AGELLAN COMMERCIAL REAL ESTATE INVESTMENT TRUST ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2017 March 29, 2018 Table of Contents GLOSSARY OF TERMS .................................................................................................................................... 3 CERTAIN REFERENCES AND FORWARD-LOOKING STATEMENTS .................................................................. 7 NON‐IFRS FINANCIAL MEASURES ................................................................................................................. 8 LEGAL STRUCTURE OF AGELLAN ................................................................................................................. 10 GENERAL DEVELOPMENT OF THE BUSINESS .............................................................................................. 12 Three Year History ..................................................................................................................................... 12 Description of the Business ....................................................................................................................... 14 THE REAL ESTATE PORTFOLIO ..................................................................................................................... 18 Occupancy and Leasing ............................................................................................................................. 18 Geographic Diversification ........................................................................................................................ 20 Diversification by Asset Class .................................................................................................................... 21 Lease Expiries ............................................................................................................................................ 21 Tenant Mix ................................................................................................................................................ 22 DESCRIPTION OF THE PROPERTIES ............................................................................................................. 22 INDEBTEDNESS ............................................................................................................................................ 28 Credit Facilities .......................................................................................................................................... 28 Mortgages ................................................................................................................................................. 28 Debt Maturities ......................................................................................................................................... 29 CURRENCY AND INTEREST RATE HEDGING ARRANGEMENTS .................................................................... 29 Currency Hedging Arrangements .............................................................................................................. 29 Interest Rate Swap Arrangements ............................................................................................................ 29 RISK FACTORS .............................................................................................................................................. 30 Limit on Activities ...................................................................................................................................... 32 DISTRIBUTION POLICY AND HISTORY .......................................................................................................... 41 GOVERNANCE OF AGELLAN ........................................................................................................................ 42 Governance and Board ............................................................................................................................. 42 Senior Management .................................................................................................................................. 45 Biographical Information Regarding the Trustees and Executive Officers................................................ 45 Trustee Independence .............................................................................................................................. 47 Committees of the Board .......................................................................................................................... 48 Trustees’ and Officers’ Liability Insurance ................................................................................................. 49 Cease Trade Orders, Bankruptcies, Penalties or Sanctions ...................................................................... 50 INVESTMENT GUIDELINES AND OPERATING POLICIES ............................................................................... 50 Investment Guidelines .............................................................................................................................. 50 Operating Policies ..................................................................................................................................... 53 Amendments to Investment Guidelines and Operating Policies .............................................................. 54 CAPITAL STRUCTURE AND DECLARATION OF TRUST .................................................................................. 55 UNITHOLDERS RIGHTS PLAN ....................................................................................................................... 65 MARKET FOR SECURITIES ............................................................................................................................ 67 MATERIAL CONTRACTS ............................................................................................................................... 67 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS .............................................. 67 LEGAL PROCEEDINGS AND REGULATORY ACTIONS .................................................................................... 68 AUDITORS, TRANSFER AGENT AND REGISTRAR.......................................................................................... 68 ADDITIONAL INFORMATION ....................................................................................................................... 68 SCHEDULE A: CHARTER OF THE AUDIT COMMITTEE .................................................................................. 69 GLOSSARY OF TERMS In this Annual Information Form, the following terms will have the meanings set forth below, unless otherwise indicated. Words importing the singular include the plural and vice versa and words importing any gender include all genders: “2018 Annual Meeting” means the Annual and Special Meeting of unitholders scheduled for June 12, 2018, or if the meeting is adjourned or postponed, the date of the adjourned or postponed meeting. “affiliate” has the meaning given to it in Section 1.3 of National Instrument 45-106 — Prospectus Exemptions. “AFFO” means adjusted funds from operations as more particularly described under “Non-IFRS Financial Measures”. “ACFO” means adjusted cash flow from operations as more particularly described under “Non-IFRS Financial Measures”. “Agellan” or “REIT” means Agellan Commercial Real Estate Investment Trust, an unincorporated, open- ended real estate investment trust established pursuant to the Declaration of Trust under the laws of the Province of Ontario. “Agellan Canadian GP” means Agellan Management GP Inc., a corporation established under the laws of the Province of Ontario. “Agellan Canada” means Agellan Commercial REIT Holdings Inc., a corporation established under the laws of the Province of Ontario. “Agellan Canada Notes” means the subordinated unsecured promissory notes that were issued on closing of the REIT’s initial public offering by Agellan Canada to Agellan. “Agellan U.S.” means Agellan Commercial REIT U.S., Inc., a corporation established under the laws of the State of Delaware. “Agellan U.S. Notes” means the subordinated unsecured promissory notes that were issued on closing of the REIT’s initial public offering by Agellan. “Agellan U.S. GP” means Agellan Commercial REIT U.S. GP, Inc. a corporation under the laws of the State of Delaware. “Audit Committee” means the audit committee of the Board. “Board” means the Board of Trustees of Agellan. “Cash Revenue” means total property and property-related revenue plus amortization of lease incentives less straight line rent adjustment as more particularly described under “Non-IFRS Financial Measures”. “CBCA” means the Canada Business Corporations Act, as amended from time to time. 3 “CDS” means CDS Clearing and Depository Services Inc. “Canadian Class A Units” means the Class A limited partnership units of Management LP. “Canadian Class B Units” means the Class B limited partnership units of Management LP. “Code” means the United States Internal Revenue Code of 1986, as amended. “Corporate Governance and Nominating Committee” means the corporate governance and nominating committee of the Board. “CRA” means the Canada Revenue Agency. “Declaration of Trust” means the amended and restated declaration of trust of Agellan dated as of November 13, 2017, as it may be further amended or amended and restated from time to time. “Distribution Date” means the monthly date on which distributions on Units may be made by Agellan.