Similar to the Commercial Real Estate Fund, The Multi-Residential Real Estate Fund will focus on core real estate the major markets in Eastern Canada (Toronto, Ottawa, Montreal, Quebec City and Halifax)with a targeted fund size of between $500 million to $1 billion (CAD) of Equity, depending on capital availability.
RECan’s goal is to deploy capital in 2021 and 2022, while the target for 2021 is at least $100 million (CAD).
For diversification purposes, the portfolio, when completed, should contain a minimum of 10 multi-residential properties in at least three distinct geographic markets, with a targeted minimum asset value of $20 million (CAD).
To increase the scale and enhance the return the Fund will finance the portfolio with non-recourse mortgages (recourse to property only) with an overall leverage target of 50% LTV (loan to value).
The cash distribution will be provided annually to the investors. A cash reserve and/or a credit facility will be established to help fund any required capital projects.
The Fund will not contain any development risk, as the earliest investment will be at substantial completion and lease-up, with preference for a minimum of one to three years of operating history.