Calloway anticipates an initial investment of US $10 million inapproximately 50 acres of land. Upon completion, an aggregateinvestment of approximately US$35 million is expected. Callowayanticipates that the additional investments would be made on an'earn-out' basis and provide Calloway with a 6.2% to 6.4%pre-negotiated return in the first year of completion.

The properties include a 240,000-sf center in Portland and a260,000-sf center in Albany. The developments would be anchored bylarge format retailers. Completion of the developments isanticipated by early 2010.

In explaining the investment, Calloway president/CEO SimonNyilassy says Calloway's formula of investing in newly constructed,large scale centers with SmartCentres, its primary developmentrelationship in Canada, has worked well in Canada. "Both Calloway'sand SmartCentres' major tenant base is comprised of internationalretailers," he says. "We believe this formula can be appliedsuccessfully elsewhere." he says.