PRIVATE PENSION PARTNERS ANNOUNCES LAUNCH OF APARTMENT PLUS REAL ESTATE INVESTMENT TRUST (“A+ REIT”)
Private Pension Partners Inc. (“P3”) is pleased to report that Apartment Plus Real Estate Investment Trust (“A+ REIT” or the “REIT”) has been formally launched as a private real estate investment trust with the mandate to acquire and hold multi-family rental properties provided that it may also hold a maximum of 20% of its net assets in strategic street-front commercial properties.
Moving forward, P3 will have two primary types of real estate investment vehicles:
- A+ REIT – Real Estate Investment Trust
A+ REIT is comprised of a portfolio of stabilized income producing, pension-quality properties with a targeted focus on newly built or substantially renovated multi-family rental residential apartments. A+ REIT is also permitted to hold up to 20% of its portfolio in tactical street-front and mixed-use commercial properties with the potential for additional apartment intensification. The key attributes of A+ REIT are anticipated to be:- Stable cash distribution;
- Value creation by focusing on services and building intensification;
- Conservative loan to value ratio of approximately 50-60%; and
- Long-term, passively oriented, and income focused open-ended trust.
- Feeder Limited Partnerships – Development Pipeline
Real estate development partnerships with a mandate to develop properties for acquisitions by A+ REIT upon stabilization. The initial feeder fund is Feeder One LP. It is comprised of an active four (4) property pipeline of residential and commercial development sites or properties in Winnipeg that provide investors with the opportunity to participate in the development cycle and expected capital appreciation of newly constructed properties that will better meet tenants’ increasing demands from a design, amenity, technology, health and safety perspective.The key attributes of Feeder One LP are anticipated to be:- Targeted 15% – 20% annualized internal rate of return (IRR);
- Allows participation in the four (4) specific developments at wholesale cost, not retail;
- Ability to benefit from highly accretive CMHC-insured financing; and
- Capital growth over the term of the LP and cash distributions periodically upon stabilization of developed properties.
Moving forward, the REIT will be asset-managed by P3 and will also benefit from a strategic alliance with P3 and its affiliates pursuant to which the REIT may assist real estate development partnerships managed by P3 (“P3 Feeder Funds”) with financing by providing debt guarantees or mezzanine financings in return for the right to acquire the development properties upon completion and lease stabilization at a prescribed discount to fair market value. The strategic alliance between P3’s Feeder Funds and the REIT will provide a dedicated acquisition pipeline of pension quality multi-family rental properties in its targeted markets across Canada, generating attractive organic growth.
The most recent addition to the Private Pension Partners group of companies is Private Pension Partners Investments Inc. (“P3I”), an exempt market dealer in Manitoba, British Columbia, Alberta, Saskatchewan, and Ontario. It was founded primarily to meet the ongoing corporate finance and capital raising needs of A+ REIT and P3’s Feeder Funds. P3I is expected to launch accredited investor equity raise programs for A+ REIT and Feeder One LP on October 1st, 2020 with targeted initial closings on January 1st, 2021.
P3 is excited to continue building on our track record of sourcing alternate investment products for pension funds, high net worth individuals, and family offices. Investors in A+ REIT and Feeder Funds can continue to expect the following through investments in private and direct real estate owned or developed by P3:
- Best in class, pension quality assets with a focus on large scale rental residential assets;
- Strong relationships with the community, institutions, service providers, and their tenants;
- Dynamic management team with cumulative “street-grade” real estate experience of over 100 years;
- Projects delivered on time and on budget as demonstrated by approximately $200 million of new real estate built to date;
- Planned growth into new geographies and businesses; and
- A strict adherence to a balanced risk management and long-term capital preservation mentality.
P3’s main value proposition for all investors continues to be the delivery of off-market, private, and direct investment opportunities in real estate by leveraging management’s extensive transactional, brokerage, and development experience with a disciplined bottom-up approach to capital deployment and preservation in premium locations.
For further information on the Private Pension Partners group of companies, please contact Don White, CEO, at 204-227-8898, or don@privatepensionpartners.com. For further insight into P3I’s capital raising efforts, accredited investors may contact Kevin Prins, President and Ultimate Designated Person (UDP) at 204-880-5146 or kevin@privatepensionpartners.com.
This announcement does not constitute an offer to sell or solicitation of an offer to purchase securities. An offering of securities, if made, will only be made pursuant to an offering memorandum, only to persons who qualify as accredited investors or under other private placement exemptions and only in jurisdictions where such securities may be lawfully sold.
This announcement contains forward-looking statements. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “expects”, “anticipates”, “will”, “estimates and similar expressions are intended to identify forward-looking statements. Investments in real estate entities are subject to significant risks and uncertainties which may cause the actual results, performance or achievements of such entities to be materially different from any future results, performance or achievements expressed or implied in forward-looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, debt financing, credit and tenant concentration, lease rollover, availability of cash flow, general uninsured losses, future property acquisitions and dispositions, environmental matters, tax related matters, changes in legislation and changes in the tax treatment of trusts, development risk, potential unitholder liability, potential conflicts of interest, potential dilution and reliance on key personnel. P3 cannot assure investors that actual results will be consistent with any forward-looking statements and no person assumes no obligation to update or revise such forward-looking statements to reflect actual events or new circumstances. All forward-looking statements contained herein are qualified by this cautionary statement.
