What are Sunstone Opportunity Funds?
Sunstone Opportunity Funds are investment offerings that acquire revenue-producing commercial and residential real estate. These funds are nationally syndicated full prospectus offerings that allow investors to participate in cash flowing real estate opportunities in the same manner that large institutions invest. Sunstone's unique tax effective investment structure combines a Realty Trust Unit component and a Debenture Fund Unit, both of which are RRSP and RRIF eligible, into one partnership investment that acquires revenue-producing properties.

Who are the principals of Sunstone?
Darren Latoski and Steve Evans have over 38 years of experience in all facets of real estate investing, with over $735 million in acquisitions. They have a particular focus on value investing and repositioning assets through refurbishment and management improvements.

Why do Sunstone Opportunity Funds include a portfolio of properties?
Targeting a portfolio of quality commercial revenue-producing assets gives investors a more conservative investment, diversified by location and asset class, while providing a solid annual cash flow yield. The following pie charts are a summary of properties acquired by Sunstone to date.

                    Sunstone Properties by Asset Class
            
                      Sunstone Properties by Location
                

Have any of the principals lost money for an investor?
Over the 38 years of combined experience that the Sunstone principals have, they have never had any investment that has not returned all investment capital and a profit to their investors. The principals also invest alongside their investors.

What is the advantage to investing with Sunstone?
Sunstone is able to offer investors 38 years of experience and a multiple asset portfolio that is diversified by location and asset class, and inspected, appraised, analyzed and managed by Sunstone's team of real estate industry professionals.

Does Sunstone have a very large up-front fee load?
No, and our fees are fully disclosed in our prospectus. Our low fee structure and aligned interests mean that Sunstone can provide the very same level of all-in costs that individual buyers would incur. Historically, some structured real estate offerings have had high front-end fee loads that result in the investor paying anywhere from $1.15 to $1.25 for $1.00 worth of real estate. This resulted in lower yields and longer hold periods for such investors. With our institutional-style offerings, the total cost to investors is approximately $1.05 for $1.00 worth of real estate, which will result in higher yields. This is the same structure that many large institutions and high net worth investors utilize to acquire real estate holdings for their portfolios.

How are investors able to use their RRSP funds?
Sunstone strategically structures its prospectus offerings to allow investors to utilize their RRSP to invest in real estate. To satisfy the RRSP eligibility requirements, Sunstone has divided the investment equity into two components: 80% as an RRSP eligible Debenture Fund Unit that earns 8% per annum and 20% as an RRSP eligible Realty Trust Unit.

What is the advantage to holding the Realty Trust Unit outside of a registered account?
Sunstone purposely structures its offerings in this manner for tax efficiency. By structuring the offerings with 20% of the equity invested as a Realty Trust Unit, Sunstone allows investors who choose to invest this component outside their RRSP to receive annual tax deductions. When the investment is sold, any capital gains flow outside of the RRSP to the open investment unit thereby ensuring maximum tax efficiency with favorable capital gains treatment.

Are real estate investments too risky for an RRSP?
Professionally managed, cash flowing real estate is one of the most conservative and stable asset classes available to investors. Life insurance companies, pension plans, endowments and large institutions all hold significant portions of their portfolios in cash flowing real estate due to its conservative nature. With the advice of a financial planner, real estate investments can also help add diversification to an individual's portfolio.

When are distributions made?
Sunstone Opportunity Fund distributions are issued on a quarterly basis, on the 15th day of the month following the end of a quarter.

How do investors find out more about Sunstone?
For further information, please contact your financial advisor for information about current Sunstone offerings or visit www.sedar.com for a list of all of our public filings.