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Disclaimer The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from InvestPlus ● (the “Company”) and should not be made available to any other person or entity without the written consent of the Company. The material contained herein is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy the securities. An offer can only be made by the Offering Memorandum and the appropriate exemption documents being provided to prospective purchasers. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investment in this project. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum and the Declaration of Trust . The information contained herein is not to be relied upon; investors should rely on the information described in the Offering Memorandum. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, expressed or implied, may be made as to the accuracy or reliability of the information contained herein. The only representations and warranties made by the Company would be those contained in an Offering Memorandum and a definitive subscription agreement. The InvestPlus Real Estate Investment Trust. intends to make regular distributions of its available cash to Unitholder, such distributions may be reduced or suspended and are not guaranteed. These offerings may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the offering documents for further information regarding these potential risks. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remain the same even if the value of the securities purchased declines. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for investors as described in the Offering Memorandum. 2
Profile InvestPlus Real Estate Investment Trust (IP REIT) is a private real • estate investment fund Based in Calgary, Alberta • Provides an opportunity to invest in a diversified portfolio of • multi-unit residential apartment and commercial buildings in western Canada Existing portfolio appraised $33,8mm comprised of 217 rental • units and 18,831 square-feet of commercial space 3
History Incorporated in 2004 • Acquired four properties through Joint Ventures - 2004 to 2008 • Acquired eleven properties through four syndicated Limited • Partnerships – 2008 to 2014 Divested of six properties 2010 to 2014 • Restructured into private InvestPlus REIT (IPR) with $39,6 mm • assets in 2015 4
InvestPlus REIT Portfolio Prince George (1 property ) Edmonton (6 properties) Calgary (2 properties) 5
Objectives Provide investors with stable quarterly distributions and generating • per unit growth rate superior to industry averages Grow and maintain a conservative, diversified portfolio of income- • producing multi-unit residential apartments and commercial assets in western Canada Maximize unit holder value through active internal asset and property • management Leverage management’s network of building owners and sellers and • its experience in driving under-performing portfolios. 6
5 Reasons to Invest into a REIT 1. REITs offer diversification and a level of stability, without sacrificing growth potential. 2. REITs provide exposure to real estate – real assets with tangible value and reliable income streams 3. REITs are distinct in their combination of relatively steady income, capital gains potential and tax benefits 4. Typically, REITs provide more attractive yields than other income investments. 5. REITs are subject to more stringent regulations in areas such as leverage and financial reporting, providing investors with an added layer of security. 7
Private vs Public Differences A Public REIT is listed on a stock exchange A Private REIT is not listed on a stock exchange. A Public REIT, while liquid, can be volatile. Traded stock investors can push values up or Private REITs are not liquid, however, down and to extremes very quickly redemptions and subscriptions are based because of liquidity and that becomes the upon the value of the underlying real estate new price, regardless of the underlying asset and not a traded market price which may be substantially different than the value of value. the underlying real estate. Public REIT’s have additional costs compare to a private REIT that are paid by the REIT, InvestPlus REIT as a private REIT isn´t exposed which reduces returns to investors in a Public to the extreme volatility of the stock market. REIT InvestPlus REIT can only be bought by Public REITs can be invested by Qualified Investors via Offering Memorandum or accredited investors only in Quebec. anyone 8
Private vs Public Similarities Most private REITs operate the same as Public REIT’s InvestPlus REIT, like a Public REIT’s has independent auditors InvestPlus REIT, like most Public REIT’s is a unitholder democracy (i.e. one unit one vote) Both Public and Private REIT's have Boards of Trustees Both Public and Private REIT's are subject to securities regulations and governance although the statutory requirements imposed on each may be different 9
5 Reasons to Invest in Western Canada 1. British Columbia expects to lead the provinces with economic growth of 2.4 per cent this year . -Globe & Mail February 16,2016 2. Manitoba is expected to have the second-fastest growing economy in the country in 2016, then follow that up with an even stronger 2017, according to the Conference Board of Canada. 3. Not since 2008/2009 have the current market conditions in Alberta provided an opportunity to purchase apartment and commercial buildings at discounted purchase prices. 4. Large millennial generation (1/3 of population) are choosing to rent vs buying. 5. In some circumstances new or newer purpose-built apartment buildings are selling below replacement cost. 10
Strategy Target and acquire accretive multi-unit residential apartments and commercial properties in growing suburban and urban markets in western Canada at superior cap rates. 11
Strategy Multi-unit Residential Apartments Target and acquire multi-unit residential apartment buildings that • operate with attractive margins and cap rates as a result of: No repair or maintenance of underground parking garage • Lower utility cost resulting from elimination of heating of underground parking garages • Lower property taxes in suburban markets • Cluster assets to provide for better efficiencies, less man power and • commanding rental position Maximize efficiencies through internal asset and property • management and advanced retention strategies 12
Strategy Commercial Buildings Target commercial buildings in urban and • suburban markets with a history of high occupancy and low tenant turnover Target lease-back-term buildings with triple net • leases and higher quality tenants Stagger term of leases • Leverage management’s network of building • owner and sellers 13
The York Case Study At Acquisition After Normalization The York – 45 Suites Calgary, Alberta Building was under-managed and tenant Renovated and repositioned the building to suit a higher paying tenant. profile did not fit the area Rents were significantly below market Upgrading cost: $1.2M Upgrading timeline: 18 months Purchase (Oct 2011): $6.8M Annual NOI: $263,460 Value Q2 2016: $9.2M 35.2% Building was refinanced in 2014 on favorable Annual NOI:* $464,350 76.3% terms *Based on YTD NOI as of Aug 31, 2016. and normalised to December 31, 2016
Beaumont Case Study At Acquisition After Normalization Beaumont Manor – 21 Suites Edmonton, Alberta Renovated the building and refinanced in Building was purchased during the credit crisis ($35/bpd oil) October 2009 and pulled out $320,000 in equity Value Oct 2009: $2,01M 17% Rents were significantly below market Annual NOI: $133,920 28% Purchase (March 2009): $1.51M Refinanced Oct 2009: $1,700,000 Annual NOI: $104,220 Equity take out: $ 300,000 Upgrading cost: $300,000 Upgrading timeline: 8 months Sold Jan 2014: $2,394,000 Total Invested: $600,000 15
RECENT ACTIVITIES • Acquisition of commercial building in Prince George • Sale of Centre Court building (55 suites) 16
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