MDC North American Real Estate Fund

MDC North American Real Estate Fund 1

MDC North American Real Estate Fund 1 was established in December 2007 as a private open-end mutual fund trust for an approximate term of six years. The objective of the Fund was to take advantage of the strong Canadian dollar, and invest in a softening US real estate market.

Units of the Fund were offered for sale to qualified investors at a price of $10.00 per Unit, with a minimum purchase of 2,500 Units. The Fund raised approximately $40 million CDN, and the majority of this money was converted to US dollars at par or better.

In November 2008, at the request of some significant Unitholders, the Board of Trustees unanimously agreed to a special distribution and ultimate wind-up of the Fund. Due to the increased economic uncertainty in the United States, and the dramatic decrease in available mortgage financing in the US, it was determined that the Fund would not be in a position to invest in any meaningful way in the US real estate market until late 2009 which changed the scope and intention of the Fund from those in place at the time it was initially established.

The US dollars were converted back to CDN, thus taking advantage of the significant decrease in the value of the Canadian dollar. In the end, the investors were paid an approximate 12.66% return on their initial investment and received a return of all capital invested over the 11 month duration of the Fund.