Want to invest in land development but don’t know where to start? PROPetual REIT offers a low-barrier, low-fee investment vehicle for investors of all types, exclusively designed for real estate development opportunities in Metro Vancouver.
PROPetual REIT, a private real estate investment trust, provides retail and accredited investors with the opportunity to create wealth through land development investment opportunities in Metro Vancouver. PROPetual REIT eliminates barriers to entry through a low minimum investment threshold ($5,000) that is registered funds eligible (RRSP, RESP, TFSA, etc.), and by leveraging the full network, capabilities and resources of Isle of Mann Property Group’s (IOM) vertically-integrated organization. PROPetual REIT provides investors an opportunity to diversify their portfolios while maximizing socio-economic impact through high-quality contributions to the built environment.
Capital that builds – PROPetual is unique among Canadian REITs
Rather than seeking steady, nominal cashflow distributions from income-producing properties, PROPetual deviates from the conventional REIT model by solely focusing on high-growth investment returns from land development projects. PROPetual REIT transforms land into functional contributions to socio-economic infrastructure while achieving above-average, risk-adjusted returns for its investors. PROPetual REIT maximizes overall ROI by the end of a 3- to 5-year development period through their experienced management team and progressive profit-sharing model that aligns management incentives with investors’ best interests.
Investors in the fund receive returns upon the completion of development projects through a unique, waterfall return structure that prioritizes investor returns ahead of generating a return for the developer. PROPetual REIT aims to deliver a target return of 15-20% for invested capital in each project.
“In the near term, our investment agenda will focus on development projects in Surrey and Langley, British Columbia, the two fastest growing markets in the Metro Vancouver region,” said Ravi Mann, President of PROPetual Capital Partners. “These municipalities arguably exhibit the best balance of real estate development market fundamentals. In particular, they are attractive for their perceived balance between home values and commute times to city centres, while leveraging Metro Vancouver’s global appeal and unmistakable beauty towards a higher quality of life.”
The PROPetual advantage
PROPetual REIT was formed after identifying a significant market inefficiency in the Metro Vancouver region. Many investors are ready, willing, and eager to invest in qualified development opportunities, but are unable to place funds due to several challenges, including: (a) an inability to secure strategically located properties; (b) insufficient resources (capital, expertise, experience, etc.); or (c) a lack of reputable and experienced managers to partner with. Fundamental to the success of PROPetual REIT is the backing and direct involvement of IOM—the infrastructure, expertise, and projects made exclusively available to PROPetual REIT investors by IOM are at the core of the fund’s strategic advantage.
• Preferred access to high-quality projects
PROPetual REIT’s portfolio grows sustainably due to its exclusive access to IOM’s existing queue of high-quality development projects. These strategically located sites are subject to detailed market research and cash flow analyses under multiple scenarios. Assessments are based on a foundation of conservative assumptions and market projections, while identifying a clearly articulated exit strategy for investors.
• Vertically-integrated organization
An investment with PROPetual REIT makes the full capabilities of IOM’s vertically-integrated organization available for investors’ benefit. With in-house development, construction and asset management capabilities, gaps in communication and accountability are eliminated, while maximizing efficiency of resources—this translates into a seamlessly executed project resulting in enhanced returns for investors.
• Aligned interests
All opportunities that are presented to the market are directly invested in by IOM principals. This serves as a credible indicator as to the merits of an investment opportunity and allows PROPetual investors to leverage IOM’s 25-year track record toward their own financial gain. Furthermore, investors can take comfort in knowing that management fees are directly tied to project performance, therefore interests are aligned to maximize profits.
PROPetual REIT provides shelter from market turbulence
Private REITs like PROPetual have common benefits. They can be an integral part of a well-diversified investment portfolio through low correlation to traditional stocks and bonds, and the inherent tangible security of the real estate itself. Perhaps most importantly for investors, REITs are subject to a high degree of oversight and therefore necessitate highly transparent management practices.
• Low correlation, diversification
Real estate is the classic alternative asset class with negligible correlation to traditional equity and fixed-income asset classes. As a result, REITs are a key factor to a well-diversified portfolio and contribute to maximizing portfolio returns, while significantly reducing volatility over the long term. PROPetual REIT adds an additional layer of diversification by investing in developments of various real estate asset classes.
• Tangible security, low volatility
Private real estate investment trusts have the inherent benefit of being secured against the real estate itself, which, unlike publicly-traded equities, cannot be traded by a click of a mouse or by computer-engineered trading algorithms. As such, real estate is not subject to the same level of volatility as the stock market, where profound shifts in market value can occur within an extremely short period of time.
• Oversight, transparency
REITs are subject to a rigorous oversight framework that includes documentation of managers’ responsibilities and reporting requirements, audited financial statements, and additional reporting that provides transparency into diversification, leverage, occupancy rates and sources / uses of funds. Furthermore, PROPetual REIT unitholders receive quarterly project status reports on active developments.
PROPetual REIT: Impact & ESG
PROPetual REIT takes great responsibility in its role as a global citizen, incorporating ESG targets into its strategy because it believes being socially conscious land developers and strong financial performance are intertwined.
Investing in PROPetual REIT means having a meaningful positive impact in the communities both locally and worldwide. Since its launch, PROPetual REIT has partnered with both World Housing Corporation and Veritree Technology Inc.
World Housing Foundation focuses on developing projects that build communities for families in dire need of safe, secure housing in developing countries across the world. PROPetual REIT commits to 100% funding of a new World Housing community for each new residential development project it brings to market in Metro Vancouver.
Veritree is the world’s first, fully-integrated platform designed to transform the restoration space through technology. Veritree provides a comprehensive toolkit to restoration partners allowing them to collect and manage ground-level data and deliver it directly to all stakeholders. PROPetual REIT Partners with Veritree to plant 100 acres of verified trees for every acre of land developed by PROPetual REIT.
For more information, key investment highlights or to initiate your investment, visit: https://propetualreit.com/.