Optimism In the Air

Have you all felt it? There is a lot of optimism on the air waves, newspapers and political grandstanding . I believe we are in the start of another upswing in Commercial real estate. You ask me why I make that statement well I guess the proof what is happening. I have always said we can sell any of our properties ant any time, BUT timing is the most important factor. We have just placed two more of our properties under due diligence contract at a great return to our investors. When everyone else is trying to keep afloat due to bad management, prosecution and whatever, we are going forward. Our latest project Ellerslie Landing and Shoppers Drug and Giant Tiger partnership has been received with great interest and is selling fast. If you are interested go to our web site and listen to the 45 minute presentation on this project or call your representative for more information.

Howard Manley
Senior Vice President, Redev Properties Ltd.

Investments In Canada Blog

Here is a transcript of my latest chat with our media consultant.

I just read what the National Association of Realtors came out regarding the US housing situation, and they’ve stated that more than one in four housing transactions in the US, paid for their purchases on an all cash basis, which means no mortgages. 100% bought by cash.

And then there was a separate survey, also according to them, where they found that investors are now jumping into the US buying these empty homes and apartments.

From November to January, this year, buyers buying homes jumped to 17% from 12%. And when asked in the survey what those people are doing with those units, the answer was “renting them out.”

Now I am a little puzzled by why they would be renting them out. There is a glut of apartment units on the marketplace, today in the US. If you have a glut now and people are buying more units to rent out, what happens to rent?

My only guess is that if you oversupply, you’ll have a drop in rent. So where is the investment in this case?

In Canada, there is still some concern about a potential housing bubble and the Canadian government, through Canadian Mortgage and Housing, (CMHC), has been talking about raising guidelines to make it harder for home owners to buy.

That is a good approach, being proactive! Canada does not need to see any failure or share a similar fate as to what happened in the US.

With Redev Properties, we continue to meet our goals on our income growth, commercial investments. It works for us. We focus on cash flow, income growth along with value add. That is what we do best.

We have a proven performance record that speaks for itself. We stay focused and ahead of the crowds. We stay away from trends and do what we do best.

Yours truly,

Richard Crenian
President, Redev Properties Ltd.

Our New Online Seminar Is Now Available!

We have been very happy with the response we have had to our online seminar and we have had a lot of inquiries as to when we would have our new seminar up that also tells some of the details of our new Real Estate Income Gain (REIG) Project in Edmonton. We are happy to announce that it is now up and running.

Quick News

• In the last quarter of 2009 Canada’s Gross Domestic Product grew at the fastest annualized rate since the third quarter of 2000
• Canadian economy expanded by 5% in the fourth quarter of 2000
• Canadians are feeling more optimistic, in RBC’s recent consumer outlook index, 62% expected the economy to improve in the next year.
• A lot of the growth was spurred by increased consumer spending

Featured Properties: Ellerslie Landing and Shoppers Drug Mart/Giant Tiger

Ellerslie Landing

• Ellerslie Landing is a multi-tenant strip plaza
• Excellent location and high exposure with daily traffic counts of 23,100 vehicles per day on Ellerslie Road and 14,100 vehicles per day on 91 Street SW.
• Buildings were completed in 2008
• The immediate area along Ellerslie Road has developed into a strong retail corridor with numerous notable tenants such as Rexall, Starbucks, Shoppers Drug Mart, Tim Horton’s, RBC, TD, Scotiabank, CIBC and BMO
• Minimum investment $25,000.
• Projected average annual return after tax 15.11%
• Receive a tax deduction for 2010
• Receive any capital appreciation on the sale of the property

Shoppers Drug Mart/Giant Tiger

• The property is a single building (approximately 40,166 sq. ft.) two-tenant plaza.
• The two tenants, Shoppers Drug Mart & Giant Tiger both have long term leases
• Excellent location one block west of the intersection of Stony Plain Road and 149th Street, an extremely high traffic area.
• Located directly north of Jasper Gates Shopping Centre, a 149,460 sq. ft. centre anchored by Safeway and London Drugs.