PALISADES SHOPPING CENTRE

PALISADES
SHOPPING CENTRE
OWNERSHIP
OPPORTUNITY
Calagary • Toronto • Hong Kong • China • Bangkok • Singapore • Dubai
AVERAGE 12-18% P.A.
IMMEDIATE STEADY CASH FLOW
AND ANTICIPATED CAPITAL GAIN*
Palisades Shopping Centre, Edmonton
Content
REDEV
ReDev at a Glance
2
Our Services
3
Track Record
4
Ownership Strategy
5
PALISADES SHOPPING CENTRE
General Information
8
Ownership Highlights
10
Financials12
*Past Performance of any real estate is no assurance of the future
Content
1
Shoppers Drug Mart, Jasper Gates, Calgary
Tim Hortons, Century Park Plaza, Calgary
Scotiabank, Ranchlands Village, Calgary
KFC, Ellerslie Landing, Edmonton
Canada Trust, Castleridge II, Calgary
Outback Steakhouse, Palisades Shopping Centre, Edmonton
ReDev at a Glance
Since 2001, ReDev has specialized in prime commercial real estate
in Western Canada. We have successfully acquired and developed
numerous residential and commercial properties and currently have
25 shopping plazas under management. We have previously developed
approximately 10,000 residential units.
We have over 30 years of experience, a 100% track record of success and
over 5,000 investors. Our management offices are in Toronto and Calgary
Warm regards,
Richard Crenian, President
2
ReDev at a Glance
as well as offices in Hong Kong, China, and Singapore.
Ranchlands Village Aerial View, Calgary
Our Services
We provide our investors with an “armchair ownership” in existing
Cash Flow Distribution
titled property:
TMX Equity Transfer Services
„„ Pick Profitable Property
distributes cash flow from each
We carry out an extensive due diligence process and invest our property directly to investors every
own capital first before offering to investors
6 months
➞ Strategic Purchase
TMX Equity Transfer Services is
„„ Offer Ownership Stake
owned by TMX Group, which owns
and operates the Toronto Stock
We offer an opportunity for investors to own property
➞ Direct Ownership
Exchange.
„„ Manage Property Profitably
We ensure the property is well-maintained and deliver stable income at its maximum potential
➞ Immediate Cash Flow & Equity Build-up
„„ Sell Property at a Substantial Profit
We find potential buyers and sell the property at a profit, subject to owners 2/3 voting approval.
➞ Capital Gain
Our Services
3
Whitemud Crossing, Edmonton
Track Record
Our Past Performance
Since 2001, 3/4 of our 5,000 investors live in Canada and 2/3 are repeat investors.
Our average net rate of return including capital gain is 17% per year.
Re-sale and Refinancing
2006
„„ Northmount Village SOLD
2011
„„ Bower Plaza, SOLD
2007
„„ Castleridge Plaza SOLD
2012
„„ Shawnee Plaza, SOLD
2013
„„ Century Park Plaza, SOLD
„„ Trail South REFINANCED,
2009
2010
Special Dividend Plus Capital Gain when sold
„„ Dixie Road Plaza REFINANCED, „„ 105 Street Gov Building, REFINANCED, Special Dividend Plus Capital Gain when sold
„„ Sturgeon Plaza, TRANSFER SALE
2014
Special Dividend Plus Capital Gain when sold
„„ Nottingham Plaza, SOLD
„„ Other Sales in Process
„„ Newport Village, SOLD
„„ Whitemud Crossing, REFINANCED, 4
Special Dividend Plus Capital Gain when sold
Track Record
Notes: * Past performance of any real estate is no assurance of the future
Ownership Strategy
[
[
Our Approach to Maximize Returns
Increase Rental Income & Value
1
2
3
Acquire
Manage
Sale / Refinance
• Look for high potential upside from property with current rents below current market
• Acquire commercial property at a competitive price
• Mitigate risks through non-
recourse mortgage loan
• Rent increases upon lease renewals
• Rent increases through redevelopment or expansion
• Tenants pay for all related costs, via
triple net leases, such as
maintenance, taxes and insurance
for the cost of a new building
replacement and up to 2 year
income loss to completion
• Sale: Realize an anticipated capital gain from sale of the property
OR
• Refinance: Realize tax effective equity build-up from refinancing and continue to receive rental income
Investors receive an opportunity to
own the property, while their risks are
mitigated
Investors receive an immediate stream
of income paid every 6 months, while
equity continues to build-up as rental
income pays down mortgage principal
and rental prices increase
Sale: Investors receive a capital gain,
subject to a 2/3 vote
OR
Refinance: Investors receive special
distribution, capturing mortgage
pay down and portion of property
appreciation
4 Stages of Added Value
4 Step Return
1. Immediate income from existing long term leases
Cash Flow & Value
4 Capital Gain
3 Add Value
2. Withholding tax rebate, where applicable1)
3. Equity build-up as mortgage is paid down
4. Anticipated capital appreciation
2 Rental Increases
1 Existing Cash Flow
Time
Ownership Strategy
1) Withholding tax deduction applied on non-resident owners and clawed back each following year
5
Why Alberta…
Why Saskatchewan…
Alberta and Saskatchewan have been and continue to lead the North American economy in all sectors
and are the “go to” places for expanding businesses.
Invest in Commercial Real Estate
• Steady cash flow from stable tenants
• Long leases (5 – 20 years)
• Strict commercial property law
• Triple-net leases where tenants pay costs, unlike residential properties
• Tenants keep properties well-maintained
• Growing demand & limited supply for commercial property
6
Ownership Strategy
Alberta
Saskatchewan
North America Map
PALISADES SHOPPING CENTRE
EDMONTON, ALBERTA, CANADA
Asset Summary
Property: Ownership Summary
Palisades Shopping Centre
Equity:$15,868,000
Northwest corner of 127th Street & 137th Avenue
Price: $28,500,000
12804 – 137 Avenue, Edmonton, Alberta, Canada
Anticipated Rate of Return: 12 – 18%* per year
Year of Completion: Including Capital Gain when sold
1995 (Renovated in 2007)
Ownership Type:Freehold
Payment Schedule: Total Rentable Area: twice yearly (every April and October) via TMX
54,514 sq.ft.
Occupancy Rate:100%
Average Rental Rate: Cash Flow paid to owners
Anticipated Ownership Horizon: Average 5 – 7 years*
$24.40 /sq.ft. /year
(compared to $29 market rate)
*Estimated based on past performance, which does not
assure future performance
Palisades Shopping Centre Aerial View, Edmonton
Ownership Highlights
9/30/2014
Google Maps
Property & Location
Well Secured
O
• Well established retail plaza
P
• Multi-tenant shopping plaza
• Located on 5.14 acres freehold land
• 54,514 sq.ft. in total rentable area
• Built in 1995 and renovated in 2007
Strategic Location in a Growing Region
● Other ReDev Plazas
• Prominent location in the heart of the Northwest commercial area
★
Palisades Shopping Centre
• Surrounded by high-income residential neighbourhoods
• High population density with daily traffic count of 93,300 VPD
• Situated along two major arterial roadways
• Easily accessible by public transport
• New LRT, to be constructed in the future, will bring more business
https://maps.google.com/?t=m&ie=UTF8&ll=53.544388,-113.490829&spn=0.241946,0.454559&z=11&vpsrc=0&ei=0mkqVKWaEtjf8QWR9oCYAg&pw=2
10
Palisades Shopping Centre, Ownership Highlights
Palisades Shopping Centre Retail Plaza, Edmonton
1/1
CIBC, Palisades Shopping Centre, Edmonton
Citifinancial, Palisades Shopping Centre, Edmonton
Rent & Tenants
Favorable Lease Terms with Upside Potential and Well-Balanced Tenant Mix
• Fully leased
• Significant upside from rental increases as current rates are below market
• Triple-net leases where tenants cover costs, unlike residential properties
Anchor Tenants
46%
Other Tenants
54%
• Low risk from diversified tenant mix
• 48% of rentable area occupied by anchor tenants (46% of net rental income)
• Stable income from major tenants such as CIBC Bank, Citi Financial, Safeway Wine & Spirits, Outback Steakhouse and Signature Orthodontics
• Other tenants include Jenny Craig, Grower Direct, Alberta One Stop Registry Total Net Rental Income
and restaurant chains
• Safeway Food & Drugs as a significant shadow anchor
Anchor Tenants
Other Tenants
Palisades Shopping Centre, Ownership Highlights
11
Financials
Key Performance Indicators
54,514
100%
$24.40
Total Rentable Area
Occupancy Rate
Average Rental Rate
sq.ft.
[
Anticipated Rate of Return of 12 – 18%* per year
(Net of Fees & Expenses)
Including Potential Capital Gain at the end of Ownership period
Cash Flow paid to owners twice yearly (every April and October)
Source of Funds
Ownership Equity
$15,868,000
56%
/sq.ft. /year
Mortage Loan1)
$12,632,000
44%
[
Ongoing Fees
Management & Administration Fee: Only $45,000 per $1,000,000 of Plaza
Rental Income, as shown on schedules2)
Total Source of Funds
$28,500,000
12
Palisades Shopping Centre , Financials
* Estimated based on past performance, which does not assure future performance
1) 3.50% Interest Rate, 5 year term, 25 years amortization period, non-recourse mortgage
2) Refer to Agreement of Purchase and Sale for details
Reputable Partners
ReDev works with established partners to help maximize the value of your property.
Accounting
Property Management
Sloan Partners LLP
Humford Management Inc.
4646 Dufferin Street, Suite 6,
808 – 4th Ave S.W., Suite 550,
Toronto, Ontario, Canada M3H 5S4
Calgary, Alberta, Canada T2P 3E8
✆ +1 416 665 7735
✆ +1 403 319 0490
http://sloangroup.ca
www.humfordmgmt.com
Attn: Allen Sloan
Attn: Ken Lucianovich
Deloitte
Avison Young
Suite 700, 850 – 2nd Street S.W.,
600 Cochrane Drive, Suite 220,
Calgary, Alberta, Canada T2P 0R8
Markham, Ontario, Canada L3R 5K3
✆ +1 403 267 1700
✆ +1 905 474 1155
www.deloitte.com
www.avisonyoung.com
Attn: Michael Smith
Attn: Ken Muir
Legal
Cash Flow Distribution
Goldman Sloan Nash & Haber LLP
TMX Equity Transfer Services
480 University Ave, Suite 1600,
200 University Ave, Suite 300,
Toronto, Ontario, Canada M5G 1V2
Toronto, Ontario, Canada M5H 4H1
✆ +1 416 597 9922
✆ +1 416 607 7899
www.gsnh.com
www.tmxequitytransferservices.com
Attn: Howard Sloan
Davis LLP
Suite 1000, Livingston Place West
250 - 2nd Street S.W.,
Calgary, Alberta, Canada T2P 0C1
✆ +1 403 296 4470
www.davis.ca
Attn: Nancy-Lynn Stevenson
ReDev Canada Offices
ReDev Calgary
4620 Manilla Road S.E.,
Calgary, Alberta, Canada T2G 4B7
✆ +1 403 685 1953
ReDev Toronto
4141 Yonge Street, Suite 201,
Toronto, Ontario, Canada M2P 2A8
✆ +1 416 225 5700
ReDev Asia Offices
ReDev Hong Kong
502 Golden Centre,
188 Des Voeux Road, Central, Hong Kong
✆ +852 2815 9131
ReDev Singapore
1 Raffles Place
#20-61 One Raffles Place Tower 2
Singapore 048616
✆ +65 6808 5882
www.redevproperties.com
Calagary • Toronto • Hong Kong • China • Bangkok • Singapore • Dubai