New IGW Diversified Redevelopment Fund engineered for growth

Stock and bond market investors have suffered through some wild ups and downs this fall -- just as they've had to many times before and will many times again.

That's something LEAGUE's Member-Partners don't have to worry about.

When their money goes into a LEAGUE investment, they know they can expect consistent, positive, tax-efficient returns, with minimal volatility and carefully considered risk management.

A great example is LEAGUE's new IGW Diversified Redevelopment Fund.

Real diversification

Diversification is widely accepted as an important investing strategy to reduce risk. In this case, the fund provides an exceptional opportunity to invest in a diverse array of redevelopment projects. This includes retail and industrial properties, as well as office and residential buildings, with these assets located in cities large and small.

Over the next 12-18 months, LEAGUE expects to invest in four to six such properties, representing a total of $25M. Member-Partners participating in the fund will begin earning a return of 6.6%¹ the month they invest. The minimum initial investment for "accredited investors" and investors purchasing Units pursuant to the "offering memorandum exemption" is $1,000.²

The objective of the fund's property portfolio is to create value "the LEAGUE way" -- which is not by simply tracking the broad real estate market. It is through the expertise and hard work of talented people who know how to skillfully execute redevelopment and refurbishment projects and actively manage properties.

The Fund's first two properties

Two properties have already been selected to launch the fund -- The Plaza Hotel in Victoria and 50/52 Arrow Road in Toronto.

The Plaza Hotel sits in the heart of downtown Victoria at the intersection of Government and Pandora streets, across from the Mountain Equipment Co-op, Chinatown and Centennial Plaza.

The hotel will be carefully restored to its historical past, and a new structure built and attached to it.

The end result will be almost 9,000 square-feet of new retail space and underground parking. Plus, there will be four work/live units for professionals, 30 apartments of affordable housing, and some 70 condominiums. In addition, the present driveway will be converted into an outdoor café with special features that will include a water-pond and attractive landscaping. In short, it will become a landmark property in central Victoria.

Design work is currently being reviewed with the city's planning department, and a rezoning application will be submitted before the end of November. Construction work is slated to begin early in the New Year, with completion expected by January of 2014.

The 50/52 Arrow Road property in Toronto is currently vacant. It consists of a 56,409-square-foot industrial building where furniture used to be manufactured in the rear and sold in a showroom at the front.

Though it's sitting empty at the moment, the building has exceptional potential. It's located in a mature industrial zone that has been greatly improved recently after Arrow Road was widened to four lanes, and a new sidewalk and related infrastructure improvements made. There is excellent road access to the property and it is located just a block from a major highway.

The plan is to convert the building into multiple units, each consisting of 4,500-13,000 square feet of leasable space. After construction work is done, marketing efforts will stress how the transformed property will be ideal for a home improvement centre or retail showroom, with excellent storage and manufacturing configurations available.

The project is already moving forward as preliminary cost estimates have recently been obtained.

A thoughtful investment strategy

A good property does not automatically mean a good investment. The Arrow Road and the Plaza Hotel properties were both carefully selected based on a thoughtful strategy. It involved the combination of a frugal purchase discipline, a seasoned redevelopment and refurbishment process, and a predetermined exit strategy.

For more information about this investment opportunity, please call a LEAGUE Member Services Manager, who will be happy to assist you.