Bear Mountain Development - 4-YEAR FUNDING REQUIREMENTS

19-Nov-07

ASSUMPTIONS

Purchase price $400,000,000 CDN

1. This summary covers 4 years of development as of January 1, 2008.
2. Infrastructure costs for remnant lands are included.
3. Closing Date acquisition of all lands: March 1, 2008.
4. First Nicklaus Golf Course NOT included in totals
5. The Ridge: Approved for Casino, Convention Centre, Condo Hotel and CRUs.
6. Skirt Mountain Condos development excluded from this cost forecast, but listed in remnant lands.
7. Westin has agreed to brand the new Westin Annex hotel on The Ridge.
8. New Bear Mountain ownership plans to sell select parcels of remnant lands to other developers.
9. Remnant lands lot developments: site servicing included for individual remnant land lots.
10. Pending increased density (doors) for Highland and Skirt parcels have no cost value. Infrastructure costs for these-previously allocated.
11. Current detailed sales info: see Latest Sales Report Sept. 6, 2007on www.sherwoodassociates.ca/bearmountain (Financials)
12. Data in this summary provided by Bear Mountain CFO, David Lindsay per BMMP Investment Summary & PWC Confidential Info memorandum
13. Purchase Price in Canadian Funds. Interest Rate based on 7.5% compounded annually, except for initial asset purchase of $400M.
14. Interest totals, as indicated in column "G", will appear higher because they do not reflect paydown or release formula elements.
15. Operational costs included.
16. Select developments within the remnant lands (Site CC, SiteJJ, Site OO, Site Z) to be built out 2011- 2012, yet to be determined.
17. Column E "Cost" does not include interest
18. Developer's Profit is based on $2.5M per year
19. Operational Costs are based on $6M per month

Bear Mountain Development - 4-Year Funding Requirements Breakdown

 BEAR MOUNTAIN DEVELOPMENT - 4-YEAR FUNDING REQUIREMENTS (Jan. 2008)

Stage/Development Area Status # Units Revenue Cost Net Profit Tot. Int. 2008 2009 2010 2011 2012 2013 2014
Asset Purchase BMMP 400,000,000 45,000,000 430,000,000 215,000,000
CONDOS (Work in Progress)
Finlayson Reach Condos 60% Complete 163 99,700,000 28,000,000 71,700,000 2,100,000 30,100,000 0
Site BB - Soaring Peaks Condos Start 08 146 94,000,000 74,000,000 20,000,000 9,581,250 53,750,000 79,550,000
Stonehaven Condos Complete 32 21,000,000 100,000 20,900,000 0 0 0
Highlander Condos Start 08 208 136,000,000 95,000,000 41,000,000 14,916,250 53,750,000 106,156,250
Site II - St. Andrews West Condos Complete 62 23,100,000 100,000 23,000,000 0 0 0
SUB-TOTAL: 611 373,800,000 197,200,000 176,600,000 71,597,500 567,600,000 400,706,250

LOTS (Sold & Closing)

Stage 8 - Echo Valley Lots Closed out
Stage 9 - Echo Valley Lots Serviced 58 14,400,000 100,000 14,300,000 0 0 0
Stage 10 - Echo Valley Lots Serviced 40 9,000,000 100,000 8,900,000 0 0 0
Stage 11 - T-Home Lots Serviced 99 31,300,000 100,000 31,200,000 0 0 0
Stage 12 - Lots Serviced 36 12,000,000 100,000 11,900,000 0 0 0
Stage 13 - Lots Serviced 17 18,000,000 100,000 17,900,000 0 0 0
SUB-TOTAL: 250 84,700,000 500,000 84,200,000 0 0 0

CORPORATE OFFICES/CRU
INCL. 32,000SF 0 11,000,000 0 825,000 11,825,000 0

RIDGE CONDOS
AA Incl. 138,000sf Commercial (CRU) Serviced 491 395,000,000 263,000,000 132,000,000 32,625,000 172,000,000 295,625,000

Future Planned Developments

Nest & Mews (Condos & CRUs) 218 150,000,000 105,000,000 45,000,000 12,309,375 0 0 59,125,000 117,309,375
Fairview Close East (Condos) 60 23,000,000 17,900,000 5,100,000 1,979,437 0 8,492,500 19,879,437 0
Fairview Close West (Condos) 60 23,000,000 17,900,000 5,100,000 1,979,437 0 8,492,500 19,879,437 0
Village Green (Townhome Lots) 40 0 0 0 0 0 0 0 0
Briarwood (Condos) 120 47,300,000 34,100,000 13,200,000 4,077,415 0 0 20,532,200 38,197,115
SUB-TOTAL 498 243,300,000 174,900,000 68,400,000 20,345,664 0 16,985,000 119,416,074 155,506,490
2ND Golf Course and 83 Lots Not serviced 83 70,650,000 18,400,000 52,250,000 2,936,250 10,750,000 20,586,250 0 0
Built but not sold (approx. 15 units & CRU) 0 0 5,000,000 0 0 0 0 0
REMAINING DEVELOPMENT SITE SERVICES 30,000,000 0 4,459,375 16,125,000 33,459,375 0 0
ROAD: Bear Mountain Pkwy exchange 20,000,000 0 3,056,000 10,750,000 22,306,250 0 0
Developer's Profit 2,500,000 2,500,000 2,500,000 2,500,000
Operational Costs 72,000,000 72,000,000 72,000,000 72,000,000
TOTALS: 1933 1,167,450,000 1,115,000,000 518,450,000 180,019,789 1,291,050,000 1,076,668,125 191,416,074 227,506,490

Bear Mountain 4-Year Funding Requirement Breakdown

Bear Mountain 4-Year Funding Requirement Breakdown
 REMNANT LANDS PARCEL BREAKOUT

Stage/Development Area Status # Units Revenue Cost Net Profit Tot. Int. 2008 2009 2010 2011 2012 2013 2014
Site CC (100 Condos) 2011+ 100 100,000,000 70,000,000 30,000,000
Site JJ (50 Townhomes) 50 50,000,000 35,000,000 15,000,000
Site MM (Townhomes) 16 2,400,000 1,000,000 1,400,000
Site NN (3 Single Family Lots) 3 1,200,000 300,000 900,000
Site OO (60 Condos) 60 46,200,000 33,100,000 13,100,000
Site PP (Seniors' Housing) 0 28,000,000 20,800,000 7,200,000
Site QQ (15 Single Family Lots) 15 4,500,000 1,500,000 3,000,000
Site RR (23 Single Family Lots) 23 8,050,000 2,530,000 5,520,000
Site SS (8 Townhomes) 8 1,200,000 600,000 600,000
Site TT (8 Townhouses) 8 1,200,000 600,000 600,000
Site UU (16 Townhouses) 16 3,200,000 900,000 2,300,000
Site VV (20 Townhomes) 20 6,500,000 2,400,000 4,100,000
Site WW (16 Single Family Lots) 16 4,500,000 1,500,000 3,000,000
Site XX (32 Single Family Lots) 32 16,000,000 4,000,000 12,000,000
Site YY (82 Estate Lots on Skirt Mnt) 82 61,500,000 8,300,000 53,200,000
Site ZZ (10 T-Homes Lots on Skirt Mnt) 10 2,500,000 1,000,000 1,500,000
Skirt Mnt Condos 1497 187,125,000 0 187,125,000
Future Increased Density (TBD) 1000 80,000,000 0 80,000,000
Highland's Increased Density (TBD) 1000 80,000,000 0 316,480,000
Site BBB (72 Single Family Lots) 72 21,000,000 10,100,000 10,900,000
Site CCC (30 Townhome Lots) 30 4,500,000 0 4,500,000
Site DD (4 Townhome Lots) 4 600,000 0 600,000
Site EE (32 Condos) 32 1,900,000 300,000 1,600,000
Site FF (24 Townhome Lots) 24 1,400,000 300,000 1,100,000
Site N (75 Single and 8 T-Home Lots 83 27,600,000 6,900,000 20,700,000
Site O (28 Single Family Lots) 28 9,800,000 2,800,000 7,000,000
Site P (Commercial 50,000sf of Land) 0 1,000,000 0 1,000,000
Site Q (33 Cabins) 33 1,650,000 330,000 1,320,000
Site R (29 Cabins) 29 1,450,000 290,000 1,160,000
Site S (14 Single family Lots) 14 5,600,000 1,400,000 4,200,000
Site T (14 Single Family Lots) 14 7,000,000 1,400,000 5,600,000
Site U (20 Single Family Lots) 20 12,000,000 2,000,000 10,090,000
Site V (34 Cabins) 34 1,700,000 300,000 1,400,000
Site W (31 Cabins) 31 1,550,000 300,000 1,250,000
Site X(13 Single Family Lots) 13 5,200,000 1,300,000 3,900,000
Site Y (17 Cabin Lots) 17 850,000 0 850,000
Site Z (100 Condos) 100 50,000,000 35,000,000 15,000,000
SUB-TOTAL 4534 838,875,000 246,250,000 829,195,000

Bear Mountain 4-Year Funding Requirement Breakdown

Bear Mountain 4-Year Funding Requirement Breakdown