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Trez Capital raises first C$20m for new private real estate fund

Trez Capital has launched a long-term hold fund that will provide Canadian investors access to joint-venture real estate investments with developers across Canada and the US.

Trez Capital has launched a long-term hold fund that will provide Canadian investors access to joint-venture real estate investments with developers across Canada and the US. Trez Capital Private Real Estate Fund raised initial capital of just over C$20 million. It is the Toronto-based firm’s sixth offering in the alternative space.

PRESS RELEASE

Trez Capital introduces innovative private real estate fund

TORONTO, Sept. 14, 2021 /CNW/ – The Trez Capital Private Real Estate Fund (“TPREF”) is a long-term hold fund that will provide qualified Canadian investors access to joint-venture real estate investments with market-leading developers across Canada and the United States.

The fund launched successfully on August 31, 2021 with an initial capital raise of just over $20,000,000. This launch also marks the first time that the Canadian investing public is able to participate in Trez Capital’s equity investment platform. Historically, the managed equity investment platform has been offered on an exclusive basis to institutions and accredited investors. Trez Capital has now opened its equity investment management services to the investing public, offering Canadian investors the chance to participate in compelling real estate projects with world-class development partners, which includes but not limited to Hines and Thompson Realty Capital.

TPREF* offers Trez Capital investors a new structure that combines attractive features including:

a minimum investment of $25,000 CAD;
monthly purchases;
subsequent subscriptions of $5,000 CAD;
a structured Trust investment format; and,
a tax-efficient stream of income distributions that maximizes the capital appreciation and the long-term value of the Trust’s units by building and holding high-quality, well-located income-producing properties.

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*Disclaimer – is best suited for clients with a long-term horizon –typically five years or more, given the nature of the asset class and fund terms. Please consult the offering memorandum.

Distributions of Distributable Cash, if any, at each quarter end following the initial 24-month non-distribution stage.

With access to private real estate projects at the development stage through TPREF’s Build-to-Hold investment strategy, the Manager anticipates that investors will share in significant capital appreciation during the initial years of TPREF, and a steady, growing stream of cash flow as the properties stabilize.

“TPREF looks to give investors what they have been looking for in the real estate investment space,” said Morley Greene, Chairman and CEO, Trez Capital. “It is a unique offering that allows investors to increase their exposure to ground-up development and long-term asset management. This means direct ownership in income-producing properties, which is normally unavailable without substantially higher minimums investments.”

Given the price premium payable on the acquisition of stabilized income property, through this platform, Trez Capital looks for opportunities where the all-in development cost to build or improve a portfolio property is notably less than the market replacement cost of a similar, albeit stabilized, acquisition. The goal of this long-term strategy is to create a portfolio of modern buildings that outperform over the long term. This will be achieved by leveraging Trez Capital’s established platform that sources and executes strategic joint venture real estate investment and development opportunities.

“Overall, the benefits to investors and developers are clear,” said John D. Hutchinson, President of Trez Capital, Central & Southwestern U.S. “It is difficult to invest in development projects without taking concentrated risk. Our due diligence ensures secure investments and returns. Plus, this fund allows investors to participate in a diversified pool of real estate developments, with certainty that each has been underwritten to an institutional standard. For developers, we offer flexible and consistent capital. Most of our business is with repeat partners, who value the flexibility and consistency in execution that Trez Capital provides.”

This is Trez Capital’s sixth fund offering in the alternative space. In 2012, Trez Capital launched its first closed-ended Opportunity Fund, which was the company’s first major foray into the equity investment business. In 2019, Trez Capital successfully raised and placed Opportunity Fund V. Each of the five Opportunity Funds are tracking in excess of a 15% net annual rate of return (ROR) to investors. The Opportunity Funds are closely held, available only to accredited investors.

The Trez Capital Private Real Estate Fund (TPREF) is now available for sale to Canadian investors.

About Trez Capital

Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds and like investment assets and provides property developers and owners with quick approvals on flexible short- to mid-term financing.

With offices in Vancouver, Toronto, Montreal, Dallas, Palm Beach County, Atlanta, Los Angeles and New York, Trez Corporate Group has over $3.9* billion CAD in assets under management and has funded over 1,500 transactions totaling more than $13 billion CAD since inception. For more information, visit www.trezcapital.com. (*Trez Corporate Group AUM includes assets held by all Trez related entities as well as $2.7 B Manager AUM (Trez Capital Fund Management Limited Partnership)).