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Special-purpose closed-end pooled funds of properties focused on particular property types or geographic markets. In these funds, MIL aggregates capital on behalf of smaller investors wishing to participate in larger income-producing asset pools .
Structure
- a series of special purpose companies each of which has a mandate to invest in properties in a defined segment of the real estate market based on product type or geographic location
- individual investors hold shares of the company, which distributes income on a pre-tax basis
- acquisitions are approved by the company's Board of Directors based on a pre-determined investment policy
Investor Profile
- the closed-end pooled vehicles typically appeal to a small or medium size investor, who requires exposure to a diversified real estate portfolio but who does not wish to actively participate in management decision making
- the vehicles can be appropriate for a range of investors, as they offer larger investors exposure to specialty "niche" products, and provides smaller and medium size investors with the capability of creating a diversified "core" investment portfolio.
- the funds vary in structure from full discretion to active management with a Board of Directors participating in approval of acquisitions. Ongoing managment of the asset is delegated to the manager
Morguard Residential Properties (1) Inc. (MRPI)
Morguard Residential Properties (1) Inc. (MRPI) is a closed-end pooled fund that invests in multi-family rental apartments in major Canadian centres. The emphasis is on assets of superior quality and location, but assets that provide value enhancement opportunities or properties that have been historically under managed or under-capitalized will be considered.
The existing portfolio consists of 1,269 rental units in 5 apartment projects located in Ottawa, Calgary and Fredericton with a value of $199 million.
Morguard Industrial Properties (1) Inc. (MIPI)
Morguard Industrial Properties (1) Inc. (MIPI) is a closed-end pooled fund with a mandate to invest in a portfolio of income producing industrial properties, that is diversified by both geographic location and business sectors and that will produce stable, attractive income yields with the potential for capital appreciation.
MIPI's investment focus is to maintain a critical mass of properties in the top growth markets across Canada that are well leased, high quality, liquid and cities in which Morguard currently has strong industrial operations and leasing capability. The fund will also actively pursue properties that are currently underdeveloped and/or under managed to provide an opportunity for the fund to create value by repositioning the properties.
MIPI is structured as a tax-exempt corporation under Part I Section 149 of the Canada Income Tax Act. The fund has a 10-year life and the existing portfolio consists of 23 properties comprising 2.5 million square feet with a market value of $206 million.
For further information, please contact:
Gordon Vollmer
Senior Vice President, Investments
gvollmer@morguard.com
(905) 281-5831
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