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Executive Place th St Red Deer
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Investment Opportunity
● 12 story structure built in 2010 ● Class ‘A’ Office Building ● 103,879 sq ft of leasable area ● 97,972 sq ft of office space ● 5,907 sq ft of retail space ● 0.40 acres or 17,424 square feet of land ● 101 heated underground parking spots
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Premier Location Located in the heart of Red Deer’s downtown area on Ross Street and 49th Avenue. This prominent corner sees combined traffic counts of over 30,000 vehicles per day Strong Market Segment – Business friendly municipality well positioned between Edmonton and Calgary with strong demographics (age, income, and growth). Represents nearly 1/8th of all Class ‘A’ Office space in Red Deer Well Positioned – close proximity to City Hall, Provincial Building, Millennium Centre; multiple restaurants, retail shopping centers, banks and public transportation stops offers tenants a multitude of amenities within a close radius.
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Tenants - Stantec (49,988 sq ft )
● Outstanding Tenant Roster: - Stantec (49,988 sq ft ) - NOVA Chemicals Corp (35,593 sq ft ) - RBC Dominion Securities (10,333 sq ft) - BDC (1,934 sq ft) ● Long-Term Tenants - Long-term leases with contractual upside to be realized going forward.
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Professional Engineering Consulting Company
Specializing in sustainable solutions This location services central and northern Alberta, including Fort McMurray Previously a Red Deer presence – represents a consolidation of offices Occupies floors 7 through12
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Founded in 1954, a world leader in the production of plastics
Headquarters in Calgary and employs over 2,500 world wide Seven main manufacturing plants, including one in Joffre, Alberta, one of the largest of its kind in the world Occupies Floors 4 through 6
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Canada’s leading full service investment and wealth management firm
Red Deer office is an expansion to tap what they believe is a large growing sector Leases 10,333 square feet on the third floor
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Business Development Bank of Canada
A banking company who caters exclusively to entrepreneurs, specifically small and medium size ventures Specializer in Venture Capital, Consulting services, Financing and subordinate financing Leases 1,934 square feet on the 2nd floor
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Videos http://kiboodle.ca/reddeer/videos/featured- videos/player/21/14
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1,488 SQ FT SECOND FLOOR OFFICE
VACANCIES: 1,488 SQ FT SECOND FLOOR OFFICE 4,543 SQ FT MAIN FLOOR RETAIL
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PURCHASE PRICE = $40 MILLION
PURCHASE SUMMARY PURCHASE PRICE = $40 MILLION STANTEC TENANT ALLOWANCE = $2.58 MILLION (APPROX.)
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STANTEC TENANT ALLOWANCE
GROSS LOAN AMOUNT $2,580,090.56 DISCOUNTED AT 6.50% NOVEMBER 1, 2014 = $2,383,857.56 JULY 1, 2014 = $2,474,694.42
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PURCHASE CONDITIONS DUE DILIGENCE CONDITION – MAY 20, 2014 FINANCING CONDITION – JUNE 3, 2014 CLOSING JUNE 30, 2014 STANTEC ALLOWANCE CAN CLOSE UP TO NOVEMBER 1, 2014 (TRYING TO CLOSE JUNE 30, 2014).
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VENDOR HEADLEASE FOR VACANT SPACE
2 YEARS 6,031 SQUARE FEET - 1,488 SECOND FLOOR OFFICE - 4,543 MAIN FLOOR RETAIL 6 PARKING STALLS FULL RENT + COMMISSIONS + TENANT ALLOWANCE IN TRUST COORDINATION OF LEASING EFFORTS
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HOW ARE WE GOING TO PAY FOR THIS?
$26 MILLION NEW FIRST MORTGAGE (65% OF $40 MILLION) $14 MILLION EQUITY TAKE OUT FOR CLOSING ON COCHRANE TOWN SQUARE, GRAND CENTRAL PLACE AND GRAND PROFESSIONAL CENTRE $3.0 MILLION (STANTEC ALLOWANCE + SOFT COSTS) – NEW EQUITY RAISE FOR CLOSING A FURTHER $7.5 MILLION WILL BE RAISED WITHIN 12 MONTHS THROUGH THE SALE OF SHARES TO REDUCE OUR DEBT
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EQUITY RAISE $10.5 MILLION MINIMUM $3 MILLION NEEDED FOR CLOSING JUNE 30TH $40.00/SHARE (POST STOCK SPLIT) MINIMUM $250,000 FOR NEW INVESTORS MINIMUM $100,000 (INCLUDING CURRENT INVESTMENT) FOR EXISTING SHAREHOLDERS
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EQUITY RAISE INVESTOR INFORMATION PACKAGES BEING FINALIZED INFORMATION SESSIONS INVESTORS GET A PIECE OF EVERYTHING (NOT JUST RED DEER)
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5 YEAR FINANCIAL OUTLOOK
Gains over Status Quo Additional Cash/Share $1.03 $2.66 $3.62 $3.32 $3.33 Additional Cash Flows $130K $378K $506K $463K $465K Projected Cash Flow/Share $16.60 $19.58 $21.79 $22.30 $22.85 Projected Share Values $ $ $ $ $453.99 Note that Cash Flow Representation is from Lease revenues only Note that share values do not include current cash reserves and will initially decrease as we issue additional shares. Projected cash flows do not reflect projected dividends
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NEW MILESTONE GCPI NOW IN EXCESS OF $107 MILLION IN ASSETS
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