Mainstreet's portfolio increases to 4,098 units with the acquisition of 359 units in Edmonton, Alberta. In addition, Mainstreet refinances mortgages with CMHC totaling $10 million at 4.66% for 10 years and disposes of a non-strategic asset for a gain of $600,000.

CALGARY, April 11 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the
"Corporation") continues to execute its business plan of further strengthening
its position in the "mid-market" rental apartment sector in Canada, and
consolidating its operations in four core markets - Vancouver/Lower Mainland
(Surrey), British Columbia, Calgary and Edmonton, Alberta and Greater Toronto
Area, Ontario.
With the acquisition of 359 units in Edmonton, Mainstreet's portfolio
will grow to almost 4,100 units. Of these new acquisitions, as of the second
quarter ended March 31, 2006, Mainstreet had closed the purchases of 152
apartment units. Acquisitions of the remaining 207 units are expected to close
at various times throughout the month of April 2006. These properties consist
of 14 garden style walk-up apartments with in-place rents that are priced
significantly below market rents, offering excellent potential for value
creation. They are clustered in close proximity to existing Mainstreet assets,
which brings associated operating and cost efficiencies. The total acquisition
cost of $16.6 million (approximately $46,000 per unit) was satisfied with
first mortgages amounting to $13.6 million at an average short-term interest
rate of 6.5%, with the balance paid in cash.
"These acquisitions are consistent with Mainstreet's strategy of
acquiring mid-market rental properties with strong value-add potential," says
Bob Dhillon, President & CEO of Mainstreet. "Properties are being acquired
well below replacement costs and market values and have in-place rents that
are significantly below current market rents. This presents an opportunity for
Mainstreet to apply its proven "Value Chain" model to renovate the suites,
increase rents, stabilize occupancy, and refinance the properties to create
higher market value."

Mortgages refinanced at lower interest rates
Mainstreet also obtained approval from Canada Mortgage and Housing
Corporation to refinance mortgages totaling $10 million at 5.22% interest
rate, maturing in February 2007, to a lower interest rate of 4.66% for 10
years. The refinancing is expected to be complete by April 30, 2006, which
will realize additional funds of approximately $2.4 million. Mainstreet
actively negotiates the refinancing of maturing debts which will enable the
Corporation to reduce its interest expenses and exposure to interest rate
risk.

Non-core Alberta property sold
Mainstreet disposed of a non-strategic, stand-alone asset totaling 66
multi-family residential units located in Red Deer, Alberta for $3.12 million
- a net gain of $0.6 million to the Corporation. The purpose of this
disposition was to improve operating and management efficiency by focusing
Mainstreet's operations in its four core markets.
Upon completion of the transactions noted above, Mainstreet's portfolio
in Edmonton will increase by 32% to 1,466 units compared to 1,107 units as of
December 31, 2005. The Company's total portfolio will increase by 8% to 4,098
units compared to 3,805 units as of December 31, 2005.

About Mainstreet
Mainstreet Equity Corp. is a publicly traded real estate company focused
on the acquisition, value enhancement, repositioning and management of
"mid-market" multi-family residential rental properties across Canada.
Mainstreet's common shares are listed on the Toronto Stock Exchange under the
trading symbol MEQ.