Centrefund Announces $103 Million Acquisition.

TORONTO--(BUSINESS WIRE)--Nov. 24, 1997--Centrefund Realty Co(TSE:CFE.) Centrefund Realty Corporation announced today that it has entered into a binding agreement to purchase interests in 12 shopping centres comprising approximately 1,190,000 square feet of gross leasable area, for a purchase price of approximately $103 million. The properties, all of which are located in Canada, are predominantly anchored by major food supermarkets. In addition, a number of the properties are anchored by specialty retailers such as Canadian Tire, Zellers and Toys R Us.

"We are excited by the opportunity to acquire this meaningful portfolio of high quality, geographically diversified shopping centres," Peter F. Cohen, president and chief executive officer, said. "The portfolio offers the potential for value enhancement through the lease-up of existing space and the development of approximately 100,000 square feet of expansion space," Mr. Cohen added.

The purchase price will be funded by the assumption of existing mortgages, which the vendor will buy down to current market rates, and from the Company's available cash and lines of credit. The transaction is scheduled to be completed before the end of the calendar year.

At the vendor's option, subject to regulatory approval, up to $15 million of the purchase price can be satisfied by the issuance of subordinated debentures. These debentures will have a five-year term, bear interest at 6% per annum and be convertible at any time into common shares of the Company at $21 per common share.

Centrefund is engaged in the acquisition and ownership of neighborhood and community shopping centres in Canada and the United States. Upon completion of this transaction the company will own 45 properties containing approximately 7.2 million square feet of gross leasable area.

CONTACT: Centrefund Realty Corporation

Peter F. Cohen, 416/515-1400

or

Centrefund Realty Corporation

Steven E. Cohen, 416/515-1400