The McLean Group of Companies first acquired land near the corner of Boundary Road and Grandview Highway in Vancouver in the early 1980's. We were confident in the long term development potential of industrial land so close to downtown Vancouver so as adjacent properties came up for sale, we bought them. In building this land assembly, we became landlords to a patchwork of tenants: gift centre; mattress factory; stonemason; commercial dry cleaner; bakery; electronics giant; elevator test facility; tools wholesaler; and cigarette distribution facility, to name a few. We are very pleased that some of our traditional non-studio tenants such as Costco Canada and Roots Canada are still with us today. After the relocation of the Landing Gift Centre to new premises at 3605 Grandview Highway, the motion picture production side of the story began in 1987 with our acquisition of the existing business and buildings at 3596 Cornett Road known then as Northstar International Studios. This complex had been purchased in 1985 by Justis Greene and partners and fully renovated into what was then a sophisticated shooting and production space. Deciding to focus their energies and finances into what they knew best the partners decided to sell their asset and return to the production of film and television. The McLean Group purchased the building and quickly learned that the art of running a sound stage business is distinctly different from other real estate assets; an educational exercise that continues with success some fifteen years later. Northstar Studios, now known as Studio D, has operated at an 80% occupancy level or better since the asset was acquired in 1987 and remains one of our most popular facilities. As we acquired other buildings, our focus was still on commercial warehousing and similar uses. As long-term non-film leases expired, our practice was to fill vacant space with film and television tenants until a long-term tenant could be located, thus providing some short-term cash flow. However, by the early 1990's, four of the fifteen buildings were committed to the film and television business. Despite our best intentions to pursue our original residential and commercial development plans, we had stumbled into becoming studio owners and we operated with some bewilderment until 1995 when the first concept of building a full-service film studio was developed and our destiny was undeniable. After a careful analysis of the market, we decided to delay any expansion to coincide with the anticipated further growth of the industry in British Columbia. The industry at that time was producing $500 million per year. Today, approximately $2 billion worth of production is done in the province which contributes about $1.4 billion to the local economy and employs some 45, 000 people. We resurrected the expansion idea in 1997 when market conditions improved and the industry grew over 35% in both 1996 and 1997. Every industry study and stakeholder group at the time was decrying the shortage of premium sound stage and ancillary production space in Vancouver and warning that this would be a major obstacle to further growth of "Hollywood North". We listened to them and this facilities shortage created the market demand that gave birth to the “Vancouver Film Studios” concept. Northstar International Studios was officially renamed Vancouver Film Studios in 1998, and the first deal to construct six state of the art purpose-built sound stages and associated support space was struck. The site was fully secured when we closed Cornett Road in late 1999 and by the spring of 2000 we had a proper film studio lot, complete with the obligatory "West coast Cape Cod" style gatehouse. The site now comprises 40 acres, 30 of which are dedicated exclusively to motion picture production in 10 purpose-built sound stages and a variety of production support buildings. Before going into the ground on any project, we spend a significant amount of management time and energy on planning. For Vancouver Film Studios, we tried to learn lessons from the best and worst design features of studios in Vancouver, but most importantly, Los Angeles. We knew that if we were going to be successful in attracting productions to Vancouver, we had better be able to compare favourably with the best facilities in the world. Thanks to the generosity of our American friends in sharing information combined with the suggestions of our consultants and architects, we were able to incorporate some innovations involving construction materials and dimensions, power, and soundproofing that were unprecedented. Construction of the first new structure, Building G, commenced in September 1999 and was completed in February 2000. The facility opened to rave reviews since Vancouver crews had never worked in a building with such quality construction and innovative improvements. This type of feedback is a constant at Vancouver Film Studios; we are frequently told that this is the best production facility in North America. We have always invested in infrastructure at the construction phase - choosing to lay fibre and build our network backbone at the outset rather than tacking it on as an expensive afterthought. The technological demands of our tenants are increasingly complex and we have been well served by this foresight. Construction of Phase II (Buildings J and C) commenced in March 2000 and was opened in August 2000. Small renovations of buildings D, F, and several support buildings also occurred during this period. Construction of Phase III (Buildings B & E) commenced in January 2001 and was completed July 2001. Construction of Phase IV (Building A) commenced in November 2001 and opened in April 2002. Building A consists of two sound stages; Stage A1, 12,500 sq.ft. and Stage A2 15,000 sq.ft. Construction of Phase V (Buildings H & I) commenced in December '02 and opened in April '03, a record time achieved by our construction contractor, Norson Construction, who repeatedly distinguish themselves by completing high quality projects on time and on budget. H and I are 15,000 sq.ft. each. Future construction is planned and will, as always, be based on market demand. Today, the Vancouver Film Studios site is barely recognizable from the start of new construction in 1999. We now operate several production support divisions through Pacific Backlot Services: lighting and grip; telecommunications; lifts and equipment rentals; transportation; waste and janitorial; signs and graphics; Studio Air Group; and office equipment. These service businesses are an excellent compliment to our existing real estate assets. The film industry is an exciting and vibrant business, where there is never a dull moment. We are very proud of our achievements and especially our excellent staff and we look forward to growing the business further as opportunities arise.