The investment objective is to achieve capital growth through the investment in real estate development projects globally while using Canadian Segregated Funds as the Fund’s Hedge. The Real Estate projects will include, but are not limited to, restoration and development of bank owned residential, commercial, industrial and agricultural properties as well as land developments of the same.
The 365 Real Estate Development Fund Ltd. will set up a hedge with the Fund’s cash assets obtained through the sale of shares in what is known as a Canadian Segregated Fund. This is to achieve a stable rate of return on the hedge.
Since Canadian Segregated Funds are a Highly Rated investment in the eyes of traditional lending institutions, best rate ‘Loan Facilities’ using the hedge as collateral are created to borrow against. The Fund then invests the monies from the Loan Facility via secure loan/private equity arrangements on real estate and real estate projects for an additional rate of return outside the hedge. This all happens while maintaining a high asset value within the 365 Real Estate Development Fund’s portfolio.
As stated, Canadian Segregated Funds provide a hedge that is a highly rated investment vehicle that allows the ability of leveraging at best interest rates. This allows for investment in the Real Estate component of the Fund.
Excellent Real Estate opportunities are always available in stable countries throughout North America and Europe regardless of the world economy. Other Real Estate opportunities are also available in various emerging markets globally. The Fund will capitalize on these opportunities to achieve maximum growth and returns.
The methodology employed is under constant revision and refinement, and the Investment Manager has discretion and reserves the right to selectively use and change the methodology from time to time. This investment is considered a medium to long term investment strategy.