Magna International Spinning Off $1.1B Real Estate Unit

AURORA, ONTARIO-Magna International Inc. is seeking shareholder approval to spin off to shareholders 100% of its real estate under the name MI Developments. The company would operate as a new publicly-traded company and own all of Magna’s automotive real estate as well as Magna’s 59% interest in Magna Entertainment Corp., a previous Magna spin-off that is now North America’s largest owner and operator of horse racetracks.

MI Development’s real estate business will include assets with an aggregate net book value of approximately $1.1 billion as at March 31, 2003. MI Development’s income-producing portfolio would include 106 properties (totaling 24 million sf) in 10 countries with a net book value of $978 million. . Virtually all the properties are occupied by Magna and its operating subsidiaries under long-term leases. April 2003 annualized lease payments for the portfolio total approximately $110 million dollars.