Notes to the Consolidated Financial Statements  continued 19 First Capital Inc. Transaction continued 20 Joint  Ventures 21 Property Management Fees Company required Gazit to provide additional cash of $5 million in return for the issuance of an additional $5.73 million of 7.25% convertible debentures based on a price of $84.34 per $100 principal amount plus accrued interest. The consideration paid and received on the acquisition was as follows: The Company was a participant in 14 joint ventures that own land, shopping centres, and shopping centres under development as at December 31, 2003. The Company’s participation in these joint ventures ranges from 50% to 80%. The following amounts are included in the consolidated financial statements and represent the Company’s proportionate interest in the financial accounts of the joint ventures: The Company is contingently liable for certain of the obligations of the partnership ventures and all of the net assets of the partnership ventures are available for the purpose of satisfying such obligations and guarantees (see note 22 (a)). Centrecorp Management Services Limited (the “Property Manager”) is responsible for all property management functions, including property administration, maintenance and leasing.  In December 2001, the Company formed a joint venture with the Property Manager to provide property management, operations, leasing and project management services in respect of shopping centre properties located in the province of Québec. During 2003, the Company earned $0.2 million (2002 – $0.1 million) in income from its 50% interest in the joint venture.  66 First Capital Realty Annual Report 2003 (thousands of dollars) 2003 2002 Assets $ 88,328 $ 59,855 Liabilities $ 52,730 $ 29,743 Revenues $ 7,788 $ 7,912 Expenses $ 3,515 $ 5,157 Cash  fl ow provided by (used in): Operating activities $ 4,753 $ 3,012 Investing activities $ (33,118) $ (17,276) Financing activities $ 26,477 $ 8,098 (thousands of dollars) First Capital Realty Inc. common shares $ 7,400 First Capital Realty Inc. 7.25% convertible debentures 23,747 7.25% convertible debentures interest accrued 503 Consideration paid $ 31,650 Shopping centres $ 54,763 Land and shopping centres under development 1,850 Working capital, including cash of $1,657 1,607 Mortgages payable (22,872) Future income tax liability (3,698) Consideration received $ 31,650