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INVESTORS UPDATE

To Our Valued Investors,

For those of you I have yet to meet, I would like to introduce myself. I am Steven Butt, the President and
Founder of Avenue Commercial and feel honored to be the person for whom nearly 100% of you voted in
favor for as the new General Partner.

Over the past 18 months, I have had the pleasure of meeting, speaking and hearing the concerns of many
investors as we together have fought through many significant challenges to salvage your valued investments.
Now, after many emotional town hall meetings, court sessions, receivers meetings and countless hours of
work on the part of our in house team, our legal team and your steering committee, we have exited many of
the court proceedings and the future of your investment at last appears much brighter. As most of you know,
we suffered through extensive damage from a cash flow perspective as the court process initiated by Con-
crete Equities cost the Limited Partners in excess of 3 million dollars and we are coming out of restructuring
with numerous smaller creditors and over 3 million dollars in debt payable to the Strategic group. These are
not paltry obligations and it will take some time to retire our trailing debts but with hard work and a struc-
tured payment plan, we can and will shed these obligations over time.

A VENUE
COMMERCIAL
Creating Superior Real Estate Solutions
Suite 207, 1324 11th Avenue SW
Calgary, AB T3C 0M6
Phone: 403-802-6766
Fax: 403-802-6768
www.avenuecommercial.com
INVESTORS UPDATE

Rest assured, your valued investment is now in the hands of an experienced and capable team of pro-
fessionals who will work diligently towards ensuring the prosperity of your investment. For those of
you who do not know us, Avenue Commercial is a Calgary based company and is a prominent player
in the real estate sales, leasing and property management markets. In the last 5 years alone we have
transacted over five hundred million dollars of real estate and continually lease and manage significant
mixed use portfolios of properties including many properties similar to the ones in which you have
invested. Through our team at Avenue Commercial, your investment will be managed with the utmost
diligence and of course with full transparency and regular communication. I’m sure that this statement
alone will give many of you a reason to sigh in relief for the first time in a long time.

On the property management side, our team is headed by Jean Lekopoy, former President of BOMA
(the Building Owners and Managers Association of Canada), and we take great pride in our ability to
offer superior management services. At present, our team successfully manages a number of property
portfolios that include Office, Retail, Industrial, and Condominium projects.

In accordance with the vote by the Limited Partners, we are pleased to inform you that we have taken
over responsibility for all buildings under Safeguard I, II, III, IV and V. The newly created General Partner
entities are as follows:

Millrise Deer Valley LP Investment Corp


Castleridge LP Investment Corp
MEG LP Investment Corp
CEP LP Investment Corp
Lavalin LP Investment Corp

A VENUE
COMMERCIAL
Creating Superior Real Estate Solutions
Suite 207, 1324 11th Avenue SW
Calgary, AB T3C 0M6
Phone: 403-802-6766
Fax: 403-802-6768
www.avenuecommercial.com
INVESTORS UPDATE

Although we are not currently managing all the daily operations of all of these properties we have been
working with the present property management firms to create accurate and distributable records
which we feel we will have compiled in the very near future. We have also received approximately 200
boxes of files with approximately 300,000 pages of documents as well as various computers and hard
drives full of information relating to history of your properties. We are attempting to categorize and
scan this information with the hopes of making this information available to LP holders sometime soon.
Needless to say, we are diligently working away to organize and distribute information as quickly as
possible to all LP holders.

In summary, our team of asset managers, property managers and real estate professionals are commit-
ted to maintaining your assets in a manner that ensures your goals, objectives and expectations as an
investor are met and your return is maximized.

There is no doubt the past 18 months has delivered many challenges for us all, however, with the hard
work of many including our steering committee, our legal team and my employees at Avenue, we are
now well positioned to turn this unfortunate situation around to ensure the future of your invest-
ments.

I look forward to working with you and my sincere thanks to many of you who have been working
tirelessly away on the success of this endeavor for the past number of months.

Sincerely,

Steven Butt
Steven P. Butt
President
Avenue Commercial

A VENUE
COMMERCIAL
Creating Superior Real Estate Solutions
Suite 207, 1324 11th Avenue SW
Calgary, AB T3C 0M6
Phone: 403-802-6766
Fax: 403-802-6768
www.avenuecommercial.com

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