WELCOME & OPENING COMMENTS

Armand Des Rosiers, Managing Director
   RBC Capital Markets Real Estate Group
 

An insightful presentation on the outlook for the economic performance of the Montreal market, including the key emerging trends in this region. What industries and sectors are driving job creation in this region? What is the forecast for employment and population growth for the Montreal area? How do the prospects for Montreal compare with the outlook for other major Canadian cities?

Mario Lefebvre, Director,
Centre for Municipal Studies,
The Conference Board of Canada
 

Introduction:
Suzanne Leclair, National Director, Commercial Division, First Canadian Title

Speaker:
Alain Dubuc is an economist and a Montreal-based journalist. He is a regular columnist for Montreal’s La Presse, Quebec City's Le Soleil and five other dailies in Quebec.
 

Michel Bouchard, Executive Vice President, Strategic Advisory Services,
Altus Group
 

Sean Finn, Executive Vice President, Corporate Services and Chief Legal Officer, CN, and former Chairman of the Quebec and Canadian Chambers of Commerce.
 

MORNING REFRESHMENTS

CONCURRENT SESSIONS (Select A1, A2, or A3)                     

Session A1
THE MONTREAL DOWNTOWN & SUBURBAN OFFICE MARKETS: WHAT CAN WE EXPECT IN 2009 AND GOING FORWARD?
The session will open with an overview of the office market performance over the past year including a comparative analysis with the 1990 results. While the Montreal office market witnessed some surprising strength during 2008, were are vacancy rates, cap rates and other underlying leasing and investment fundamentals heading at this time? How are the major demographic, investment and economic factors influencing and potentially reshaping the market? What is the outlook for demand and investment activity for 2009 and beyond? Are tenants still pushing for greener buildings and environments in this market?

Do they have a strong preference over older buildings vs. new buildings or downtown space vs. suburban locations? What are the most important criteria in their leasing decisions in the current market conditions?

Moderator:
Michel Bouchard, Executive Vice President, Strategic Advisory Services,
Altus Group

Panel:
Lloyd Cooper, Senior Vice President, Cushman & Wakefield LePage
Michael Emory, President & CEO, Allied Properties REIT
Richard Hylands, President, Kevric Real Estate Corporation
Sandra Levy, President & CEO, Liberty Sites Ltd.
 

Session A2
FINANCING IN AN INCREASINGLY VOLATILE ENVIRONMENT:
WHAT IS THE OUTLOOK FOR THE DEBT MARKET IN 2009? HOW HIGH WILL SPREADS GO? HOW HARD IS IT TO FIND A SOURCE?
The credit crunch continued to escalate throughout the past year, having a strong impact on the pricing and the availability of debt. The CMBS market vapourized, risk was significantly re-priced by the remaining lenders, underwriting standards and LTV requirements changed, and the debt market re-segmented itself. This session will focus specifically on the debt market and try to determine what borrowers can expect in 2009. Who will be the major providers of debt in Montreal and what will they be looking for? How are lenders likely to assess a deal and price it? What property classes are lenders avoiding, reducing exposure to, or increasing pricing for? How will the strategies of pension funds, insurance companies and other institutions vary from those of private debt capital sources? What will need to happen in order to reduce spreads and increase lending again? Will the CMBS market ever return?

Moderator:
Larry Waters, Director, National Accounts,
Real Estate, CIBC

Panel:
Jacques Aubry, Regional Vice President, Eastern Canada
   Desjardins Asset Management
Ross Brennan, Executive Vice President, Canada, Otéra Capital
Renée Laflamme, Vice President, Mortgage Loans,
   Industrial Alliance Insurance & Financial Services Inc.
Peter Sheehan, CFO, Plazacorp Retail Properties Ltd.

Session A3
THE QUEBEC CITY REAL ESTATE INVESTMENT MARKET: HOW IS IT PERFORMING?
The arrival of national and international investors in the Quebec City real estate market over the past eight years sparked a growing interest in the Old Capital on the Canadian real estate scene. This session will provide an update on how the office, retail, industrial and multi-unit residential markets are performing in Quebec City.

A panel discussion will examine the current strengths, challenges and distinctive aspects of this regional real estate sector. How have the recessionary economic conditions and tightening credit conditions affected leasing, investment and development in Quebec City? What strengths and opportunities are there still in this market? What is the outlook for 2009 and the next few years?

Moderator & Speaker:
Marie-France Benoit, Director,
Business Development, Altus InSite

Panel:
Guy Gionet, President & CEO, Solim
Danielle Jacques, Director, Leasing & Real Estate Management,
  La Capitale MFQ Real Estate Management
Philippe Meurant, Director, Development Department, City of Lévis
Claude Pellicelli, Vice President, Avison Young Quebec
Luc Perron, Vice President, Term Loans, Otéra Capital
 

Session B1
RETAIL REAL ESTATE IN MONTREAL: THE OUTLOOK FOR VALUE, GROWTH AND CASH FLOWS IN AN UNCERTAIN MARKET

A wide ranging panel discussion on the outlook for Montreal’s retail real estate market in 2009 as this sector deals with the turbulence of the economy and its impact on consumers. How are the economic conditions affecting value, growth and sales? How are retailers performing in the current environment? Does anyone appear to be a winner among the tenants as we head into 2009? Are there any growth prospects for retail in Montreal or are all retail development activity projects being put on hold? What strategies are retail owners undertaking in light of these market conditions? How significant are the valuation gaps for retail formats between regional malls, power centres, community centres and strip retail? What lies ahead overall for the Montreal retail real estate sector over the next year or two?

Moderator:
Jean-François Grenier, Senior Director,
Altus Geocom

Panel:
Éric Foster, Vice President, Leasing, Devimco Inc.
Jonathan Gitlin, Vice President, Investments, RioCan REIT
Jean Laramée, Senior Vice President, Eastern Canada, Ivanhoe Cambridge
Mitchell Moss, President, Crofton Moore
 

Session B2
STRATEGIC ASSET MANAGEMENT DURING TURBULENT TIMES: FINDING AND CREATING VALUE IN TODAY’S CHALLENGING REAL ESTATE MARKET
Changing market conditions require a rethinking of investment strategies. Notwithstanding the sluggishness of the economy and its impact on real estate asset classes, there are some opportunities to protect and build asset value during these challenging times. This session will examine the importance of strategic planning, goal setting, and capital allocation in these market conditions. How to differentiate your assets from what is more of a commodity market? What kind of leasing strategies might provide greater success in these times? Is it possible to create value from acquiring out-of-favour sites and properties and seeing something that no one else does? Is this an ideal opportunity to undertake green initiatives that will turn your properties into higher performance buildings?

How important are personal and corporate values, communication and relationship building in this market? What are some of the significant elements of successful strategies, e.g. understanding the investors’ mandate, thorough research and underwriting, risk analysis, clear definition of exit strategy and liquidity, compliance with fund criteria and risk/reward profile, independent investment review, strong strategic communication with property management and leasing teams.

Moderator:
Wayne Heuff, Executive Vice President,
Real Estate Investments, Cadim

Panel:
Paul Jussaume, Vice President & Managing Director,
   Colliers International (Quebec) Inc.
Danielle Lavoie, Vice President, Client Services, Arcturus Realty Corporation
Jacques Métivier, President, Redcliff Métivier Realty Inc.
André Shareck, Partner, The Redbourne Group

Session B3
WHAT DOES THE FUTURE HOLD FOR INVESTMENT ACTIVITY IN THE MONTREAL MARKET?

In 2008, a shift began in the amount of investment activity and the values of office, retail, industrial, hotel, and multi-unit residential properties in Montreal. Whereas real estate had remained in strong favour relative to other asset classes for many years, a changed environment was now evolving. The dramatic change in the credit markets had a major impact on the cost and availability of capital which in turn had implications for investment values and activity. This session will examine the performance of the Montreal investment market in 2008 and the current and emerging outlook for 2009 and beyond. How are these market conditions unfolding this year? While Class A properties appear to still be holding their own, how much of a growing weakness is there among non-trophy buildings? How do investor attitudes vary from institutional vs. private and domestic vs. offshore? Which product types are currently most favoured by investors? How do the investment trends in Montreal compare with other major Canadian markets? What will it take for deal flow to increase again?

Moderator:
Daniel Peritz, Senior Vice President, Canderel Management Inc.

Panel:
Jean-Louis Hamel, Managing Director, Real Estate Investment Banking,
   CIBC World Markets Inc.
Michal Kuzmicki, Managing Partner,
   Brookfield Financial Real Estate Group
Nick Sabelli, Senior Portfolio Manager, Real Estate,
   Hydro-Quebec Pension Fund
Greg Spafford, Senior Vice President, LaSalle Investment Management
 

PRESENTATION OF THE UDI QUEBEC AWARDS OF EXCELLENCE

KEYNOTE SPEAKER

Marcel Côté, Founding Partner, SECOR Consulting

CONCURRENT SESSIONS (Select C1, C2 or C3)

Session C1
THE CHANGING DYNAMICS OF THE MONTREAL INDUSTRIAL REAL ESTATE MARKET
The session will open with a brief overview on current and projected investment trends, and vacancy and absorption rates in the industrial sector.
Many of the off-island markets, which had the strongest growth in recent years, are experiencing some of the challenges seen previously in more mature markets closer to the city. How is the battered manufacturing sector impacting demand for industrial space? Is this decline cyclical or structural? With operating expenses on the rise, what impact will greater cost competitive behavior by tenants have on owners? The industrial real estate sector has consistently ranked as a highly desirable product across a wide spectrum of investors. But faced with the current economic and credit market challenges, will this strong interest remain in 2009? Given the price of land, the softening economy and the rising cost of capital, how viable is new industrial development? What is the outlook for the industrial sector over the next 12 months?

Moderator:
Michael Mikelberg, Managing Partner, The Luger Group

Panel:
Bruce Burnett, President, Antrev Management & Consulting Inc.
Michel Cohen, President, Vista Properties
Thierry Lessoil, Managing Director, Real Estate, Sun Life Financial
Ramsay Lunan, Senior Vice President,
CB Richard Ellis Quebec Limited

Session C2
THE EVOLUTION OF DOWNTOWN MONTREAL: WHY ARE PEOPLE RETURNING TO THE CORE? WHAT PROJECTS ARE UNFOLDING IN RESPONSE?
A considerable amount of redevelopment and renovation projects are being planned or are underway in downtown Montreal and surrounding areas. These projects are in response to consumer interest and an increasing market potential in intensification and renewal activity within the vicinity of the city’s core. A major shift is underway from the suburbs toward the downtown in Montreal as well as Toronto, Vancouver and Calgary.

The creative economy is giving rise to a new spatial fix and a very different geography – the contours of which are only now emerging. It is becoming clear that the most efficient and productive regions are the ones in which people are thinking and working – not sitting in traffic. Urban cores are again becoming centres for technology, jobs and economic growth. Leading-edge companies are recognizing the value of an urban location. The shift from the suburbs toward the downtown is most pronounced, as talented, ambitious people trade more space for shorter commutes. While we are in the early development of this new economic geography, one trend is clear: the history of economic development and of capitalism revolves around the more intensive use of urban space. The coming decades will thus probably see greater concentrations of people, increasing densities, and further clustering of industry, work and innovation in downtown areas. This session will examine some of the most significant trends in the greater Montreal core as it continues to evolve and renew itself as a 21st century urban village.

Moderator:
Philip O’Brien, Director, Viger DMC International Inc.

Speakers:
Georges Bossé, Vice President, Administration, Daniel Arbour & Associates (DAA) Inc.
Claude Marcotte, Associate & Senior Vice President, Real Estate
   Daniel Arbour & Associates (DAA) Inc.
Jacques Vincent, Co-President, Prével Group

Session C3
WHAT DOES THE FUTURE HOLD FOR THE CREDIT MARKETS? WHAT WILL PRIVATE EQUITY AND THE PUBLIC MARKETS BE DOING IN 2009?
The past eighteen months has seen a major swing from a market awash with low cost capital and high leverage strategies to a significant tightening of credit underwriting and depletion of private equity buyout opportunities. The cost of capital, the cost of equity and the sources of capital have dramatically changed. There was always lots of capital but things have changed quickly, and now there’s not enough equity to fill the gap. Deal flow and transaction activity significantly declined in the past year. Does anyone really have a clear understanding and control of what is going on in the credit markets? How much capital is on the sidelines? What are private equity funds and investors waiting for before they deploy? Will private equity step into the vacant opportunities created by the contracting debt markets? If so, at what price? What type of products and terms are they providing, e.g. mezzanine financing, joint venture, syndication? What is the outlook for credit and capital availability from sources of private equity in 2009? How has all of this affected the interest of the buyside and the capital markets appetite for the real estate asset class? What is the difference between the U.S. and Canadian experience?

Moderator:
Jean-Charles Angers, Managing Director,
   RBC Capital Markets Real Estate Group

Panel:
Ed Boomer, Managing Director, Kimco Realty Corporation
Scott Coates, Managing Director, Mortgage Investments, KingSett Capital
Alan Winer, President, Harbour Mortgage Corp.
Michael Zakuta, President & CEO, Plazacorp Retail Properties Ltd.
 

A discussion with senior real estate and institutional executives as they provide their perspective on real estate market fundamentals for 2009 and beyond. They will also offer their insights on the extent and continuation of the liquidity problem over the next twelve months, and their strategic thinking going forward. Among the other questions to be examined:

• How would they compare the current market conditions with those of the early 1990’s?

• How have the issues and challenges in the credit markets affected their investment decision-making?

• What will be the likely impact of credit market conditions on cap rates and real estate values in Montreal for the next twelve months?

• What are the most significant challenges, trends, risks and opportunities for investors and owners in the Montreal market?

• Are there any possible improvements expected in the credit and capital markets over the next twelve months? What will be the key determinants of such a change?

• What, if anything, will be done differently now as a result of these factors?

Moderator:
Armand Des Rosiers, Managing Director,
   RBC Capital Markets Real Estate Group

Panel:
Paul Campbell, President & CEO, SITQ
Sylvie Lachance, Executive Vice President & Chief Operating Officer,
   First Capital Realty Inc.
Alan Marcovitz, President, The Westcliff Group of Companies
Joel Ospovat, President, Sandalwood Management
Norman Spencer, Partner, The Redbourne Group