CURRENT'INVESTMENT'OFFERINGS'2016'

Transcription

1 CURRENT'INVESTMENT'OFFERINGS'2016' INVESTMENT'NAME: InvestPlus'Real'Estate'Investment'Trust'(REIT)' ' CONTACT'INFORMATION:' ShannonPineau ExemptMarketDealingRepresentative P: 403=872=4010 TF: 855=872=4010 E: W: Pleaseseebelowformoredetailsaboutthisinvestment.Ifyouwould likemoreinformation,pleasecontactmeatyourconvenience. PLEASENOTE:Theseprojectsummariesarenotacompleteofferingofsecurities andmustnotbereliedupontomakeinformedinvestmentdecisions.pleasereadthe applicableofferingmemorandumsbeforemakingyourinvestmentdecisions.all investmentsareofferedthroughourexemptmarketdealer WealthTerraCapital ManagementInc.

2 CONFIDENTIAL INFORMATION MEMORANDUM This is not a formal offering document. Prospective purchasers of this investment opportunity will be provided with a formal Offering Memoran-dum and will need to be qualified for investment prior to making any investment. No person has been authorized to give any information or to make any representation not contained in the formal Offering Memorandum. No securities regulatory authority or regulator has assessed the merits of the proposed offering or reviewed the formal Offering Memorandum. This investment opportunity is speculative and involves a high degree of risk. There is a risk that any investment made will be lost entirely or in part. Only prospective investors who do not require immediate liquidity of their investment and who can afford the loss of their entire investment should consider this investment. Forward Looking Information Disclaimer: These materials may contain forward-looking information as such term is defined under applicable Canadian securities laws. Forward looking information is disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action believed to be reasonable and includes future-oriented financial information ( FOFI ) with respect to prospective results of operations, financial position, rates of return, timing of the return of an investors capital contribution or cash flows that is presented either as a forecast or a projection. FOFI is forward looking information about prospective results of operations, rates of return, timing of the return of an investors capital contribution, financial position or cash flows, based on assumptions about future economic conditions and courses of action, and presented in the format of possible rates of return depending on prospective land values in the future. These statements are only predictions. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No financial outcomes can be guaranteed. NEW ISSUE January 11, 2016 $10 Million $10.00 per Unit COMPANY AND TRANSACTION OVERVIEW InvestPlus Real Estate Investment Trust (IP REIT) is a private Real Estate Investment Trust based in Calgary, Alberta. The Trust provides an opportunity to invest in a diversified portfolio of multi-unit residential apartment and commercial buildings in western Canada. Existing portfolio valued at $42,475,000, comprised of 272 rental units and 18,831 square-feet of commercial space The REIT s objective is to provide investors with stable quarterly distributions and generating per unit growth rate superior to industry averages The REIT intends to grow and maintain a conservative, diversified portfolio of income-producing multiunit residential apartments and commercial assets in western Canada Experienced management team and independent trustees INVESTMENT HIGHLIGHTS Geographical focus on western Canadian markets The REIT will target and acquire accretive multi-unit residential apartments and commercial assets in western Canada The REIT will target asset mix of 60% Multi-Family residential, 40% Commercial, creating risk adjusted returns Attractive Valuation metrics Private structure provides buffer from current stock market volatility Current debt to GBV of 64.2% Target distribution Yield of 5.5% Management and Trustees hold a stake in IP REIT of approximately 6% Future Growth Potential Enhanced scale through accretive acquisitions Value enhanced by management efficiencies, renovations, retention incentives and community building Value enhanced through refinancing activities

3 SUMMARY OF THE OFFERING Issuer: InvestPlus REIT Fund Structure: Mutual Fund Trust Offering: 1,000,000 Class A Trust Units Amount: $10,000,000 CAD Offering Price: $10.00 per Unit Minimum Investment: $10,000 CAD Yield: The units are targeting a distribution yield of 5.5% Over Allotment Option: The Trust has granted the underwriters the option to purchase up to 15% of the issue price to cover over-allotments, if any, excercisable in in whole or in part at any time not later than the 30th day following closing of the offering at the sole discretion of the underwriters. Use of Proceeds: The Trust will use the net proceeds from the Offering to fund the acquisition of additional multi-family residential assets and commercial real estate assets. Offering Bases: The Trust Units will be offered on a private placement basis by way of offering memorandum and to accredited investors Eligibility: Eligible for RRSP, RESP, RRIF, LIRA, TFSA etc. Distribution Policy: Unitholders will be entitled to receive non-cumulative distributions if as and when declared by the Trustees. It is the intention of the Trust (subject to available cash flow) to provide a 5.5% annual distribution payable on a quarterly basis (1.375% per quarter) Management Fees: Acquisition Fee: %, Fund-Raising Fee: 1.000% Closing: The REIT will have periodic closings monthly, until fully subscribed Liquidity: Quarterly Redemptions Redemption Fees: Year 1: 8.00%, Year 2: 6.00%, Year 3: 4% After 36 month hold, there are no Fees Selling Commission: Up to 5.5% available. The Trust may engage third party financial advisors or brokers to assist in the sales of the Trust Units on a brokered basis. In such circumstances the Trust shall pay a commission as negotiated on the sales of Trust Units by such third party financial advisors or brokers BOARD OF DIRECTORS Donald Leitch Domenic Mandato Ronald Gratton Alan Vaughan Chairman President, CEO Independent Trustee VP of Acquisition Richard Carl Independent Trustee

4 TRACK RECORD Hampton Lane 3 Beaumont 2 Suites: 21 Purchased Q2 2004: $920,000 Purchased Q2 2011: $1,710,000 Value Q2 2015: $2,450,000 Sold Q3 2013: $2,394,000 Tuscany Villa 2 Luxemburg1 Suites: 18 Suites: 23 (plus commercial) Purchased Q3 2004: $865,000 Purchased Q3 2011: $3,495,000 Sold Q4 2010: $1,575,000 Value Q2 2015: $4,350,000 Whitehouse 2 York1 Suites: 45 Purchased Q3 2006: $1,164,000 Purchased Q3 2011: $6,800,000 Sold Q3 2013: $2,300,000 Value Q2 2015: $9,900,000 Belvedere 2 Highland House1 Suites: 22 Purchased Q3 2008: $1,850,000 Purchased Q3 2011: $1,947,000 Sold Q2 2014: $2,340,000 Value Q2 2015: $2,525,000 Centre Court1 Forest Heights1 Suites: 55 Suites: 22 Purchased Q3 2009: $5,200,000 Purchased Q3 2012: $1,981,000 Value Q2 2015: $7,000,000 Value Q2 2015: $2,650,000 Metropolitan1 The Hudson1 Suites: 33 Suites: 18 Purchased Q3 2010: $3,000,000 Purchased Q3 2012: $1,746,000 Value Q2 2015: $3,950,000 Value Q2 2015: $2,100,000 Newport1 Cedar Peaks1 Suites: 16 Suites: 38 Purchased Q2 2011: $1,721,000 Purchased Q4 2013: $3,000,000 Value Q2 2015: $2,900,000 Value Q2 2015: $4,200,000 Centennial 2 Purchased Q2 2011: $1,710,000 Value Q2 2014: $2,340,000 1 The building is currently owned by the REIT. 2 The building was sold before the Declaration of Trust 3 The building is owned by a Joint Venture Partnership

5 ACQUISITION TARGET Assets under consideration as of Q Asset Class Building Suites Location Cap Rate Approx. Equity Needed Multi-Family 307 Alberta 8.50% $11.0M Multi-Family 128 Manitoba 8.10% $3.8M Multi-Family 130 BC 10.0% $5M Multi-Family 210 BC 6.75% $6.1M Multi-Family 87 Yellowknife 6.95% $4.8M TOTAL 844 $30.7M Comments Offer accepted (entered due diligence) Commercial, Gov't Building 15,000 sq-ft BC 7% $1.0M Off-Market deal Commercial 16,000 sq-ft Manitoba 7% $4.2M Commercial 32,400 sq-ft Alberta 7.06% $2.7M Commercial 104,000 sq-ft BC 7.0% $4.1 M TOTAL 92,400 sq-ft $12M FOR MORE INFORMATION, PLEASE CONTACT LESLIE TOTH - VP Sales & Marketing Office: Direct: ltoth@investplusproperties.com Web: Address: #404,921-5th Avenue SW Calgary, AB. T2P 0W9