Stage I

Acquisition Phase

 

■ Acquire land and secure primary tenants

 

■ Acquire underperforming asset with potential for re-development

 

Year 1

Stage II

Year 1-3

Underperforming Plazas

 

■ Reposition (market rents)

 

■ Re-tenant

 

■ Renovate

 

Stage III

Stabilized Income Phase

 

■ Realize value for investors by disposing of asset

~or~

■ Manage asset to provide stable income distributions

 

■ Refinance at 5-year anniversary to unlock equity

Year 3+

 

Sovereign Asset Management offers prime commercial real estate opportunities with national tenants providing excellent cash distributions and superior investment yields to our equity partners. We focus on the development of prime retail sites across Canada, which offer strong cash flow and long term capital appreciation.

 

Highlights of a typical investment are summarized below:

 

    ■ Ownership structure (newly incorporated holding company)

        • 50% equity partner

        • 50% Sovereign Asset Management (managing partner)

    ■ Direct ownership in bricks and mortar (not units)

    ■ Open to qualified investors with a minimum investment of $250,000

    ■ All equity returned to investor within a 5-10 year time frame

    ■ Stabilized cash yield of 6-10%

    ■ Total return on investment of 12-20% (leveraged)

    ■ Stable cash flow with quarterly dividends

    ■ Asset fully managed by Sovereign Asset Management

    ■ Prime retail sites, with AAA national tenants

    ■ Lease terms are typically 10 years or longer

Investment Summary

New Greenfield Developments

 

■ Site plan approval and development permits

 

■ Leasing of non-anchored space

 

■ Construction