ReDev Canadian Mall Investments Simple - Stable - Secure

Redev Immediate Cashflow

    ReDev & Canadian Plaza Co-Ownership Investments

    Richard Crenian - CEO & President - explains "ReDev are a Canadian company owned by Canadians and have been in the real estate business in Canada since 1981".During this time, ReDev have successfully developed over 11,000 units and currently have 25 shopping malls under management.

    ReDev have the local knowledge required to succeed and have never lost a cent of client money – ever !!!,

    You can rest assured that your money is in stable , secure hands.

    80% of ReDev investors live in Canada and 66% are repeat investors.

    “The vast majority of ReDev investors live in the area in which ReDev properties are situated – this speaks volumes about the value and excellence of these locations.”

    What is a ReDev plaza investment ?

    An investment into a ReDev Plaza means you become a direct part-owner of an existing office & retail plaza in one of Canada's vibrant retail sectors.

    ReDev develop , maximise & increase the revenue potential of the shopping plazas.

    The investors rate of return is based upon the rental income generated from existing plaza tenants coupled with the plaza appreciation over time.

    Recession resistant

    ReDev plazas contain shops that serve the local community’s regular needs - for example medical, dental, food, beverage and banking outlets are typical of the type of tenants ReDev secure.

    These business types provide the communities with the items customers need on a regular basis - whatever the state of the economy.

    As a consequence therefore rental income is proven be low in volatility and aligned to strict and enforceable tenancy agreements - providing further assurances to investors.

    During the recession of 2008, ReDev malls occupancy rates fell only from 97% to 95%, enabling all investors in all malls to continue to receive their 5-7% income payments per year

    Redev Plaza'a are therefore - Simple - Stable - Secure

    Understanding ReDev - A Video Presentation

    My Image

    Please watch the movie presentation below to gain further insight into ReDev, the value of Canada as an investment destination and the current plaza offerings which provide for passive annual income of 7.1 and 7.3% dependent on the plaza chosen.

    Please allow some time for the video to load.

    Each slide is designed to view for 8 seconds - if you require more time to read simply use the 'pause' button.

    Features & benefits of a ReDev plaza co-ownership investment

    • Immediate income paid bi-annually(5 - 7%) and a capital gain realised upon sale or re-financing of the Mall
    • Low risk for peace of mind
    • 4 - 7 year exit strategy
    • No hassle - armchair investment
    • Triple-net leases - no additional out of pocket expenses - tenants pay for all maintenance,repairs,insurance etc out of their lease agreements
    • Historical average of 140% ROI (Return On Investment) when property is sold or refinaced after approx 5 years

    Redev Ellerslie Plaza

    Due diligence

    ReDev buy every shopping Mall before its offered to investors.

    All Plazas are profitable and fully, or near fully leased - average occupancy of all ReDev Plazas is 97%.

    You can be sure therefore that ReDev have carried out the most extensive due diligence possible which include :

    • Background checks on previous owners
    • Environmental engineering tests
    • Checks to ensure the correct ratio of established tenants and well-known brands such as government, banks,large retailers of everyday consumables
    • Local vehicular traffic count
    • Age and condition of building
    • Age, occupation and income of local population
    • Potential land and industrial development projects
    • Shadow anchor tenants

    Strategic long term planning

    Prior to formalizing a deal, ReDev will meet with their consultants, agents, and, when relevant, construction companies and financial representatives to map out the strategic and effective plan required to ensure the success of every project that will be managed.

    Third party specialist retention

    ReDev engage with third parties to effect the following :

    • Carry out due diligence on cash flow projections
    • Prepare market overviews, projections and outlooks
    • Conduct Phase I and Phase II environmental audits (if required)
    • Assemble physical property descriptions and reviews
    • Review major legal agreements
    • Property structural analysis

    ReDev strengths

    • Quality Management: An experienced management team ensures all properties are fully leased, well maintained and produce steady, reliable income that maximizes value.
    • Quality Tenants: ReDev ensures all properties include well-known and well-established anchor tenants.
    • Quality Locations: ReDev only invests in prime locations that offer the highest growth potential.
    • ReDev provides the highest level of security: Partners own the property and are legally registered on title. An insured chartered accounting firm, a third party, acts as trustee, deals with all tax forms, and distributes income directly to each investor.
    • ReDev does all the work: ReDev take care of all due diligence on the property and appoint property management, accountants, lawyers, and arrange financing. ReDev outlays its own capital first, and then invites partners.

    How a ReDev plaza operates

    An investment into a ReDev project is both simple and uncomplicated.

    ReDev owns the property prior to selling portions to investors.

    New investors become equity partners in the project they invest into by way of a share purchase from ReDev's own share holdings.

    ReDev always remain invested in the project themselves in order to benefit in the same way as new equity partners.

    The tenants of the projects pay their contractual lease payments to the property managers.

    The property managers in turn assume responsibility to pay both the mortgage payments of the property and the accountancy fees and expenses.

    TMX Group - owners of the Toronto Stock Exchange - distributes bi-annually the residual income streams from the tenants.

    At the end of the projected 5 - 7 year period and after the mortgage has been reduced the project is either refinanced or sold in order to realise the capital gain - this in turn is re-distributed to the equity partners.

    The tenants remain in situ continuing to fund their leases and the process is repeated whilst rent revisions continue and property values increase over the next projected 5 - 7 year cycle period.

    The ReDev Cash Flow Model

    Redev Cashflow Model Diagram

    How do I receive the ongoing cash flow from my ReDev investment ?

    Usually within two weeks of the end of the quarter the Trustee distributes the quarterly disbursement to the investors. Most of the investors have this done by direct deposit directly to their bank account.

    As an owner of the building will I be required to pay for any expenses that come up?

    No, with triple net leasing, improvements to buildings i.e., painting, cleaning, window washing insurance, property taxes etc are all paid for by the tenants.

    Two Edmonton plaza's are now available

    Redev Palisades Plaza
    Redev Inglewood Plaza

    We are happy to provide information packs on both Palisades & Inglewood Plaza's.

    If you would like to receive these packs please use the button below.

    Both the Palisades & Inglewood Plaza'a in Edmonton are well established in the local communities.

    Both Plaza's offer a 100% occupancy with stable sets of tenants with long term lease contracts.

    The Palisades average rate of return equates to 7.1% whilst Inglewood offers 7.3% per annum

    Watch the presentation video above to learn and understand the compelling rationale of why investments into ReDev shopping plaza's offer Simple - Stable - Secure returns for those investors seeking a less volatile passive armchair income.

    FAQ's - frequently asked questions

    Smart buyers always ask intelligent questions. Here are a few of the most popular ones.

    How secure is my ReDev investment ?

    Your investment is very secure. You become one of the actual owners of the Plaza. The debt to equity ratio is usually around 50% in most of ReDev investments. All money is handled by trustees and lawyers on money invested and accountants on returns paid to investors.

    Can I sell my ownership holding ?

    YES. Unlike many other investments ReDev can put your stake up for auction and won't charge you a penalty for early encashment - or you can sell it yourself, just pay the Canadian lawyers a $500 fee to amend ownership.

    Usually only death or divorce bring existing positions to market.

    Please note however that part-ownership in a commercial Realestate project is not similar to the sale of an equity holding in a mutual fund or unit trust.

    What are the risks with this investment ?

    The primary risk is that the economy would weaken to such an extent that businesses would start to close and move out of the plaza.

    However, as ReDev Plaza's are considered true 'meat and potatoes' types with store tenants that tend to weather 'storms' better than most the risk is considered minimal.

    Your risk is limited to your investment.

    Redev Ranchland Property

    Why is a ReDev investment good at this time ?

    The combination of safety and high after tax paid returns makes this investment one of the best on the market at this time. It will stand strong in comparison with any other investment on the market today.

    Have investors ever lost monies with ReDev ?

    No - ReDev are very proud to state that in over 30+ years of business no investor has ever lost money

    What fees do I have to pay ?

    There are no fees to pay as any fees are deducted and paid from cash flow.

    The only fee you need to pay upfront is the CAD $500 legal fee. 2% is deducted from the total rental income as an asset management fee and 2.5% to accountants as a fee for cash flow distribution, filing tax forms etc.

    This nets 95.5% for the investors, much more than owning residential.

    ReDev also earns a sales commission of 6% for selling the shopping mall or releasing equity back to owners through refinancing. A fee of CAD 50 cent per square foot for increasing rents upon renewal for existing tenants and CAD 1 per square foot for rent increase negotiated on new leases.

    Redev Jasper Gate Plaza

    Is it not better to keep money banked and wait for property prices to fall ?

    NO - Do not confuse residential with retail or commercial real estate. You start earning rental income from the first day you invest with ReDev. Waiting has never produced any net gains.

    What is a 'non-recourse mortgage ?

    This type of mortgage protects you as an investor.

    In the unlikely case that the rental yield from any of ReDev Shopping Plaza is not enough to cover the mortgage payment, you are not liable for any shortfall. In more than 3 decades of business, this has never happened with any ReDev investment, ReDev use this type of mortgage to protect your investment.

    What is a 'triple-net' lease ?

    All Redevs tenants sign a triple-net lease. This means they are responsible for repairs and maintenance of the premises and all management fees. This results in a much more profitable investment than residential rental that does not have triple-net leases. This helps make owning retail commercial properties hassle free and more profitable.

    Redev Palisades Plaza

    What is the worst case scenario ?

    it is very, very unlikely that you would ever lose money investing with ReDev. 50% of the existing tenants in any shopping mall ReDev own would need to go bankrupt before the mortgage payment could not be met.

    This in itself is highly unlikely.

    As all ReDev mortgages are 50%, even in this unlikely and worst case scenario, ReDev can still cover the mortgage.

    ReDev also keep a mortgage reserve fund to cover any shortfall that might occur. Add to this the fact that all ReDev mortgages are non-recourse mortgages, which means you are not liable for any shortfall in the mortgage payment and you can see that your investment is very safe.

    The worst possible case scenario is that ReDev would simply hold on to the shopping mall for a longer period of time and keep generating income from it until such time as market conditions are favourable for a sale.

    I'm ready to go ahead - what are the next steps ?

    it's as easy as 1 - 2 - 3 !

    Simply click the ReDev Information Request button below - fill in your details and we will send you an information pack and reservation form.

    You will need to provide a proof of address - a utilities bill will do, plus a photocopy of some form of photo ID such as your passport or ID card.

    ReDev will then prepare the agreement of purchase and sale, plus other closing documents.

    You will need to transfer payment on or before the day of signing the closing documents.

    Please note that you will need to pay the CAD$ 500 legal fee at the same time as you make the payment.

    Updates & announcements regarding ReDev are published in our blog posts - be sure to check on all the news and developments.