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| Buyer Beware
Howard Manley, Senior VP REDEV Properties
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Well winter is finally over and hopefully everyone can get back to normal. It seems the economy is turning around, interest rates are low and believe it or not, the stock markets are regaining some of the b ig losses that were encountered over the past year. I am pleased to say that our REIG program has done very well holding its values and maintaining cash flows. There are a couple of exceptions but this will be corrected shortly.
I have always advised clients when determining who you invest with to check the company, how it has performed in the past and what kind of security your investment has. Do you get title? Is there a third party trustee involved handling the cash distributions? Does the company have a good track record?
You all have probably heard there are a few companies in trouble that were basically trying to copy the REDEV REIG Program. Well as you have heard it is buyer beware. The reason I bring this to your attention is a competitive company in their promotional material show only the projects that REDEV has done in the past years as their only successful projects. Yes, they were marketing agents for REDEV and sold our products but that's were it ends. I question why they have not shown the projects that they have completed themselves, there must be a reason and it's a good question to ask. When I see this it raises some questions in my mind:
- What is it about their track record that they don't want people to know?
- If a company tries claiming some other company's projects as their own, doesn't that indicate that they feel those projects are superior to theirs? They wouldn't claim projects that were inferior to theirs.
- If this company thinks our projects are superior to theirs, why would you want to invest in the inferior project?
- Why not invest in the best?
We take what we do very seriously and have proven that over the past years and and again I would like to thank everyone for their support over the years and look forward to bringing new and exciting investment opportunities to you.
Howard Manley
Senior VP
REDEV Properties
howardmanley@shaw.ca
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Some Good News
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In these days of scary international economic news, it is good to see that there is some good news out there too. 
Associated Press reports that on May 5th U.S. Federal Reserve Chairman, Ben Bernanke told the Congress that the economy should pull out of a recession and start growing again later this year. "We continue to expect economic activity to bottom out, then turn up later this year" says Bernanke.
In other news, "Loonie Hits Highest Since Nov. 2008" reads the May 6th headline. In a May 2nd Reuters story titled "Canada's Central Bank Chief Sees Positive Signs" it states that "Canada's economy is faring better in the second quarter than it was at the start of the year..." Other recent headlines: "Stimulus Measures Starting to Work: BoC", "Bank of Canada Avoids Immediate Money Expansion", "Bank of Canada Sees Global Headwinds for Economy", "Flaherty Sees Signs of Recovery"....
We have recently seen a significant rally in the stock market that is encouraging and there are signs that the economy is beginning to stabilize. However experts do predict continued volatility in the markets.
In the February 16, 2009 issue of Newsweek magazine there was an article titled "Worthwhile Canadian Initiative" http://www.newsweek.com/id/183670 they had this to say about some positive points about Canada, "Guess which country, alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it's Canada. In 2008, the World Economic Forum ranked Canada's banking system the healthiest in the world. America's ranked 40th, Britain's 44th. Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn't grown in size; the others have all shrunk.....Canada has been remarkably responsible over the past decade or so. It has had 12 years of budget surpluses, and can now spend money to fuel a recovery from a strong position. The government has restructured the national pension system, placing it on a firm fiscal footing, unlike our own insolvent Social Security.....Companies are noticing. In 2007 Microsoft, frustrated by its inability to hire foreign graduate students in the United States, decided to open a research center in Vancouver. The company's announcement noted that it would staff the center with "highly skilled people affected by immigration issues in the U.S." So the brightest Chinese and Indian software engineers are attracted to the United States, trained by American universities, then thrown out of the country and picked up by Canada-where most of them will work, innovate and pay taxes for the rest of their lives."
In the March 24, 2009 edition of the Financial Post in an article titled "Finally, Good News for Alberta" it was announced that there was a merger "between Suncor and Petro-Canada to create a massive "oil sands-centric" corporation.....The new, bigger Suncor will rival the Royal Bank for the title of Canada's most valuable corporation. This Calgary-based enterprise, devoted to the oil sands, will join the ranks of the world's top 20 energy producers, in a "majors" league alongside Occidental Petroleum, Conoco Phillips and state-owned heavyweights such as Norway's Statoil and China's Sinopec.
"This merger really does create yet another Alberta 'Northern Tiger,' " said Mike Percy, dean of business at the University of Alberta. "It is clear that the board and management must have real confidence in the oil sands as a long-term play.""
Finally, in a March 25, 2009 Reuters article titled "EnCana files for 120,000 bpd oil sands
Expansion" they state "EnCana Corp and ConocoPhillips are asking regulators to approve a 120,000 barrel a
day expansion of the Christina Lake thermal oil sands project in Western Canada, according to documents filed with Alberta Environment....The planned three new phases of the project will raise production to 218,000 barrels a day...."
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REDEV Properties
4620 Manilla Road S.E. 480 University Ave., Suite 1600
Calgary, AB, Canada, T2G 4B7 Toronto, ON, Canada, M5G 1V6
Ph: (403)212-1953 Ph:(416)460-7779
Fax: (403)770-8537 Fax: (416)352-7591
Toll Free: 1-866-668-7344 Ontario Toll Free: 1-888-668-7344
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Featured Property
Sturgeon Plaza
REIG Highlights
- Sturgeon Plaza is a multi-tenant strip plaza.
- Excellent location and high exposure with daily traffic counts of 49,600 vehicles per day on St. Albert Trail and 26,500 vehicles per day on Hebert Road.
- Has a 3,200 sq. ft. pad with plans for a new building to be preleased and built on the site increasing lease revenue and property value.
- Located in the metropolitan Edmonton, Sturgeon is located at the first intersection in St. Albert providing easy access to commuters returning home from Edmonton and for local residents.
- Minimum investment $25,000.
- Projected average annual return after tax 15.02%
- Receive a tax deduction for 2009
- Receive any capital appreciation on the sale of the property
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Featured Investment
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REDEV's
RRSP Eligible REIG Program
Use your RRSP investments to profit from the lucrative commerical real estate market
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4% per annum return within your RRSP.
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Majority of growth is paid into share value - cash flow, equity growth and capital appreciation and paid to you outside the RRSP via tax advantaged dividends. -
Income splitting opportunites on portion paid outside RRSP.
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Secured by the commercial real estate. |
Contact Information:
Howard Manley - Senior Vice President
(403)212-1953
Wally Gbalajobi - Ontario Regional Manager
(416)650-0887 Ontario
(403)804-4486 Calgary
Allan Fulton
(403)381-2900
Clark Heimbeckner
(780)719-6883
John Tensen
(780)910-8702 |
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| Toll Free
1-866-668-7374
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