REDEV Properties Investment PowerPoint Presentation.
Download
Report
Transcript REDEV Properties Investment PowerPoint Presentation.
REDEV’S
Real Estate Income Gain (REIG)
Program
Who is REDEV Properties Ltd?
Principals of REDEV have over 20
years of experience in Real Estate
development.
Developed over 1.2 billion dollars
worth of residential and commercial
real estate involving more than 11,000
units across Canada.
Successful and understand the
complexities of real estate investing.
REIG Mission Statement
“Our mission is to provide buyers
with long-term income and
investments that consistently
outperform other investments in
their portfolio.”
REIG Concept
70% of wealthy people have created their
wealth through Real Estate investing
The REIG, REAL ESTATE INCOME GAIN,
makes commercial real estate investment
opportunities available to the average
investor.
It breaks a large investment down into
smaller amounts and makes it easy to
participate
How the REIG works:
REDEV makes cash-flow from commercial real estate easier to
attain as it breaks down a large property into smaller parts
(on paper) to interests of $25,000 CAD equity or higher.
Prime commercial Real Estate in
growing markets.
Extensive due diligence, arranging
finance & legal work.
Investors become equity partners with
REDEV on individual projects
Past Projects
Dixie Road completed 2002
$6.3 million project
Mississauga, Ontario.
Average annual return: over 10% after tax.
Castleridge Plaza completed 2003
$12.2 million project
Calgary, Alberta
Average annual return: over 11% after tax.
Newport Village Plaza completed 2005
$12.3 million project
Calgary, Alberta
Average annual return: 9.8% after tax.
Past Projects
Shawnee Station completed 2005
$9.275 million project
Calgary, Alberta
Average annual return: over 8% after tax.
Trail South, Edmonton completed 2004
$9.5 million project
Edmonton, Alberta
Average annual return: over 8% after tax.
105th St Government Building,
Edmonton
Completed 2005, average return: 9%
REIG Investment Goals
Safety of Principal
•
•
•
•
•
Your principal is secured by the actual
real estate
Investors own the project
Investors are on Title as owners
Tangible Asset that you can actually visit
No risk-Asset is already built and
producing actual income today!
REIG Investment Goals
Ease of Management
•
•
•
•
All management decisions are
looked after by General Partner REDEV Properties Ltd.
All property management is looked
after by Property Managers
No investor will ever be called upon
to do anything
True ‘Armchair’ investment
REIG Investment Goals
Income Producing
•
•
•
•
•
Current income
Future income
Based on long term leases
Actual numbers, not projections
Actual Existing Asset
REIG Investment Goals
Liquidity
• A secondary market exists
• Protocol in which investment units
can be sold
• Medium to Long term investment
Security
The REIG offers absolutely the highest
level of security possible.
The investors own the Asset and are on
title as such.
A third party accounting firm acts as
Trustee for the investors. The Trustee
handles all of the money, distributes the
quarterly payments and issues all of the
tax forms required for the partners.
The tenants pay triple net leases and
carry the majority of the risk for the
owners.
Residential vs Commercial
Rentals quoted monthly
Leases quoted annually
Tenants have little
interest in maintaining or
improving the property
Leases are non-existent
or tend to be very short
Tenants phone you for
minor problems
Tenants have a strong
vested interest in keeping
the property well
maintained
Leases tend to be long
You deal with people and
their associated emotions
Tenants fix minor
problems
You deal with contracts
that stipulate the
remedies that the owners
can take
Current Project: MacEwan
CAD $4.33 Million
8.8% Average Annual Return
Investors
Lawyers Trust Account
(Insured)
Registered Land Title
(freehold)
Rental Income
Humford Management
(Insured)
Individual
Investors
Accountant
(Insured)
Mortgage
Payments
Structure of the partnership
General Partner
Richard Crenian,
President REDEV
Residents of Canada
Limited Partners – form
the collection of investors Joint Venture
Agreement
in Canada
Non-Residents of Canada
- Each have their name on title
- Each have undivided interest
with a share of equity
equivalent to their investment
amount
Our Business Partners
Lawyers:
Howard Sloan
Goldman, Sloan, Nash and Haber
Toronto, ON M5T 2Z5
www.gsnh.com
Nan Stevenson
First Cdn center ste
Calgary, Alberta
www.fieldlaw.com
Accountants:
Allen Sloan C.A
Sloan Paskowitz Chartered Accountants
Thornhill, ON L4J 1V9
www.sloanca.com
Property Managers:
Garry Hudson, CA
Darton Property Advisors and Managers
Toronto, ON M5H 1X9
www.dartonproperty.com
David Judge
Humford Property Management Inc.
Edmonton, Alberta T5N 1R5
www.humfordmgmt.com
Ken Lucianovich
Humford Management Inc.
Calgary, Alberta T2P 3E8
www.humfordmgmt.com
Why Canada?
Foreigners have title in their own name
Established country with good clean
government
Stable political situation
G8 leader in economy and growth
1st country to balance its budget in over 30
years
Most generous R&D incentives
Why Canada?
Educated, skilled and cost effective
workforce
Superior transportation and
telecommunication infrastructure
Supportive government policies
UN Survey: “Best Country to Live in” for
the 7 consecutive years
Voted 3rd most competitive country in the
world (2001)
Why Invest in Alberta?
GDP per Capita 2nd highest in world
According to a TD economic report the Calgary-Edmonton GDP
reached $40,000 USD per capita in 2000, exceeded only by the
GDP of Luxembourg
GDP is 10% higher than the average for the USA
GDP is 40% higher than for the rest of Canada
Over the past decade, growth in real GDP in the CalgaryEdmonton Corridor averaged 4.2% per year, 1 percentage point
above both the Canadian and U.S. averages
Fastest Job Creation in North America
Average annual job creation was one of the fastest in North
America over last 10 years
TD Report calls this area 'Canada's Western Tiger':
"Given all of its assets, the Corridor has enormous
potential - not only to widen its economic lead in
Canada further, but to become the most prosperous and
the best place to live in all of North America."
Why Alberta?
Natural resources found in
Alberta
World’s 10th largest
exporter of oil
World’s 3rd largest
exporter of natural gas
World’s largest producer
of Sulphur
Strong efficient
government: Ralph Klein
SCMP - August 3rd 2005
Alberta Housing
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Ye
ar
19
64
19
67
19
70
19
73
19
76
19
79
19
82
19
85
19
88
19
91
19
94
19
97
20
00
20
03
Average Value
Average Residential Selling Price in Edmonton
1962 to 2004
Year
Average Selling Price
Toronto
Edmonton Average Residential
Selling Price 1991 - 2004
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
$-
Edmonton Average
Residential Selling
Price
CAD$34Billion spent on oil
sands in the past 3 decades.
2-3 times that will be spent
over the next decade
SCMP – August 8th 2005
Budget Surplus
The Alberta
government is
committed to living
within its means.
Alberta has the
highest surplus as a
percentage of GDP in
2003-04.
Net Surplus around
CAD 15 Billion
Business Orientated
Fraser Institute's
measure of economic
freedom (which indicates
the fostering of economic
growth and prosperity
through minimal
government regulation
and taxation) rates
Alberta number one in
Canada as a place to do
business.
Financial Advantage
Alberta is the top province
in Canada for credit
worthiness. All major rating
agencies (Standard and
Poor's, Moody's, and
Dominion Bond Rating
Service) give Alberta "Triple
A", the highest possible
rating.
Potential of Calgary
Major Category
Vancouver
Toronto
Calgary
Economic Growth Rate
2
3
1
Greatest Investment/
Capita on Education
2
3
1
Most Educated Population
2
3
1
Best Employment Rate
2
3
1
Highest Productivity Rate
2
3
1
Best Income Tax Rate
2
3
1
Lowest Retail Sales Tax
2
3
1
Greatest Investment/Capita
2
3
1
Best Real Estate Value/Sq Ft
3
2
1
Most Pleasant Climate
1
3
2
Best Overall Quality of life
2
3
1
Calgary
Financial Hub for Western Canada
Canadian Venture Exchange (Merger
between Alberta & Vancouver Stock
Exchange)
2nd Largest Concentration of Multinational
Headquarters in all of Canada
Population: 900, 000 - Growing rate of 2.2%
Calgary
Highest educated workforce
Low unemployment rate
200, 000 new homes needed to meet
growing economy
Average of C$175, 000 per home
Increase in house prices approx 24% over
last 4 years
Commercial vacancies: below 3%
Industrial vacancies: below 2%
Calgary
Calgary
Invest Today
Equity Partnership Units are $25,000 per
unit.
You may purchase larger amounts
Average Annual returns of 8-10% plus
capital gain