Presentation on theme: "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."— Presentation transcript:
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.
“Our mission is to provide buyers with long-term income and investments that consistently outperform other investments in their portfolio.” REIG Mission Statement
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: Prime commercial Real Estate in growing markets. Extensive due diligence, arranging finance & legal work. Investors become equity partners with REDEV on individual projects 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.
Past Projects Castleridge Plaza completed 2003 $12.2 million project Calgary, Alberta Average annual return: over 11% after tax. Dixie Road completed 2002 $6.3 million project Mississauga, Ontario. Average annual return: over 10% 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.
105 th 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 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 You deal with people and their associated emotions Leases quoted annually Tenants have a strong vested interest in keeping the property well maintained Leases tend to be long 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 Mortgage Payments Accountant Individual Investors ( Insured )
General Partner Richard Crenian, President REDEV Structure of the partnership Residents of Canada Limited Partners – form the collection of investors in Canada Non-Residents Non-Residents of Canada - Each have their name on title - Each have undivided interest with a share of equity equivalent to their investment amount Joint Venture Agreement
Our Business Partners Lawyers: Howard Sloan Goldman, Sloan, Nash and Haber Toronto, ON M5T 2Z5 www.gsnh.com www.gsnh.com Nan Stevenson First Cdn center ste Calgary, Alberta www.fieldlaw.comfieldlaw.com Accountants: Allen Sloan C.A Sloan Paskowitz Chartered Accountants Thornhill, ON L4J 1V9 www.sloanca.com www.sloanca.com Property Managers: Garry Hudson, CA Darton Property Advisors and Managers Toronto, ON M5H 1X9 www.dartonproperty.com www.dartonproperty.com David Judge Humford Property Management Inc. Edmonton, Alberta T5N 1R5 www.humfordmgmt.comhumfordmgmt.com Ken Lucianovich Humford Management Inc. Calgary, Alberta T2P 3E8 www.humfordmgmt.com 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 1 st 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 3 rd most competitive country in the world (2001)
Why Invest in Alberta? GDP per Capita 2 nd 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 Calgary- Edmonton 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 10 th largest exporter of oil World’s 3 rd largest exporter of natural gas World’s largest producer of Sulphur Strong efficient government: Ralph Klein
SCMP – August 8 th 2005 CAD$34Billion spent on oil sands in the past 3 decades. 2-3 times that will be spent over the next decade
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 CategoryVancouverTorontoCalgary Economic Growth Rate 231 Greatest Investment/ Capita on Education 231 Most Educated Population 231 Best Employment Rate 231 Highest Productivity Rate 231 Best Income Tax Rate 231 Lowest Retail Sales Tax 231 Greatest Investment/Capita 231 Best Real Estate Value/Sq Ft 321 Most Pleasant Climate 132 Best Overall Quality of life 231
Calgary Financial Hub for Western Canada Canadian Venture Exchange (Merger between Alberta & Vancouver Stock Exchange) 2 nd 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%