The Fund targets stable geographic markets with attractive long-term demand and supply characteristics, but its diversification strategy can evolve based upon changing market conditions, the point in the real estate cycle, and investment opportunities in a given market. Primary Target Markets were selected based on top-down research, which incorporates market fundamentals (supply, demand, vacancy and rent growth), relative pricing and required returns, in conjunction with bottom-up market knowledge from Bentall Kennedy's acquisitions and asset management teams. Within each Primary Target Market, submarket and asset selection are critical success drivers. The Fund prioritizes submarkets that have high barriers to new supply (geographic, political, cost structure, etc.) and demand drivers that are both sustainable and expected to recover from the current downturn more quickly than the overall economy.

The Management Team believes there are Additional Target Markets that are generally more susceptible to supply imbalances but frequently have solid demand characteristics. Investments in these markets will be considered using the same top-down/bottom-up paradigm used to identify and assess Primary Target Market investment opportunities, but with added consideration of supply risks as well as the timing of the local real estate cycle. Furthermore, the Fund may investigate investments in markets beyond the Primary and Additional Target markets should market conditions warrant.

In addition, MEPT evaluates opportunities based on the merits of each individual asset. In order to insure that each asset will create value, MEPT seeks investments where:

• Development of new assets at costs below current market values
• Acquisition of existing properties at or below replacement cost
• Building rehab and/or expansion, where appropriate
• Identifying opportunities to lease the asset at higher rents