2011 News Releases

• Two-building complex is latest addition to Manulife Canadian Property Portfolio, a core open-end real estate investment fund

Toronto – Manulife Real Estate Funds has acquired a two-building, 159,237-square-foot, Class-A office complex located in Burlington, Ontario in a deal that closed October 11, 2011. The property was purchased for the Manulife Canadian Property Portfolio, a core, open-end, income producing real estate investment fund that invests in quality Canadian commercial real estate assets managed by Manulife Real Estate. The Fund is offered to institutional investors through Manulife Asset Management, the global asset management arm of Manulife Financial.

“We’re very pleased to be able to put our long established real estate expertise to work in a platform that allows investors to take advantage of what has been a sound asset class for Manulife for the last six decades,” said Kevin Adolphe, Chief Operating Officer of Manulife’s Investment Division and President and CEO of Manulife Real Estate. “The new Burlington property is considered as one of the premier business complexes in this key sub-market of Greater Toronto. It’s the quintessential combination of cost-effective accommodation and superb location – ideal characteristics for any successful real estate investment.”

Located at 5035-5045 South Service Road, at the intersection of Appleby Line in Burlington, the property provides immediate access to both the Queen Elizabeth Way and the GO Train commuter rail system. The complex consists of a six-storey office building and a 5-storey office building, both built in 1999, and is 94% leased with a strong, stable tenant roster, anchored by national financial services companies with long-term lease arrangements.

The Manulife Canadian Property Portfolio invests in quality commercial real estate with an emphasis on office and industrial assets in liquid, stable and economically-diverse markets across Canada. With the acquisition of 5035-5045 South Service Road, the Manulife Canadian Property Portfolio holds 15 income producing office and industrial buildings totaling approximately 2.2 million square feet with assets under management of C$290 million.

“We’re delighted to be adding this exceptional property to the Manulife Canadian Property Portfolio,” said Catherine G. Barbaro, President, Manulife Real Estate Funds. “The complex is an excellent complement to the portfolio and the acquisition is completely in line with the Fund’s strategy to provide institutional investors with an opportunity to invest in a quality, diversified property portfolio that offers income stability while also preserving capital.”

Manulife Real Estate, the global real estate arm of Manulife Financial, serves as the asset manager for the Manulife Canadian Property Portfolio which launched in February 2011, extending to investors the benefit of Manulife’s 60-plus years of real estate investment and management experience.

Notice to Investors
This communication is not, and under no circumstances is to be construed as an invitation to make an investment in the Fund nor does it constitute a public offering to sell units of the Fund. Subscriptions for units of the Fund will only be considered on the terms of the Offering Memorandum (the “OM”) of the Fund. Units of the Fund are only available for purchase by “accredited investors”, as such term is defined under applicable Canadian securities legislation. Purchasers may have statutory or contractual rights of action under certain circumstances as disclosed in the OM. An investment in units of the Fund is subject to certain risks and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. There is no market through which units of the Fund may be sold and none is expected to develop. Under certain circumstances, the Fund is entitled to suspend or restrict rights of redemption. An investment in units of the Fund is not intended as a complete investment program. An investment in units of the Fund should only be made after consultation with independent investment and tax advisors. Only investors who do not require immediate liquidity of their investment should consider the purchase of units of the Fund. Only investors who can reasonably afford a substantial impairment or loss of their entire investment should consider the purchase of Units of the Fund. Please refer to the OM for a further discussion of the risks of investing.

About Manulife Real Estate
Manulife Real Estate™, the global real estate arm of Manulife Financial Corporation, is actively involved in the ownership, management and development of commercial real estate. Totaling 32 million square feet, Manulife Real Estate’s portfolio includes a diversified mix of prime office, industrial, residential and retail properties in key metropolitan centers throughout Canada, the United States and Asia. In addition to equity real estate, Manulife Real Estate manages the space requirements and own use facilities to accommodate Manulife Financial’s more than 24,000 employees worldwide. As at June 30, 2011, Manulife’s real estate assets represent a carrying value of C$6.4 billion (US$6.6 billion). Additional information about Manulife Real Estate can be found at www.manuliferealestate.com.

About Manulife Financial
Manulife Financial is a leading Canada-based financial services group operating in 21 countries and territories worldwide. For more than 120 years, clients have looked to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were C$481billion (US$498 billion) as at June 30, 2011. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.  Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.   

Manulife Real Estate Funds acquired 5035-5045 South Service Road, a two-building, 159,237-square-foot, Class-A office complex in Burlington, Ontario in a deal that closed October 11, 2011. The property was purchased for Manulife Canadian Property Portfolio, a core, open-end real estate investment fund that invests in Canadian commercial real estate assets.