We are working with a real estate investment manager that originates limited partnerships for the purpose of developing commercial real estate. This model offers strong upside: seamless scaling, sustainable earnings, and organic growth, with expected AUM of over $4 billion in 6 to 8 years. The investments combine the benefits of direct real estate investments, private real estate funds, and development joint ventures into a single vehicle that offers strong capital appreciation and high distribution yields, while at the same time providing all the transparency and liquidity that investors require.
Founded on 30 years of experience in the business of the procurement, development, and management of real property, the real estate partnership develops four classes of LEED-certified properties in or near big-box retail centres in North America.
According to the IEA, buildings are the largest categories of carbon emissions by dollar value and by overall emissions percentage, generating 40% of global primary energy consumption. New buildings are easier to build to LEED and BREEAM standards and these types of buildings are usually easier to rent, and so are better investments as well. As part of an appropriate climate change strategy, institutions are making these standards a prerequisite for all commercial real estate investments.
This investment model differs from private equity in that it creates perpetual equity and does not require traditional bank financing for its real estate debt. The equity is invested by the limited partners, and the debt is self-issued by the partnership.
Investors can become Limited Partners with a minimum investment of $250,000—a relatively low price tag for a product with benefits typically available only to institutions. These include 3x capital appreciation over the 8-year development phase and 20%-plus distributions for the life of the buildings. The fully transferable units can be sold at any time, a rare quality in a partnership world characterized by investor lock-in periods and lack of liquidity in the market.
For a confidential discussion on our perpetual income real estate opportunity, contact us...