Tight credit markets and an uncertain economy are causing severe stress to many owners of real estate and mortgages. Compelling investment opportunities are expected to arise over the next 24 months.

Equastone is seeking opportunistic and value-added investments in office, flex, industrial and multi-family real estate assets that are:

	Underperforming and available at a disproportionate discount to “stabilized” property values
	Suitable for repositioning from Class B to Class A in markets with a large differential between Class A and Class B rents
	Available below “fair” value from motivated/forced sellers that are overleveraged and need to refinance
	Below replacement cost in markets with improving real estate and economic fundamentals as follows: positive net absorption; limited pipeline of new supply; limited exposure to real estate finance, home building and other construction sectors

In addition, Equastone will seek to invest in:

	Performing and non-performing first mortgages and mezzanine debt at a discount to face value and potentially foreclose on the underlying real estate
	Joint venture opportunities with third parties that need to refinance short-term debt and bridge equity due to over-leveraging in 2006-2007