Cash Flow from Ownership in existing shopping malls in Canada CALGARY TORONTO HONG KONG BANGKOK JAKARTA DUBAI TOKYO KUALA LUMPUR SINGAPORE
REDEV Properties Simple. Stable. Secure Cash flow from ownership in existing shopping malls in Canada. Even in these challenging times our investors earn immediate income of 5% - 9% p.a. plus capital gain from existing, stable and secure Canadian assets. Now you can with REDEV Properties. Our business model is simple: 1. Redev acquires prime commercial real estate in growing Canadian cities. 2. You then become a percentage owner in an existing shopping mall. 3. We then maximise the revenue potential of the shopping mall. 4. After five years, Redev sells or refinances the mall, at a substantial profit, which is then paid to you. You receive income streams in four ways: 1. Immediate income from existing long term leases 2. Withholding tax returned, where applicable, from year two onwards 3. Equity build-up as the mortgage principle is paid down, at the end of the five year term 4. Capital appreciation a historic average total of 28% per annum REDEV Properties is: NOT Land Banking NOT Bonds NOT a trust fund NOT a REIT REDEV is direct ownership. Canada's banks are ranked number one globally with an AAA rating by Standard & Poors
Experience: Redev is a Canadian company owned and operated by Canadians. We have been in the real estate business in Canada since 1981. During this time, we have successfully developed over 11,000 units and currently have 27 shopping malls under management. Redev has extensive local knowledge and experience so that even in a global economic downturn, our shopping malls were able to increase in value as rents continued to steadily rise. So you can rest assured that your property is in stable and secure hands. Conventional and Tar Sands Oil Deposits Oil sands production 1m+ barrels per day CAD34.4bn (USD27.9bn) projects built from 1996-2004 CAD24.6bn (USD19.9bn) invested in 2008 Major Projects CAD33bn (USD26.7bn) +45.4% Y-O-Y Conventional oil & gas covers half of the province Alberta Energy Resources 80% of our investors live in Canada and 66% are repeat investors. The vast majority of our investors live in the areas where our properties are situated - this speaks volumes about the value and excellence of these locations. Howard Manley Senior Vice President & Co-founder REDEV Properties Why invest in shopping malls in Canada? Canada has a population of 33 million. In fact, its population is the fastest growing of all the G8 nations. Edmonton In Canada, there is only half the square footage per capita of mall area as compared to the USA. This in turn means that demand for retail space remains high, so the malls enjoy very high occupancy rates. Canadian commercial properties might be a profitable investment in coming years. says Fairfax CEO who patterns his investments after the Warren Buffet model of value investing. South China Morning Post. Nov 2009
Why invest in Alberta? Next only to Luxemburg, the Calgary Red Deer Edmonton corridor has the highest GDP per capita in the world. Household income is high due to the area being rich in natural resources such as oil, natural gas & coal. This creates a ready consumer market for retail businesses. Demand is increasing as the population grows which means these businesses can easily survive and grow - even in recessionary times. In addition, Alberta has the lowest vacancy rates for commercial real estate in North America. This means that commercial rents continued to rise, even in recession. Alberta also enjoys the lowest unemployment rate in North America and well below the Canadian national average. Four Ways of Increasing Value Why Invest In Edmonton? Commercial Properties Vacancy Rates 2002-2009 Cashflow & Value 4 Capital Gain 3 Add Square Footage 2 Rental Increases 1 Existing Cashflow Time 2002 2003 2004 2005 2006 2007 2008 2009 2.9 Safe: Stable and Secure: Canada has a very safe and stable economy. Canada s banks are ranked number one in terms of stability by Standard & Poors and the World Economic Forum. Canada has a long history of sustained economic & property price growth and has enjoyed twelve consecutive years of fiscal surplus and, unlike many other countries had a trade surplus. Because we own the shopping mall before we offer it to you, you can be sure that we are 100% confident in our investment especially important in these uncertain times. All of the malls we offer you are fully occupied. This means that all of our properties pay you immediate and steady cash flow from day one. This recession came to an end relatively quickly in Canada largely because of the fact this was NOT a made in Canada recession CIBC World Market Guess which country, alone in the industrialised world has not faced a single bank failure, calls for bailouts or government intervention? Yup, it s Canada Newsweek, February 2009 The reason for this buoyant economy can be summed up in one word Energy. Canada has a natural bounty of raw resources that includes the world s largest reserves of oil & natural gas, uranium, fertiliser - potash & sulphur World Economic Forum Canada has the world s second largest oil reserves, second only to Saudi Arabia and enough to last for the next 250 years. In addition, Canada is the largest supplier of energy to its neighbour, the USA.
Commercial Vs Residential Real Estate There are many advantages for choosing commercial over residential real estate: Commercial Stable Tenants Long Lease (5-20 years) Strict Commercial Law Triple-net leases (tenants pay all costs) Low vacancy rates Tenants keep properties well-maintained Residential Month to Month Tenants Unpredictable, short leases Loose legal arrangements Owner pays for: Insurance, Upkeep of property, Damage to property, Management Fees, Mortgage if property is vacant Due diligence: REDEV Properties provides you with: Immediate income paid to you every six months low risk investment non-recourse mortgage hassle-free investment No additional out-of-pocket expenses via Triple-net leases Exceptional track record of building wealth Affordable entry level: At just CAD25,500 REDEV Properties provides an affordable entry level for investment. Latest News Recent new leases of existing or newly added space are commanding even higher rents than before the crisis: Redev goes through the lengthy and arduous process to acquire prime plazas, commonly identifying and assessing ten plazas before acquiring one. Redev buys every shopping mall before we offer it to you, so you can be sure that we have carried out the most extensive due diligence possible. Our thorough process includes: Background checks on the previous owner Environmental engineering tests Checks to ensure the correct ratio of established tenants including well-known brands such as government, banks, large retailers of everyday consumables etc. Local vehicular traffic count Age and condition of building Age, occupation & income of local population Potential land and industrial development projects Shadow anchor tenants Inglewood Plaza: Newly built extension, leased to a clothing store CAD32 per sq ft (Mar. 09) Sturgeon Plaza: New lease to an expanding restaraunt increased CAD34 per sq ft (Oct. 09) Broadview Plaza: New lease to an expanding clothing store CAD30 per sq ft (Mar. 09) Belmont Plaza: New building, new lease to Scotia Bank CAD36 per sq ft (Nov. 08) Edmonton International Airport Airport Ellerslie Landing Plaza: Average lease CAD 31 per sq ft (08-09)
Reputable Partners: We work with some of the most established names in the business to maximise the value of your investment. Please see below a list of our partners: Property Management Darton Property Advisors & Managers 257 Adelaide Street W., Suite 400 Canada M5H 1X9 Tel: +1 416 343 0078 Fax: +1 416 343 8716 www.dartonproperty.com Attn: Gary Hudson Chartered Accounting partners SPA Group 4646 Dufferin Street, Suite 6 Canada M3H 5S4 Tel: +1 416 665 7735 Fax: +1 416 649 7725 www.sloanca.com Attn: Allen Sloan Deloitte Touche 3000 Scotia Centre, 700-2nd Street S.W. Canada T2P 0S7 Tel: +1 403 503 1303 www.deloitte.ca Attn: David Zimmel, Partner Legal partners Goldman Sloan Nash & Haber 480 University Ave, Suite 1600 Canada M5G 1V6 Tel: +1 416 597 9922 Fax: +1 416 597 3370 www.gsnh.com Attn: Howard Sloan Field Law 400 The Lougheed Building 604-1 Street S.W. Canada T2P 1M7 Tel: +1 403 260 8500 Fax: +1 403 264 7084 www.fieldlaw.com REDEV Canada offices 4620 Manilla Road S.E. Canada T2G 4B7 Tel: +1 403 212 1953 Fax: +1 403 770 8537 1600-480 University Avenue, Canada M5G 1V6 Tel: +1 416 225 1608 Fax: +1 416 352 7591 REDEV Asia offices REDEV Properties 502 Golden Centre, 188 Des Voeux Road Central, Hong Kong Tel: +852 2815 9131 Fax: +852 2815 9828 REDEV Properties Singapore Pte Ltd Six Battery Road #31-00 Singapore 049909 Tel: +65 6321 9190 Fax: +65 6321 9198 REDEV JAPAN K.K. Yokohama Kannai Keihin Building 1001 2-4-2 Ougi cho,naka ku, Yokohama City, 231-0027 Japan Tel: +81 45 222 4711 Fax: +81 45 222 4712 Property Management Humford Management Inc. 808 4th Ave S.W., Suite 550 Canada T2P 3E8 Tel: +1 403 319 0490 Fax: +1 403 253 7586 www.humfordmgmt.com Attn: Ken Lucianovich CALGARY TORONTO HONG KONG BANGKOK JAKARTA DUBAI TOKYO KUALA LUMPUR SINGAPORE