real estate values, negotiating favourable purchase agreements, financing the purchase, negotiating leases and managing the property? If not, then the most obvious advantage of our syndicates is that the knowledge and skills of our team of extraordinarily talented real estate professionals whom youll meet, starting on page 24are available to our syndicate member-partners. Our investment leader, Mr. Alan Pratten, has more than 42 consecutive years of experience in the business of real estate investing through many different market climates, and each of his team-members are hand-picked specialists in their respective fields. Together, we know what to do, and even more importantly, we know what not to do with an investment property. Our collective experience has provided us with all the necessary elements to put together incomparable real estate investment vehiclesthe kind that we personally invest in.

4. TAILOR-MADE INVESTMENTS
Are your current investments of the off-the-rack variety? Do they still fit you as snugly as they once did? Theres nothing more embarrassingor more costlythan finding out youre still sporting last-years investments. To remedy that situation, wed like to introduce you to our investment tailor: KPMG At your request, your Pratten Properties Syndication investment can be custom-tailored to suit your investment portfolio. The talented people at KPMG will work with you personally to put our unique profit-maximizing and tax-minimizing strategies to work for you. To ensure that you derive the maximum benefits from your investment, Pratten Properties will retain the services of our financial consultants at KPMG to custom-tailor an investment solution for every one of our qualified investors for a confidential, one-on-one consultation. During your private review engagement, your KPMG investment counsellor will present you with your best choices of investment positions that provide you with options with respect to priority of return, risk, and tax benefits. That means you can choose the balance of risk and return that best suits you.

2. THE BEST POSSIBLE LEGAL COUNSEL

Are your current investment assets vulnerable to a legal attack? Why bother making more money if doing so is going to leave you wide open to litigation? We live in an era when no investor can be without the protection of the best legal counsel, and no matter what your financial situation, no one can afford to make even the smallest of mistakes. Thats why weve taken steps to ensure that the specialists we select to make up our legal advisory committee are also extremely talented. As a result of their hard work and ingenuity, while participating in any Pratten Properties syndication, our syndicate member-partners have ZERO liability for principal debt.

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1 0 THINGS

YOU NEED TO KNOW ABOUT PRATTEN PROPERTIES

HELLO. MY NAME IS ...

If this is your very first time meeting us, there are some things youd probably like to know about us, like: Just what makes you guys so special, anyway?Were so glad you asked . . .

#8. WE LOVE TENANTS

Some landlords view their relationship with tenants as a game of winners and losers. Consequently, many of them farm the whole property management process out to third parties. At Pratten Properties, we believe that the relationship with our occupiers is too important to hand over to someone else. Currently, the management division of Pratten Properties manages significant multi-dwelling property locations and commercial buildings located all across Vancouver Island. Its a lot of ground to cover, but with Customer Service Teams dedicated to each property and our 24/7 telephone helpdesk, the Pratten Properties Management Group encourages a dialogue aimed at providing our occupiers with costeffective and efficient working and living environments. Our experience shows that occupiers who are happy and effective in their property are more likely to stay put, take more space, or recommend us to othersand thats a good result for everyone.

#10. WE KNOW REAL ESTATE

Pratten Properties is at the forefront of providing syndicated income property to the retail, medical, residential, and business space markets in Western Canada and beyond. It is our specialist local micro-market knowledge, our strong balance sheet, and the very diversity and quality of our tenant mix, in combination with our flexible and service orientated culture, that makes us confident in our ability to continually drive the business forward. As youll find out in the next section of this booklet, every member of our team has been chosen for their unique talents, their related experience, and the specialized knowledge and skills they bring to our organization. Before we invest, our team looks at everything from materials and access, to parking and space planning. Once our proprietary ClosedLoop Management program is in place, we maintain a close dialogue with occupiers, and because of this, we keep on top of what residents and businesses alike are looking for. The results of these made-to-measure or designed-to-suit approaches can be seen in the properties we create and the occupiers we attract and retain.

#7. WERE VERY ATTRACTIVE

In the drive to maximize income and value, a property company is only as good as the occupiers which populate its buildings. Pratten Properties makes itself attractive to occupiers by providing highquality buildings in prime locations, on terms which suit their needs. In addition, we take an active approach to attracting prime tenants for our current properties, and use our waiting lists to identify prime targets for future additions to our real estate portfolio.

#6. WERE VERY CONSISTENT

Our approach to keeping our occupier base resilient over time is accomplished in stages. First, we attract strong businesses and reliable residents with good financial covenants. Then we provide lease agreements which give them what they need, but also protect the investments value. Finally, we keep our occupiers happy with the service they are getting, and the way in which their property works. Its a simple approach that works consistently for everyone.

#9. WE OWN AND/OR MANAGE MORE THAN 1180 LOCATIONS

As specialists in property investment, development, and management, as well as in the syndication of residential and commercial properties, Pratten Properties owns and/or manages approximately 1180 units (and growing). The bulk of these holdings are owned by Pratten Properties with the remainder held jointly, or in syndications with private investors like yourself. Our portfolio consists of various sizes of apartment buildings, Strata Corporations and commercial buildings, individual condominiums and multi-million dollar luxury waterfront homes, as well as stock of singlefamily homes. The number of property locations we manage has grown continuously and consistently, providing the stable growth of Pratten Properties and the confidence of its clients in our management.

#5. WE WORK NIGHT & DAY

Problems dont stick to working hours, and since we too have a financial interest in keeping our properties occupied by happy paying tenants, Pratten Properties is there to help occupiers on a 24-hours-aday, seven days-a-week basis. Our telephone helpdesk is available to handle calls every week around the clock. Sometimes they are calls for help (My roofs leaking, My drains blocked, etc.) and

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sometimes they are calls for advice (Can I get permission to make some alterations? or, Im thinking of taking more space). Whatever the nature of the enquiry, our helpdeskand the Customer Service Teams dedicated to each propertycan either supply the answers or put our occupiers in touch with someone who can help.

We provide our investors with a complete picture of how their syndication investment is performing via comprehensive monthly or quarterly statements, and what were doing to further enhance that performance, through timely newsletters. As expected, our management teams are also available to discuss any issues with our member-partners and occupiers.

#4. WE LOVE GOOD PARTNERSHIPS

In the most successful partnerships, each side brings something different to the party. Shared resources, contacts and information provide some of the biggest benefits and opportunities for our syndication partners. As a result of our experience, track record and market position, Pratten Properties has a huge resource of knowledge in the residential and commercial property sectors. The relationships we have cultivated in these sectors allow our investors access to this market expertise, and provide us with opportunities which match expertise with solid financial backing. It is this synergy that allows us to produce and deliver above-average returns for our investor-partners.

#1. ALL FOR ONE AND ONE FOR ALL

The most important thing to know about the people who work for Pratten Properties is not how many of us there are (just under 20 of us if youre wondering), its about the way in which we work: The integration of the various Pratten Properties divisions with the many external partners that support our operations is crucial to delivering service to customers and value to our investors. Our team-members skills and job functions overlap to create an organization that is highly effective and does not live in boxes. This culture is essential to maintaining direct contact with our customers and also in successfully managing our external partners. Our Property Management division is particularly a people business that interacts with our customers, the tenants. We view our staff as our essential asset, and are committed to their advancement, giving priority to a continuous program of specialist training and professional development for everyone in our organization. Whether hiring or outsourcing, we choose to associate only with other service-minded professionals. Whether they be internal managers and staff, external suppliers, or syndication partners, all of our relationships are personally selected. We simply wouldnt have it any other way.

#3. WE DESIGN TO SUIT

Pratten Properties recognizes that many businesses are becoming more and more specialized in their needs. Buildings have to either fit precisely the purpose for which they will be used, or be highly adaptable to the needs of the occupants. They have to be able to accommodate the latest in operational and technological requirements. So, whether its a new development or refurbishment of existing properties, our approach is to either work with end users to ensure that they get the space they need, or to make sure our speculative development has built-in flexibility. We take into account everything from availability of parking and elevator access, to landscaping and interior design. We maintain a close dialogue with occupiers, and because of this, we keep on top of what businesses are looking for. The results of these made-tomeasure or designed-to-suit approaches can be seen in the properties we create and the occupiers we attract.

#2. WERE TRANSPARENT

A well-explained business plan and accurate data are the lifeblood of our business, and clear financial information is one of the major benchmarks by which the best companies are judged. Pratten Properties is committed to an open approach and to delivering accurate and comprehensive information from both the operational and financial dimensions of our company.

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

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A TEAM OF EXPERTS
Real Estate Syndication is a superior investment vehicle than can only be made more profitable with the right team of investment leaders at the helm. When you participate in a syndicated real estate investment in partnership with Pratten Properties, you can be sure that your investment is in experienced hands. Want proof? Read on.

THE TEAM LEADERS

ALAN GEOFFREY PRATTEN

Senior Partner and President of Pratten Properties
Alan Pratten is an entrepreneur, a licensed realtor, and a seasoned private investor. He is also President and CEO of Exit Realty Abacus, a well-established realty agency on Vancouver Island, and Abacus Properties, a leading property management company since 1994. He is a member of the Victoria Real Estate Board, a Commercial Division member, and a Certified Commercial Investment Member candidate.

ADAM DOUGLAS GANT

Partner and Director of Capital Development
Adam Gant is a licensed realtor, an accomplished entrepreneur, a private real estate investor, and a valuation specialist with an uncommon talent for all things financial and mathematical. He is a board member and part owner of many corporations offering diverse products and services. Among these are a real estate investment training company, a property management company, a financing company, a private Investment development company, and a high-tech firm.

Relevant Talents and Character Traits include:

Talent hes known for: Finding opportunities and enhancing value. Key strengths: Leadership with integrity. At work, he smiles: When everybody comes out a winner.

Relevant Talents and Character Traits include:

Talent hes known for: Key strengths: At work, he smiles: Quantifying the up-side of the deal. Creative problem solving. When I put together investments that no one can compete with.

Career History
Alan Pratten lends over 40 years experience as an entrepreneur of real estate business. His areas of expertise include sales and leasing, construction, property development and re-development, and property management. As a successful realtor and owner of investment income property, one of Prattens main talents is finding, delivering, and enhancing winning investment opportunities. He has a proven track record of implementing effective management strategies to increase the value of the properties in his companys care. Pratten began accumulating his wealth of experience and expertise in all facets of the Real Estate Industry in 1963. He gained his handson experience in the planning and construction of residential and commercial properties as the owner of his own construction company in Bristol, England. In 1978 he moved to Victoria, BC to begin his various private investment and entrepreneurial pursuits in Canada. In 1994, he opened his property management office, Abacus Properties, and then added his real estate sales office, Exit Realty Abacus, to his array of services in order to enhance the other operations as well as his personal real estate holdings. Currently, he continues to invest privately, both on his own and in partnership with other private investors in real estate projects all over Canada. Today, Pratten provides complete residential and commercial accommodation and property services to a wide range of occupiers across Canada. His objective is to create long-term and sustainable returns for his investors through activities which include property investment, development and total property management.

Career History
In his first year of University, Gant launched his first real estate related business: a residential contracting franchise. As a 1st-year rookie in this business, Gant achieved the highest productivity level ever recorded by the 25-year-old organization, and earned his first of two Leader of the Year awards. In his second year of businessnow with staff totalling 23 men and womenhe gained entry into the prestigious Presidents Club in recognition for his outstanding achievements in both gross sales and net profits. It was in this business that he cut his teeth in all areas of sales and marketing, accounting, interviewing and staffing, negotiating, training, and management. Later, being ever mindful of his civic responsibilities, Gant put his business to work in support of various charities including the Big Sisters chapter in Vancouver who honoured him with a Gold Patron Award for his companys contributions to the organization. In his first year of real estate investing, Gant acquired 1.1 Million in properties using his own creative negotiating and financing techniques. (Since then, he has acquired several times that amount.) As V.P. of Finance for Pratten Properties, he is responsible for assessing and controlling risk for each syndication, as well as the administration of our rigorous due-diligence processes. In his role as Director of Capital Development, he employs his own mathematical models to detect the opportunities in the numbers, quantify them, and ensure appropriate action is taken until their hidden profits materialize.

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EMANUEL FURTADO ARRUDA

Partner and Director of Communications
Emanuel Arruda is a communications specialist with a talent for producing communications tools that contain both sizzle and steak. He brings 10 years of experience as president of his own advertising and marketing firm to Pratten Properties. He is an accomplished entrepreneur, marketing expert, graphic designer, copy writer, and real estate investor.

A. GRANT DIXON
Senior Assessor for Pratten Properties
Grant Dixon is an expert assessor, developer and a licensed realtor specializing in commercial and residential land development. Dixons talents are expressed in his ability to quickly determine precisely what can and should be done with a certain property, assess its viability as any one of a number of possible types of development forms that could be considered, and the profit-generation potential for each type. As Senior Assessor, hes responsible for managing our meticulous duediligence processes for every property we develop and syndicate.

Relevant Talents and Character Traits include:

Talent hes known for: Key strengths: At work, he smiles: Big picture thinking and small detail doing. Innovation and communication. At every opportunity!

Relevant Talents and Character Traits include:

Talent hes known for: Key strengths: At work, he smiles: Finding the opportunity in the opportunity. Persistent. Detailed. Resourceful. When I see what no one else saw.

Career History
Upon completing his undergraduate studies at the University of Toronto in 1991, Emanuel Arruda opened his own design and marketing firm in the heart of the city. As President of Absolute Advertising in Toronto, Arruda provided marketing and communication tools to clients in Canada, the U.S., and as far away as Iceland, Italy, and Japan. In 1999, he sold his firm, and for a brief time, provided consulting services to a competitor. Within six weeks, he streamlined their production and reduced re-work by 87%. Having discovered his talent for consulting, Arruda was quickly snapped up by one of the worlds oldest and largest management consulting firms, and remained there for nearly four years. During his tenure with the firm, Arrudas talent for one-on-one communications, and rapport building came to the fore. Garnering literally hundreds of major business clients in that short time, Arrudas talent was to quickly get to the nitty-gritty of the problems and impediments to growth facing these small to medium-sized businesses, and assign specialists to implement custom solutions for them. He quickly became the top associate in his territory, which spanned from Toronto to Windsor, and as far north as the French River. Capitalizing on his profits from the sale of his business, and the travel afforded him by his consulting work, Arruda began investing privately in real estate in 1995 and continues to do so to this day. As an investor in real estate himself, Arruda appreciates the unique nature of property management and marketing, and uses his skills to develop and maintain vital systems for communications within our organization, and without.

Career History
For more than 10 years, Grant Dixon has demonstrated a talent for producing consistent property development success. As a Developer, he can take the right property and bring it to the desired end result be that children playing in their backyard, a commercial franchise operation on the main strip in town, or a medical office in the suburbs. Creating something from nothing is one of Dixons best talents. Over the span of his career, Dixon has built much more than just residential and commercial subdivisions in Eastern and Western Canada, hes also built valuable business relationships throughout the development industryall of them built on trust, reliability, and mutual respect. In a business as competitive as real estate development, having a skillful liaison like Grant Dixon on your team is an enormous advantage. Feasibility and viability are everything. It takes a keen eye to see the opportunity in seemingly unrelated events. For instance, knowing that a certain municipality is upgrading or expanding the sewer service in a certain area means that occupancy allowances will likely increase in the area, and with that comes the opportunities for new developments to be created in the surrounding area. Recognizing how, when, and where to capitalize on events such as these, results in significantly more opportunities in areas where no one else is looking. Dixons talent for recognizing and acting upon these subtle signals means we get there first.

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MARK ORLAND WANSTALL

Investment Scout for Pratten Properties
Mark Wanstall is an accomplished real estate investor, property manager, project manager, and builder with a talent for generating impossible results through his tireless persistence. His adventurous spirit, extensive network of contacts, and astonishing versatility aid him in finding winning projects for our portfolio. Wanstall holds a Bachelor of Science Degree in Geography and is the Director and majority shareholder of an established real estate holding company.

RUBY NISHI
Property Manager for Pratten Properties
Ruby Nishi is an experienced property manager, administrator, and realtor with a talent for maintaining effective relationships with the myriad of people occupying the properties in her care. Ms. Nishi currently holds an unrestricted real estate license which she received in 1979. In addition, she has earned a diploma in Marketing and Business Administration, and has a background in real estate office management, conveyance and administration.

Relevant Talents and Character Traits include:

Talent hes known for: Seeing projects through to fruition. Versatility. Reliability. Persistence. Key strengths: At work, he smiles: Upon finding an opportunity and seizing it!

Relevant Talents and Character Traits include:

Talent shes known for: Doing just what she says shes going to do. Key strengths: Attentive. Organized. Dependable. At work, she smiles: When tenants call just to thank me!

Career History
Since beginning his career in investment real estate in 1999, Wanstall has accumulated nearly $2.3 million in investment real estate. Hes a remarkably versatile real estate investor with a talent for creative thinking and deal-making. Finding and fixing properties with latent potential is Wanstalls specialty and, as a rule, he employs a strict buy and hold investment philosophy. Wanstall believes that consistent financial performance over the life of a property comes from ensuring its current and future appeal. He also believes that this appeal translates directly to the rents he can demand as well as the appreciating value of the property itself. To that end, Wanstall applies his comprehensive maintenance and enhancement programs to all his investment properties. With 12 properties currently in his portfolio, his results are unmistakable. Each produces the positive cash flows for himself and his partnersjust as they were intended to do. Thats a track record that speaks for itself. Guiding people to opportunities is nothing new to Wanstall. Prior to entering the field of private real estate investing, he rubbed elbows with a myriad of high profile celebrities, business moguls, and private citizens while working as an adventure guide at various exclusive resorts. Keeping his clients safe and happy is just a matter of course for this highly trained sherpa, and its exactly this kind of experience that makes Wanstall such an important member of our team. Hes an experienced world traveller, entrepreneur, and investor who is always at the ready to travel any distance necessary to explore new opportunities for our investment portfolio.

Career History
Now totalling 25 years in the real estate industry Ruby Nishi brings with her a wealth of knowledge and experience in residential and commercial sales, as well as property management. For the past eight years, she has worked in strata property management, managing numerous buildings in both residential and commercial strata units. Nishi is a talented administrator, coordinator, and communicator. She is responsible for her crews coordination and completion of the countless property management needs for a wide variety of properties including individual condos, townhouses and houses, as well as duplexes, multi-unit apartment blocks and large strata corporations. (That means Nishi is on call 24-hours a day, every day.) So, how does she manage to keep everybody so happy? If you can sense the difference between a Complaints Department and a Customer Help Desk, then you have some idea of the value Nishi adds to the property management division of our organization. One of the ways she proactively minimizes her workload, is by making it her business to personally interview every perspective applicant as they do an on-site inspection of the property. By carefully matching the right tenant with the right property beforehand, she increases the likelihood that our occupants stay put longer. Nishi knows that tenants will continue to occupy our properties just as long as their needs are being met consistently and swiftlyso she makes that happen everyday. Thats not just a skillits a bona-fide talent.

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JENNIFER ELIZABETH COUSINS

Management Administrator for Pratten Properties
Jennifer Cousins received her diploma for Business Administration from Camosun College where she immersed herself in Finance, Statistics, Financial Accounting, Cost Accounting, Communications, General Management, Marketing, Retail Merchandising, Organizational Behaviour, Human Resources, Business Law, Money and Banking, International Business & Trade, and the ever-popular Macro and Micro-Economics. The knowledge and experience she has amassed, coupled with her innate talent for diligent tracking and management of our business affairs, ensures the enduring consistency and reliability of all our internal and external fiscal reporting.

DEBBIE JEAN GAIT

Bookkeeper and Conveyancer for Pratten Properties
For 13 years, Debbie Gait has put her talent for precision, accuracy, and reliability to work in well-respected realty agencies, charities, and law firms in both Alberta and British Columbia. As Conveyancer, Debbie Gait is the link between the lawyers and the realtors, and the buyers and the sellers. It is because of her diligence and vigilance that all our transactions precede so smoothly.

Relevant Talents and Character Traits include:

Talent shes known for: Key strengths: At work, she smiles: Getting it right the first time. Precision. Accuracy. Reliability. Smile? When dont I smile!

Relevant Talents and Character Traits include:

Talent shes known for: Key strengths: At work, she smiles: Disciplined, focused thinking. Meticulous and accurate results. When the books balance perfectly!

Career History
Gait first joined Alan Prattens team of specialists as the controller for the company in 1995. Prior to that, she worked independently for her own roster of clients and adapted her talents for precision, accuracy, and timeliness according to the needs of her clients. This included acting as conveyancer and bookkeeper for a prominent notary public; and bookkeeper for the Canadian Iron and Steel Industrial Workers Union Local #1 in Victoria, BC. Between 1996 and 2000, Gait worked for two well-respected law firmsfurther enhancing her degree of expertise in the areas of bookkeeping and conveyancing in both real estate and law services fields. In Edmonton, she was a legal assistant and commissioner of oath for the Province of Alberta, and she supplied the backbone for the day-to-day operation of the business. As the conveyancer and bookkeeper for Pratten Properties, Gait keeps track of the multitude of details that come part and parcel with handling rents paid by hundreds of occupants; posting expenses; and preparing disbursements from the trust accounts of the owners of the 1100-plus units that are currently owned and/or managed by the company. For the property management portfolio, she also manages payables and receivables, and as conveyancer, she prepares and monitors all real estate listings and deal files, ensures all contracts are accurate and complete, and that all information is forwarded to the relevant parties in a timely manner.

Career History
Jennifer Cousins has garnered extensive management experience in the arenas of accounting for the property management and construction industries. From 1992 to 1999, she got her introduction to the basics of bookkeeping and accounting while under the employ of a mediumsized building and construction supply depot in Port Alice, BC.. As it was the family business, keeping track of every transaction efficiently and accurately developed into both a personal and professional habit. Since that time, she has reached even greater levels of proficiency while working independently for a number of businesses in the real estate development sector, providing services in the areas of overall office management, budgeting, bookkeeping, and development of integral record-keeping procedures and control systems. In 2000, Cousins joined Alan Prattens organization, and she now manages and administrates his group of companies exclusively. These include Exit Realty Abacus, Abacus Properties and various related businesses and investments. Her responsibilities include: office administration, budgeting, preparation of corporate financial statements, as well as supervising the preparation of financial statements for the property management portfolio. In addition, she also manages corporate payables, receivables, and monthly bank reconciliations for the corporate and real estate trust accounts, and prepares for the annual audit.

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THE GAME PLAN

How We Run Our Syndications

THE GAME

PLAN

Focusing on prime assets in the residential and commercial sectors; Creating exceptional long-term investments with strong covenants, long lease terms, and growth potential; Enhancing property returns through active management and development; and Maximizing equity returns through optimal financing and private syndications. By exploiting the strong local market knowledge of our experienced team, and through our strategic alliances and partnerships with various professionals and private individuals, Pratten Properties is able to acquire, maintain, and dispose of strategic assets optimally. This practice enables us to maintain a consistently profitable portfolio, which is carefully balanced by sector and by geography.

OUR OBJECTIVE
Our primary objective is to create long-term and sustainable returns for our investment partners and our company through our property investment, development and total property management activities. Through our proven system of total property management (i.e. the Pratten Closed-Loop Management program), both the cash flow and the assessed values of these properties will be improved and maximized. The aim of our investment strategy is to generate and continually increase the net income from the properties for distribution to the member-partners. This net income will be distributed back to our investors via monthly payments and periodic disbursements from refinancing on an ongoing basis.

OUR INVESTMENT STRATEGY

Our long-term policy is to seek high yielding properties and spreading risk by balancing the portfolio using class and geographical location. Our investment approach is to concentrate on the fundamentals of individual assets. A key criterion is a propertys enduring attraction to occupiers, because of its business suitability, location and efficiency. As specialists in their respective industries, Pratten Properties team of professionals has the ability to understand the needs, expectations, and technical requirements of our clients and tenants. Our property management division is carefully guided to carry out the specific improvements we know are necessary to keep our occupants happy, and that will ensure that we reach our financial objectives. Leverage is something that gives real estate its advantage over other forms of investments, but can also create some risk. With prudent use of leverage, we maximize gains for our investors while insuring against potential capital loss. In accordance with our internal investment policies, our standard ratio of debt to equity on any Pratten Properties syndication qualifies us for the lowest rate of interest on our mortgagesthis is because we work within our institutional lenders most stringent parameters. As a result of the lower interest rate attained, we receive the highest spread on the yield from the property and are able to provide our memberpartners the best cash dividends possible. In line with our acquisition policy, we always aim to keep our portfolio of property balanced across the sectors stated below. This flexible operating strategy underpins our ability to beat the trends and sustain year on year growth in the long-term, thus enhancing our market position.

OUR CORPORATE STRATEGY

Pratten Properties pursues a twofold strategy in the sphere of real estate syndication: Our first priority is to manage our current property portfolio in an optimal manner. Secondly, we concentrate on optimizing our investment portfolio by undertaking selective property acquisitions and disposals, and by developing new opportunities (including construction of new buildings as well as the renovation of older sites) for our private syndication program.

OUR ACQUISITION STRATEGY

Our acquisition and value-adding strategy has developed over the last 40 years: We target high yielding investment opportunities in a range of residential, industrial, and commercial sectors in key geographical areas. Once acquired, new financial targets are set, the existing property management personnel are augmented or replaced, and then actively managed by Pratten Properties highly experienced crews using our own proprietary management system to further ensure meeting our stringent financial targets. Our opportunistic but risk-averse strategy seeks to achieve long-term growth in investment value by:

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USE OF PROCEEDS
Regardless of the specific business line, Pratten Properties acquires and develops properties primarily to actively manage and operate them as income producing, ongoing businesses. Concurrently, we are regularly exploring new opportunities for income growth from new acquisitions or development, as well as from providing incomeproducing leasing or tenant services. With a very diverse profile, Pratten Properties offers investors many alternatives across a broad range of real estate sub-sectors, including: Apartment communities; Seniors Housing; Shopping centres and malls; Industrial parks and warehouses; Lodging facilities, including hotels, motels and resorts; Medical Centres; and Renewable Energy Power Production Centres (water or wind power).

INTERNAL CONTROL SYSTEMS

In anticipation of these circumstances, Pratten Properties has undertaken a comprehensive risk assessment, which has identified the individual risks that affect the syndicate. We have ongoing processes and procedures for identifying, evaluating and managing the significant risks faced by the investments, and we regularly review and update these processes. We apply two fundamental control principles: A defined schedule of matters reserved for decision; and A detailed authorization process that ensures that no commitments are entered into without competent and proper authorization by more than one approved executive Our team continuously reviews the effectiveness of our system of internal control. The responsibility for management of each key risk has been clearly identified and delegated to specific members of the team. In order to provide relevant and timely information to the executives with responsibility for managing risks, the Team has the following key information systems which generate reports as follows: A management reporting system which includes regular working capital reports and forecasts; Operational reporting on property purchases, sales and portfolio management; and And regular reporting to the executives on financial and treasury matters. The team considers the risk implications of business decisions as well as the way each risk is managed. We re-assess these risks on a regular basis to ensure that any risks arising from changes in our operations or the external environment are identified and appropriately managed. The detailed individual risks have been categorized into the following areas: Property investment and management; Property development; Taxation; Management; and Financing. The nature of the specific risk areas and related controls are as follows:

RISKS AND OUR CONTROLS

Pratten Properties syndications generate profits for our investors through long-term investment decisions that will positively affect both income and capital appreciation. These decisions include exploiting opportunities arising out of natural market volatility with respect to supply and demand imbalance in the following core areas: Demand for space from occupiers vs. available and upcoming supply; Differential pricing for premium locations and buildings; Alternative use for buildings (particularly redevelopment); Demand for returns from investors in property, compared to other asset classes; Price differentials for capital to finance the business; Legislative incentives, including planning consents and taxation; and Economic cycles, including their impact on tenant covenant quality, interest rates and inflation. These opportunities can also represent risks: Demand for property and the ability of tenants to pay rent can be influenced by general economic conditions at both a macro and local level. Excessive levels of property supply can also lead to falling rents. Rising interest rates may affect the security of the tenant base, lower development margins significantly and reduce investment appetite. Property values are also affected by changes in planning, taxes, technology, and lease structures. Interest rates, bond yields and the relative attractions of other asset classes also impact property values.

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Property Investment and Management Risk Controls

Principal Risks
Property values may decline and returns not be optimized; uneconomic investments may be made or under-performing properties retained; significant tenant defaults may reduce income and property values; and property insurance may be inadequate.

Management Risk Controls

Principal Risks
The team is reliant on its small, high calibre team of executives.

Our Principal Controls

These include the assurance that knowledge of all processes and projects is shared by at least two employees; that the team recruits and develops high calibre employees; and considers successionplanning issues.

Our Principal Controls

These include regular reviews of current and future market sentiment; reviews of each individual property at least two times a year including internal and external assessments; considering current and future values and yield prospects as the basis of sell or hold decisions; benchmarking portfolio performance against peer groups using CMHC statistics; consideration of tenant mix covenant strength across the portfolio; and reviewing insurance cover.

Financing Risk Controls

Financing risk is spread by using a range of banks and a variety of types of finance. The maturity profile of debt is managed by spreading the repayment dates and extending and expanding bank facilities.

Property Development Risk Controls

Principal Risks
Leasing risk for speculative developments; construction cost and time overruns; and adverse changes in planning which may cause delay and affect profitability.

Our Principal Controls

These include limiting the amount of speculative development; assessing leasing potential and prospective profitability of developments prior to commencement of construction; on-going assessment of development expenditure by quantity surveyors with regular comparisons of costs against budget; and ensuring executives are kept up to date with planning policies.

Taxation Risk Controls

Principal risks
The investment is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporate tax, GST and PST.

Principal controls
These include regular monitoring of legislative proposals and participation in discussions with Government directly and through trade bodies to understand and, if possible, mitigate the impact of changes.

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

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PRATTENS
INVESTMENT

GUARANTEE
How We Earn Our Share

PRATTENS
INVESTMENT

BUCKING THE TREND

Rather than taking value before adding any, Pratten Properties earns its ownership stake only after increasing the value of the property and your investment. We earn just 20% of the increase we create in the income and value of the property (relative to the income, and equity levels established at the time of purchase). And, since our compensation is dependant upon our own performance, you can be certain that we choose each investment property very carefully, and that the investment and your returns have our focused attention at all times.

GUARANTEE
Youve probably heard of one-off syndicates that demand an automatic 15 to 25% ownership stake in the property (on top of their acquisition and management fees) as one of the up-front perks for the General Partner. Pratten Properties syndications are structured very differently than that. Typically, syndicators will do things like pad the purchase price and/or take a substantial ownership bite out of the property as compensation for putting together the investment. They do this to secure their up-side on the front end of the deal and to eliminate their risk almost completely. If you call them on it, theyll tell you that this is simply the cost of doing business with them. As we see it, these are the tell-tale signs of inexperienced or short-sighted General Partners with a poorly designed syndication plan. There are a number of reasons we feel this waythe two most important being that this dilutes the investors unit value, and also results in the lack of built-in motivation for the General Partner to continuously improve the investment. To begin with, since the investors slice of the pie is now 15 to 25% smaller, so are the monthly profit payouts. Which means, all of the participating investors experience an immediate dilution of their unit value, and this in turn reduces their overall return on investment. Even worse, the rate at which the value of their investment appreciates is also stunted by the same 15 to 25%. (In contrast, Pratten Properties syndications are specially selected and structured to double in value every 3-4 years.) The real danger for investors involved in this sort of syndication, however, is that there is no built-in motivation for the General Partner to aggressively manage and continuously enhance the property after the deal is done. So, rather than continuously working to increase the value of their investment beyond the expected appreciation of real estate values, and aggressively maximizing the investment returns for the investors, the General Partner remains content with the status quo. So, from day one, the investment is hobbled and the syndicators relationship with the investors is irreversibly souredand thats why theyre called one-offs: nobody would be foolish enough to invest with them more than once.

YOUR R.O.I.
How does this affect your return on investment? Depending on the investment, our way of doing things can translate to a savings (and therefore, additional profits for distribution) of 15 to 20% of the initial monthly profit payouts, as well as an additional 15 to 20% of the increase in equity compounded annually from the first day the investment is purchasedso your investment grows bigger, faster. So, whats to keep us from inflating the value of the property or its income? The check and balance that prevents this from happening is built into our unique investment philosophy, and it simultaneously creates liquidity for your investment too.

YOUR LIQUIDITY
We understand that unforeseen personal situations can sometimes force one or more of our investors to liquidate their shares sooner than they had originally planned. To provide assistance in such instances, Pratten Properties maintains a waiting list of member-partners and prospective members. So, if you need to sell some or all of your units, we can help you in the same way a Realtor would help you sell your home. To ensure that you are receiving the most honest and accurate value for your units, we use a third-party appraisal to determine fair market value, and are audited yearly by KPMG Canadas largest and most respected professional services firm. These mechanisms keeps the syndicate honest, and your investment secure, accurately priced, and remarkably liquidyou wont find that anywhere else.

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OUR CREDO
Our Core Values and Beliefs

OUR

WE BELIEVE that our word is our bond; it can be trusted. Any person who does not keep their word, even though they have given it only by telephone; one who seeks to evade a contract because of some technicality; or who willfully misrepresents or outright lies, is reprobate and should be shunned. Such persons will not be tolerated, and once found out, we will have nothing more to do with them. WE BELIEVE that it is our ethical obligation as well as our lawful duty to protect our interests and the investments we administer. We will prosecute to the fullest extent of the law any whos willful lies, misrepresentations, acts of omission, or misconduct cause harm to our member-partners, our company and its associates, or the investments in our care. We will vigorously defend our concerns on behalf of all those who depend on us, and when doing so, we will retain the best-qualified professional counsel and legal representation required to guarantee a just result.

CREDO
A concise statement of our core values and beliefs.

INVESTMENTS & SERVICES PERFORMANCE & LEADERSHIP

WE BELIEVE in the primacy of the Golden Rule and will adhere to it in all our pursuits. In all our activities we will espouse this tenet: We will do for others, as we would have them do for us. WE BELIEVE that in all things we should be the leaders. We should set the standard against which all others are measured, continually evolving and seeking to surpass our latest levels of accomplishment. To lead effectively we must be bold, proud, and above all, free from the fear of making an honest mistake. When mistakes are made we will acknowledge them openly, correct them immediately, and look upon each as an opportunity to gain valuable lessons from the experience. WE BELIEVE that as leaders we must be right-thinking women and men of inviolable integrity and sound precepts. It is for every one of us to make absolutely sure that whatever we do, that our words and deeds are rooted in the foremost precepts of ethicseven when we are our only witness. Let us always go by our word: Let our yes be yes, let our no be no, and let us make no offer nor promise that lays outside our domain, or which we know we cannot fulfil. WE BELIEVE that investments in real estate are the surest means of creating lasting wealth, and that the safest and most direct route of achieving this goal is through syndicated investments in professionally managed, high-return real estate. WE BELIEVE that through our syndicated investments we enable our member-partners to secure enduring inter-generational wealth. We aim to provide our member-partners with an organized system for managing their wealth across generationsa framework that will continuously protect and maximize their capital through each succeeding generation of their family. WE BELIEVE that for our member-partners to reach their highest goals, we must offer them the advice and services of in-house and third-party consultants of the highest calibre. Respected professionals equipped with special knowledge and experience, who will provide our member-partners with specific solutions to their individual needs quickly, objectively, and with complete integrity. WE BELIEVE that with each investment we initiate and each new member-partner we befriend, we add strength to the fabric of our free society. Through such proliferation of enduring familial wealth, society as a whole may be improved as future generations of our families are provided the freedom to devote their time to vocations or pursuits that they enjoy, provide personal fulfilment, and through which they may contribute to the betterment of humanity.

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WE BELIEVE that every investment project we initiate must succeed. Accordingly, we will not engage in any activities that lie outside the professional competence of the acquisition and management teams we assemble, nor will we begin acquisition procedures until we are fully confident in our abilities to negotiate, acquire, and continuously manage the property profitably. WE BELIEVE that in the sphere of professional investing there is no place for speculation. Ever mindful of our fiduciary duty to our lenders and to our many member-partners who have committed significantly large portions of their net worth to our care, we shall never risk losing either their invested capital, or their confidence in us. WE BELIEVE that a fair compensation structure is one that is linked to the results achieved. To mark our continued commitment to extraordinary leadership, wherever possible, we will utilize fair monetary incentivesalong with an appropriate system of checks and balancesto ensure that we remain committed to succeeding to the maximum degree. We will measure the level of our remuneration against: the value of the labour we invest in the project prior to acquisition; the increase in profit and value we create (relative to the values established at the time of acquisition); the level of risk we endure or alleviate from our member-partners by our active participation, management and administration of the investment; as well as the expertise we supply throughout.

WE BELIEVE that investing together with a harmonious group of experts and friends, makes our investments all the more stable, secure, andjust as importantlyenjoyable. As long as we remain a private institution, we shall reserve the right to select, accept and retain only like-minded, like-tempered, and well-reputed individuals into our group, whose characters and ideals harmonize with our own. We will do this with the aim of constantly cultivating a harmonious environment in which to achieve, while avoiding distractions or interruptions to our ongoing business operations. When making our selections we shall not discriminate against any person because of age, race, gender, disability, religious or spiritual beliefs, familial status, or national origin. WE BELIEVE our membership is comprised of extra-ordinary individuals who are deserving of respect. We respect them foremost for the effort, care, and constraint it took to produce, accumulate, and save their investment capital. Having their capital entrusted to our care, we will manage it with exceptional ability on their behalf. If the day ever comes that we cannot find a profitable place to invest their free capital, we shall pay those member-partners out and let them deploy their funds as best they can. When the time once again comes that suitable opportunities present themselves, they shall have the first option to invest, ahead of all others.

MEMBER-PARTNERSHIP & FRIENDSHIP

WE BELIEVE that member-partnership and friendship with our investors brings incalculable rewards to all our investments. By inviting new friends to become our member-partners, and in turn partnering with them by re-investing our earned capital alongside theirs, our interests are always in alignment. United by this philosophy of positive inter-dependence, we may reach towards ever greater goals, confident that we share all the same concerns, interests and aspirations. WE BELIEVE that by continually sharing a greater portion of profit with our member-partners; maximizing and protecting their invested capital; and by making available to them the resources of the finest experts in any field we require, we will continue to attract and befriend the finest group of like-minded individuals to partner with us, so that together we may accomplish greater goals and reap greater rewards than any of us could individually.

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

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COMMITMENT
Fulfilling Our Mission Through Ethical Standards and Practices.

OUR

OUR

CONSCIENTIOUS INVESTING
WE BELIEVE that an honest profit should rest as comfortably on the conscience as it does on the pocketbook. Remembering always that our standards and desires are those of leaders, we are committed to positively affect the communities in which we operate, and the environment in which we all co-exist. WE BELIEVE that having safe and pleasant places to live, work, shop, and relax are a form of wealth that no human being should be denied. It is the very foundation of a vibrant, healthy society, and nothing could be more worthy of our attention. Therefore we will continually strive to make the properties under our care, rate best in their class. It is our aim to create long-term, compounding enhancements on the properties we develop and transform, in the lives and businesses of our clients who occupy our properties, in the surrounding communities, and on the environment in which these communities co-exist. WE BELIEVE that there is a task that no conscientious investor may shirk: We must endeavour gradually to bring about such a reconstruction of society that poverty and its attendant evils shall cease to exist. We must do our part to ensure that future generations of humanity inherit from us a world that is cleaner, safer, and happier the one we know now. To this end, we are committed to set aside a fixed portion of our profits as an investment in the future of human civilization by providing continuing financial support to select humanitarian organizations whose core values reflect those in our credo, whos financial administrative practices are sound, and whose mission is to positively and sustainably affect societies around the world. We will invite our member-partners to do the same.

COMMITMENT
A brief statement of our standards and practices.

KNOWLEDGE & COMMUNICATION

WE BELIEVE that as leaders in the investment community we must continue to operate our business affairs with transparency, and in the light of accurate knowledge. We will keep our member-partners informed of material facts and events that directly affect their investment. We will do so in a manner that is clear, fair, truthful, timely, and complete. Additionally, in the spirit of equity towards all, we will publish our latest opportunities and announcements to relevant parties simultaneously, by whatever reasonable means available. WE BELIEVE that along with a foundation of unshakable trust and accurate data, strong member-partnerships require ongoing up-todate information. To aid both new and alumni member-partners alike, we will continually create, provide, and recommend materials, systems, or services, that will further aid our friends to understand and differentiate the investment opportunities we offer them. WE BELIEVE that informed member-partners can be relied upon to make their investment decisions quickly and independently when they are presented with all the necessary facts. To that end, we will present all our investment opportunities factually, plainly and free of conjecture, opinion, and rhetoric. In this light, each of our memberpartners can then easily weigh for themselves the merits of each investment we initiate. When the time comes for their decision, their confidence will rest comfortably on their own firm understanding of the investment opportunity at hand, rather than having to rely on emotional appeals or second-party speculation.

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

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QUESTIONS

FREQUENTLY ASKED

FREQUENTLY ASKED
Do you ever require a minimum investment? No. We have never set minimum investment requirements for any of our syndications, nor do we intend to do so in the foreseeable future. Pratten Properties was founded on the belief that our relationship with our member-partners is much more important than any principal amount they choose to invest with us in any one project. How can you afford to consistently offer such high returns? We have constructed our organization from the ground up to do the following things better than anyone else: To find, qualify, acquire, and manage the most profitable real estate properties and syndications anywhere.

upside before, think of it as diamonds lying buried and hidden under layers of grime and stoneour crew mines, cuts and polishes them to realize the full potential of their value.
Why do you set maximums for your investments? The reasons are twofold: Before anything else, we want to encourage even our most ardent investors to always use prudent moneymanagement techniques and diversify their holdings. Secondly, it is important to keep in mind that we set out to make new friends not new friend. If we allowed one or two deep-pocketed investors to acquire all the units in our syndications, it would take us much longer to cultivate the number of member-partners we need to achieve our goals. Can I invest directly from my RRSP? No. However, even though you may not invest from your RRSP directly, some Pratten Properties member-partners have used the services of bond underwriters to access their RRSP money without paying the withdrawl tax. How it works: A bond underwriter will issue you an RRSP-eligible bond, and then provides you with a loan (outside your RRSP, and at a reasonable rate) that is secured against the bondall without having to pay withdrawal tax. Their bond earns you a slightly lower rate of return than the loan they provide, but you can use this freed up cash to invest in any of our syndications and leverage your invested funds over and above the interest rate paid on the loan. As a nice bonus, since the interest paid on the loan is tax-deductible, it provides another opportunity to significantly enhance your overall after-tax return on investment. Working with a bond underwriter allows member-partners to: convert their under-performing RRSP funds to Limited Partnership units in any Pratten Properties syndication in as little as 7 days; eliminate the 10% RRSP withdrawal tax and avoid paying income tax on the withdrawn funds; enjoy a 4% tax credit that they can apply to other personal income every year; realize a tax-efficient return on their newly liberated capital. If you wish to wish to use your RRSP contributions to enlarge your ownership position, you are invited to contact us any time.

QUESTIONS

In combining the unique skills and experiences of our team leaders and staff, we have spared no expense to build (from scratch where necessary) whatever software, hardware, knowledge-base, and human resource infrastructure requirement needed to capture the best of our experience and skills, and breathe them systematically into our business. With this backbone supporting our efforts, we are able to accomplish greater results faster than any other investment group. But perhaps the simplest reason is that, unlike most syndicators who specialize in acquiring shelf properties that can be managed right out of the box, we at Pratten Properties are devoted to rolling up our sleeves and getting our hands dirty rejuvenating tired properties that have unrealized potentialalso known as upside. (See: Prattens Investment Guarantee). If youve never heard the term

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Why do you call your investors, member-partners? We invite new friends to become our members, and we in turn partner with alongside them by investing our capital alongside theirs in Limited Partnership units just like theirs. Any ownership of units held by directors or staff of Pratten Properties are in the form of personally held Limited Partnership units having the same rights and restrictions as any of our member-partners. What are your criteria for membership? Because syndications are by nature group investments, we believe that the more our group members have in common and the more their interests align, the more stable and predictable the investment will be. So, before we take you on as a new member-partner, we want to speak to you personally and even meet with you face-to-face if possible. If things proceed from there, we will next speak with the references you supply. If we all agree that theres a good fit, you will be accepted as a new member-partner of Pratten Properties. It may seem a little out of the ordinary when compared to the common investment houses, but ours is a private investment firm, and being so allows us the freedom to be as old-fashioned (and cautious) as we wish to be. As a Limited Partner, what do I actually own? In a Limited Partnership form of syndication, your interest in the property is an indirect one. (This legal structure protects every Limited Partner from liability). Title to the property is registered at the Land Titles office in the region in which the property is located, in the name of the General Partner who holds title in trust for the Partnership. The Limited Partnership Agreement and the names of the participants are registered with the BC Securities Commission. Upon successful closing of the property, our lawyers provide each member-partner with a copy of the title for their records along with their unit certificate. Do Alumni Members get the first look at new offerings? Yes. One of the greatest advantages of having an established relationship with Pratten Properties is that our Alumni Members get a 48-hour advance notice at all new investment opportunities. During this period they (and any close friends and business associates that our members may wish to introduce to us) are offered the opportunity to participate prior to public notice being given. Once this period expires, we next offer the units remaining un-subscribed (if any) to pre-qualified prospective members.

(Note: Currently, the average decision time for members to participate in a newly offered syndication group is less than 5 days from the time they first receive their Executive Summary to the time we receive their Notice of Interest. This time is likely to drop as it becomes more difficult to find good deals and as we have more distributable cash from refinancings that we must re-invest for our current member-partners.)
How large is your territory? For the time being (or until a particularly good opportunity presents itself) we prefer to focus on real estate within Canada. We believe that Canadas strong economy, stable political system, and its abundance of natural resources, make it the best place in the world to invest in real estate. In addition, by investing in our own country, we eliminate any risk that could result from exposure to currency fluctuations. What are your criteria for choosing which properties to syndicate? Every prospective syndication projects must share all of these traits in common: The property must pass our rigorous due-diligence process that not only discloses all manner or potential risks, but also determines the maximum price we can offer and still achieve the 15%-25% ROI our member-partners have come to expect. There must be no risk of loss of our member-partners capital. The property must provide our member-partners a tax-efficient investment. In particular, we aim to achieve regular income that is partially or completely sheltered from taxation, provides taxefficient disbursements during refinance periods, as well as preferential tax treatment on investment income and unit value increase. Prior to making an offer to purchase, the property must already show a positive cashflow that achieves a net income yield that is a minimum of 3% greater than the monthly payments for the first mortgage. The property must demonstrate the potential for increase in value by at least 10% annually. This increase potential is must be directly attributable to factors controllable by our management teamnot speculative market factors. The property must have un-realized potential (commonly called, Upside). This potential can take many forms. For example: zoning that allows for further development or redevelopment; room for rent increases; aesthetic or structural improvements which upon completion and reappraisal would add immediate value; and, improvements in management systems or personnel.

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Who manages the properties that are under Pratten Properties administration? You wouldn't leave your baby in the care of a stranger, and neither would we. No matter the distance from our headquarters, every property we acquire on our member-partners behalf is under the managerial direction of Pratten Properties at all times. After all, our compensation depends on it. (See: Prattens Investment Guarantee) What is the Closed-Loop Management system? Our proprietary method of management and control is our little secret. It keeps our employees and contractors honest, efficient, and on their toes! When and how should I cash out? It depends on the deal. For every new syndication project, we publish an Executive Summary. In it we include details of the various events we plan that will trigger the re-appraisal and re-financing of the property. (See, Prattens Investment Guarantee). It is recommended that you plan your strategy around these events. You may wish to discuss your options during your complimentary planning session with KPMG. How liquid is my investment? Unforeseen personal situations can sometimes force one or more of our investors to liquidate their holdings sooner than they had originally planned for. To remedy this, Pratten Properties has in place a unique buy-back program to help investors cash out of their positions when unforeseen circumstances arise. For more information on this, see Prattens Investment Guarantee Who decides the value of the unit when a Limited Partner wants out? To ensure that you are receiving the most honest and accurate value for your units, we use a third-party appraisal to determine fair market value. This mechanism keeps the syndicate honest, and keeps your investment secure, accurately priced, and remarkably liquid. If an investor is forced to liquidate their holdings in between refinancing periods, the current value is assessed based on the change between the net incomes of the property on day the units are sold, from the day the units were purchased. What percentage of ownership does the GP take up front? Zero. We believe we must add value to an investment property in

order to earn our share in ownership. For more information on this, see Prattens Investment Guarantee. Can the GP buy up more and more units and become more powerful? The General Partner will never own units in any syndication. Any ownership of units held by directors or staff of Pratten Properties will be in the form of personally held Limited Partnership units having the same rights and restrictions as any of our member-partners. How much of my investment is taken out in fees? How much is left working for me? Pratten Properties does not take any ownership up front so all of your money is working for you from day one, and your units are not diluted by even a single penny. We are committed to maintaining transparency for our member-partners, so we disclose individual fees, disbursements, commissions, etc., in every Offering Memorandum for every syndication we initiate. Do you ever demand cash-calls that require that the Limited Partners invest more money? No. There will be no cash-calls. If project requires additional funds at a later stage, we will offer a new block of Limited Partnership units. Our alumni members would be offered the first option to purchase the newly offered units at the current value, then any new units left unsubscribed would be offered to members of other Pratten Properties syndication groups, and finally to qualified prospective members. What happens to my income if the property burns down and the zoning changes? All our properties have income insurance coveragepaid for by the tenantsthat will continue to provide you your income until such time as the building is replaced and the income stream is recovered. Do you ever suspend distribution of cashflow to the Limited Partners? No. We have a contingency fund in place to prevent such an occurrence. Each month we distribute 90% (depending on certain factorslike the size of the largest tenant) of the net cashflow of the property to our investors. The 10% not distributed is put into a reserve fund to smooth out any inconsistencies in cashflow disbursements that may come up if a tenant leaves and is not immediately replaced. When a level deemed appropriate is reached, the balance once again is added to the member-partners monthly disbursements.

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How often do you keep in touch with your member-partners? First of all Thank you for the compliment! It is our custom to proactively keep members informed of important new developments pertaining to their investment, so that they are never left wondering whats going on at your investment property. By means of general newsletters, as well as timely letters and announcements, we actively take it upon ourselves to keep you abreast of the significant events that affect your investment as they happen. We do this proactively so that we can continue to focus on one important thing: managing the investment rather than the investor. What will my accountant need to know? For some of you, this will be your first experience with a privately offered investment and thus your first exposure to an offering memorandum and risk acknowledgement form. Private investments offering profit potential such as ours have historically been reserved for individuals classified as Accredited investors. This accreditation refers not only to the level of their wealth, but also to their ability to acknowledge the risks and benefits associated with private investments. Pratten Properties believes that it is important for each of our new members to become familiar with the language and structure of a private offering document. By educating yourself in these matters you qualify yourself to participate in other exceptional private investment offerings when they become available. You may require professional counsel to explain certain elements of these documents. It should be noted however, that not all lawyers or accountants have the experience or qualifications required to advise you adequately. If you are unsure about the level of sophistication of your legal and accounting representation, we have taken steps to assist you. Our Lawyer will make himself available to discuss any questions that your lawyer may have regarding these documents. In addition we have asked our accountants at the Victoria branch of KPMG (the Largest Public accounting firm in Canada) to make select members of their team available to advise you at your request. (This consultation will be at the expense of Pratten Properties.) They are uniquely able to provide you (or your accountant) with specific strategies on maximizing the tax efficiency of this investment in your portfolio that your accountant may not by privy to. It sounds too good to be true. Although this is technically not a Frequently Asked Question, we hear this comment from prospective members often enough that it makes sense to address it here Our teams of experts have all worked diligently to make our organization just as good on the inside as it seems on the surface. Everyone in Pratten Properties organization, from the founding partners to the resident managers, as well as our legal team and their counterparts at KPMG, were invited to work with us because they share the same passion for perfection in their work, as we do in ours. If that sounds old-fashioned to you, again we thank you.

When you have read this informational material in its entirety, just click this text to download the Executive Summary for our current syndication project.

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INVESTMENT HIGHLIGHTS
PROVIDES A CONSISTENT AND REGULAR QUARTERLY CASH DISTRIBUTION
Attractive yield relative to other income funds with a targeted annual cash yield of 8 to 15%. Distributed cash is paid monthly and is expected to increase every year. Overall return on investment in the neighbourhood of 15% plus..

ATTRACTIVE ALTERNATIVE TO OTHER INCOME VEHICLES

Comparable Market Statistics (As of April 25, 2005)
Canadian Money Market Fund Canadian 1-year Treasury Bills Canadian Government Bonds Stock Index Private Mortgage Investment Pratten Properties Syndications R.O.I. Yield (Compounded Annually) 2.50% 2.75% 2.90% 5 - 8% 7 - 11.5% 15% plus

EXPERIENCED INVESTMENT MANAGER WITH AN ESTABLISHED TRACK RECORD

The Investment Manager is President and Chief Executive Officer of Exit Realty Abacus. Mr. Pratten lends over 40 consecutive years experience as an entrepreneur of real estate business including sales and leasing, construction, and property management. The Investment Manager is an experienced real estate developer and has actively developed and redeveloped income properties for over 40 years. The Investment Manager has personally been investing in income properties for over 38 years and owns significant income property both on his own and in partnership with other private investors. The Investment Manager is a licensed real estate agent in the Province of British Columbia. The Investment Manager is a member of the Victoria Real Estate Board, and a commercial division member and a Certified Commercial Investment Member candidate. The Investment Manager is experienced in all areas of the construction industry. The Investment Manager owns and operates a leading property management firm in Victoria, B.C. and is knowledgeable in all areas of property improvement, rehabilitation and management.

HIGHER RETURN AND LOWER RISK THAN OTHER INVESTMENTS

Returns are in the range of 15% plus. Investments are secured by tangible and quantifiable assets as collateral. Investors are protected against principal debt. Rigorous due-diligence process includes mandatory third party appraisals, and, where appropriate, environmental reports and engineering reports. Interest yield enhanced through prudent use of leverage. All prospective acquisitions or disposals will be subject to the review and unanimous approval of Pratten Properties Investment Committee, prior to making any investment in, or acquisition of, a property. Generally, the property sector is relatively independent of other stocks and of bonds, and produces an attractive return comprising of capital appreciation and cash flow.

EXPERIENCED TEAM OF SPECIALISTS

See Biographies beginning on page 24 of this booklet entitled THE TEAM LEADERS.

TAX SAVINGS
Investments can be RRSP eligible. Profit disbursements can be paid out in a form which is not taxed as highly as regular income

TAILOR-MADE INVESTMENT POSITIONS

At the option of the investor, a consultant at KPMG will meet with investors on a one-onone basis for the purpose of structuring the investment to create maximum yield for each individual investor. This consultation will be at the expense of Pratten Properties, and not the investor.

or gains from interest or dividends. Due to the tax-efficient nature of a Limited Partnership Syndication, a 10% Pratten Properties return will out-perform a 15% stock-market return after tax. Investors are able to write off a proportionate share of the expenses and depreciation of the property to further reduce their taxable income. This can mean significant tax benefits for the investor.

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SPEAK WITH US PERSONALLY

We thank you for investing your time to acquire and study this information. When you are ready, click this link to download the Executive Summary for our current syndication project. If you still have questions left unanswered, or wish to be considered for membership in one of our private syndications, my partners and I are happy to make time to speak with you on the telephone, or in person. Your inquiry is invited with the assurance that it will receive prompt and expert attention. Our team is ready and able to assist you in achieving your highest real estate investment goals.

Thank you.

Alan Pratten President and CEO

Adam Gant Partner - Capital Development

Emanuel F. Arruda Partner - Communications & Operations

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