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| Breaking News
Howard Manley, Senior VP REDEV Properties
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As many of you may have
heard, Calgary based Concrete Equities has hit the news with some troubling
developments for their investors. As a result of the news and the number
of calls we have had asking about it we decided we would respond directly with
you about the situation.
Concrete Equities recently placed 5 of the commercial properties they have sold
to investors under bankruptcy protection.
It has been reported that the company president, in a sworn affidavit to the
Court of Queen's Bench, has blamed a former senior financial officer for
allowing the mortgage on the Lavalin building to lapse into foreclosure.
He also suggested that investor money may have been misappropriated for
personal expenses.
More than 200 investors with Concrete Equities protested outside the company's
offices on Monday of this week. They are looking for past financial statements
related to the ownership of the 5 buildings. One of the protesters said that
they had been informed that all their buildings were losing money and Concrete
wanted to sell the buildings. He also stated that the financial statements
haven't been released to investors in 3 years.
A group of investors are heading to court this week in an attempt to regain
control of their properties from Concrete Equities. The investors had voted to
replace Concrete as the general partner in the investments in accordance with
their limited partnership agreement. A number of the investors feel that the
filing for bankruptcy was done to prevent the change from occurring.
We at REDEV Properties have structured our investments in a way that prevents a
situation like this developing. We structured them the way we did to give
investors peace of mind.
1-When investors give us their cheque it is made out to
the law firm handling the deal. The funds go into a lawyers trust account until
closing.
2) A third party trustee handles all the cash received
from these properties and they handle the distributions to investors, the money
doesn't come to REDEV properties.
3) Each limited partner receives title to their unit.
4) We have a very recognized charter accountant firm
(Deloitte ) to prepare yearly financial statements and send out the required
T5013 tax forms
If "Concrete" had structured their investments like this it would have protected their investors from the improprieties that have been alleged. Its going to be interesting to see when the
smoke clears what happened to a lot of the funds , I can only guess . Our
properties in most part are doing very well. There are a couple of projects
with short term hiccups which we are currently correcting with the potential to
be even more profitable down the road than projected.
We have already had one email this morning from an investor who had contacted
us about the Concrete Equities situation that expressed their happiness with how we
operate. The email said "I'm glad I invested with Redev and not anyone
else! Planning to invest with your company in the future, so no worries"
So a stern reminder whether you are investing with us or someone else follow
the 4 simple steps outlined above and I could add a fifth. Make sure you know
who you are dealing with. If their marketing materials or paperwork contain untruths, misrepresentations, or attempts to make themselves look better than they are then watch out! (see our last newsletter "Buyer Beware")
As one of the first companies in Canada to offer this kind of investment, we have had a lot of companies try to look like us and copy our success but there are few, if any, that have our longevity and successful track record.
Please call me personally if you have any concerns or questions. I also suggest
you check out our website www.redevgroup.com for our latest
investment, Sturgeon Plaza as it has been selling steadily.
Howard Manley
Senior VP
REDEV Properties
howardmanley@shaw.ca
403-212-1953
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Some Good News
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"Canada Retail Today-Reality!"
According to CIBC (Canadian Imperial Bank of Commerce),  May 29-09:
-Canada Retail is very stable
-Canadian retailing better than the US
-Canadian Retail sales less discretionary than the US
-Canadian consumer is in better shape than US, less debt per capita
-Canadian retail environment is in better financial shape
-Retail environment in Canada is less competitive than the US
-Canadian commercial real estate didn't expand as rapidly as the US
-Canada has a more conservative lending industry therefore no overleveraging"In these days of scary international economic news, it is good to see that there is some good news out there too.
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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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