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Port Renfrew Development Trust
Location: Port Renfrew, British Columbia
Sector: Investment Fund
Port Renfrew Development Trust (the “Fund”) is a mutual fund trust created to take advantage of a unique real estate and development opportunity in Port Renfrew, British Columbia. The Fund will provide investors with the opportunity to participate in the potential gains from the acquisition, holding and potential development of the properties located in Port Renfrew (the “Properties”).
The Fund has been formed for the primary purpose of investing indirectly in the Properties. It is the objective of the Fund to provide Unit holders with distributions and capital gains upon the eventual disposition of the Properties.
Acquisition Value vs Current Appraisal
Our strategic acquisition of these lands from HSBC by way of the previous developer, has created, what we believe to be a significant benefit. Upon completion of this raise our equity in the project will reach approximately $8 million with a current valuation of $35 million; thereby creating potential security for our unit holders.
We further believe that by reducing some additional development requirements we can increase the current appraisal value.
We control the majority of residentially developable lands within the Port Renfrew Community. Such lands have been designated as growth lands in both the 2004 Regional Growth Strategy as again in the current Regional Growth Strategy.
There are only certain pockets of growth designated by the Capital Region District and the Fund controls the majority of those lands on the western side of the island.
Further, our lands are exempted from the Foreign buyers and non-resident tax which was recently imposed in British Columbia.
With the increase in baby boomers seeking smaller more affordable retirement or vacation properties we, as noted by KPMG, believe the Port Renfrew Lands offering a unique potential to capture this demographic change.
Fund Name: Port Renfrew Development Trust
Issuer: Port Renfrew Development Trust is a mutual fund trust established under the laws of the Province of Alberta, which will invest indirectly in units of Port Renfrew Management LP (the “Partnership”), which will in turn invest in the Properties.
Security: Class C Mutual Fund Trust Units
Issue Price: $14.00
Target Raise: $2.500,000
Minimum Investment: $5000
Term: It is anticipated that the General Partner will hold the Properties for six to eight (6 to 8) years from the date of the final closing of the Fund.
General Manager of the Partnership: Port Renfrew Management Ltd.
Investment Objective: The purpose of the Fund is to invest in the Partnership. The objective of the Partnership is to acquire, hold, prepare for development and potentially develop the Properties to generate attractive returns, while preserving capital.
Investment Eligibility: The Fund is a qualified mutual fund trust and as such, the Units are eligible for deferred and registered plans including, RRSP, TFSA, LRSP, RRIF, LIF. LIRA and RESP etc.
Management Fee: Valhalla Capital Group Ltd. (the “Manager”) will receive a monthly fee of $10,000 for the administration and management of the Fund. The Manager will also be entitled to receive a finder’s fee equal to 1.5% of any debt financing amount received by the Partnership, the Fund or the Business.
Compensation Paid to Sellers and Finders: The Fund will pay a sales commission to Registered Exempt Market Dealers of up to 10% of the Gross Proceeds. The Fund may further elect to pay a Wholesaler Fee of up to 2% of the Gross Proceeds to related or unrelated parties who assist in the management of the selling agents under the Offering.
Use of Proceeds: The Fund will use proceeds to pay offering expenses ($100,000), Sales Commissions ($300,000), Dissolution of debt ($575,000) and utilize the remaining as working capital for the real estate assets ($1,525,000).
Redemptions: There is no secondary market through which investors can sell their Trust Units, however the Fund does provide for redemption of Trust Units; in certain circumstances. For full details please refer to the Offering Memorandum as there are certain restrictions, terms and conditions for the redemption of Trust Units.
Jason Brown, Trustee, President of the GP and Manager
Jason Brown acts as a Trustee of the Fund. He is also a director and officer of each of the General Partner, Valhalla and WealthTerra. He has over 8 years of experience in the North American Capital Markets. Prior to 2012, Mr. Brown worked for a major North American land entitlement and development group with over $3.0 billion of assets under management. During that time, he was responsible for the Canadian operations; where the firm structured transactions and sourced capital in what was previously considered a non-investment grade asset class.
During his tenure he assisted, oversaw or was responsible for a broad range of investors and global markets, including the US, Southeast Asia and Europe. He worked closely with the firm’s land entitlement and development branch, where he was responsible for the approval of expenditures for the entitlement and/or development actives of each land holding.
Mr. Brown is currently the Chief Operating Officer and Director for WealthTerra. Previously, Mr. Brown contracted with Non-Government Organizations where he was responsible for policy development, organizational effectiveness, board governance as well organizational reorganization/redevelopment.
Karl Ablack, Trustee and Officer and Director of the GP
Karl Ablack acts as a Trustee of the Fund. He has been a successful business owner and consultant specializing in business development, sales & marketing development and sales team development. Mr. Ablack has over 25 years of experience in developing small and medium sized companies in both domestic and international markets. He has been successful in identifying undervalued assets and bringing them to their highest and best use while creating substantial profits.
From 1997- 2006, Mr. Ablack acted as President of Wilden, doing business as ExN’Flex International, the international business arm of Tecogics Scientific. Mr. Ablack was instrumental in building and constructing the international sales and distribution network for a Canadian based company specializing in the manufacture of therapy equipment for spinal cord injuries and neurological impairments. From 2007 to 2008, Mr. Ablack was engaged in reviewing and analyzing potential projects.
From 2009 to 2011, Mr. Ablack was the Sales Account Manager and Investment Specialist with Walton Capital Management, specializing in syndications for land based real estate investments.