One Planet Living Fund

Offering Description

logo.jpgThe One Planet Living Fund is a real estate fund established to profitably create places where people can live happy, healthy lives within the Planet’s capacity. The One Planet Living Fund is committed to ‘shifting the real estate paradigm’, by enabling developers to integrate sustainability into their activities, connecting developers with impact-oriented execution partners, delivering social and environmental outcomes, and scaling this impact by replicating the model across geographies. The OPL Fund is managed by Windmill Development Group Ltd. and Epic Investment Services. 

Windmill Development Group (Windmill) is a company focused on creating one planet living community through eco-social logo.jpginnovations that bring into commercial application building practices that deliver low carbon, ecologically conscious, socially progressive real estate. Windmill Developments has a track record of delivering on $2B+ worth of some of North America's most sustainable developments. Windmill has achieved an unprecedented number of LEED Platinum ratings on  on its mixed-use developments and has been responsible for achieving the first two One Planet Living endorsed communities in Canada (Zibi, Ottawa and Baker Street, Guelph). Some of Windmill’s precedent projects include Dockside Green(Victoria), 77 Bloor Retrofit (Toronto), Aqua+Vento (Calgary), and the Plant (Toronto). 

Epic Investments Logo Epic Investment Services (EPIC) is a fully integrated real estate platform with specialized services in asset management, investment management, property management and leasing development, reporting and sustainability, across all property classes. Founded in 2003, EPIC presently has over $17.5 billion in assets under active management and 30 million square feet of space in office, retail, industrial and multi-family properties. With operations across North America, 150+ employees, and a proven track record, EPIC acts as a fiduciary on behalf of institutions, wealth managers and ultra high net worth individuals, to maximize operational and financial performance of their real estate holdings. The integration of EPIC’s corporate services platform, regional oversight and network of best-in-category partnerships allows our team to effectively execute on specific risk-return profiles and value-add strategies for each asset under management, in accordance with our clients’ long- or short-term portfolio goals.

Investment Highlights

The One Planet Living Fund (OPL Fund) is a Canadian Limited Partnership vehicle established to control and develop 6-10 pre-existing seed mixed-used development and urban renewal sites that have been secured in primarily the GTA and Ottawa markets that meet the impact measurement standards of the One Planet Living framework. 

Investment Offering:
Mandate:
Acquire multi residential and mixed-use development sites located primarily in the GTA and Ottawa markets,  in collaboration with key community partners, whose development can deliver significant social benefit to the surrounding community as part of the development program.

Type: Limited Partnership Units
Impact Rating: One Planet Living Framework 
Fund Equity: $75MM 
Target Portfolio: 6-10 development/renewal projects 
Target Net LP Return: 18% net of all fees
Hurdle rate: 8% 
Minimum Investment: $500,000, individual commitments of lesser amounts may be accepted 
Term: 5 years 

Investment Targets:
- Infill multi-residential - 50%
- Urban commercial/retail - 25%
- Urban renewal/asset repositioning opportunities - 25%

Use of Proceeds:
The fund will be used to secure and develop mixed-use assets that will have a minimum development value of $25 million and maximum development value of $400 million. On larger deals, OPL Fund will seek to co-invest with other established funds/partners. The following projects have been proposed:

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The fund aims to have the following characteristics in its projects: 
- Partner with impact oriented urban landowners (municipality, non-profit, church, CSR focused owner etc.) where strong market development fundamentals exist, and land/asset purchase proceeds create greater impact by improving the strength and mission of the impact-oriented landowner. 
- Solicit projects that include affordable housing solutions.  
- Provide deep building retrofits. 
- Develop community and large-scale mixed-use developments that are targeting carbon neutral and social progressive outcomes
- Procure deals on an off-market basis where the land/asset owners are more focused on ensuring the “proper legacy” of the property, rather than solely obtaining the highest market price. 

Target Close:
Initial closing complete in March 2020 (Q1 2021) at $50M. Final Close expected to occur in Q4 2021.

Fund Roles:
Windmill is responsible for OPL program implementation at both a fund and project level, deal sourcing and negotiation, acquisition underwriting and due diligence, overseeing development implementation, and management and construction activities for opportunities the fund has invested in.  

EPIC is responsible for all aspects of financial administration services including reporting, financing arrangements, portfolio and asset management, property management, leasing, and property dispositions.  

Please note that this is not a complete investment summary. Interested parties should read all associated documentation including the Limited Partnership Agreement and associated securities agreements before considering or making any investment.

Impact

The One Planet Living Framework is a third party globally recognized sustainability framework centered around ten guiding principles that are aligned with the UN Sustainable Development Goals. In comparison to other certifications such as LEED, the OPL framework is more flexible and inclusive of broader social and community benefit metrics, aiming to facilitate collaboration and engagement across the community, including local businesses, neighborhood groups, and the government. 

One Planet Living Framework PrinciplesImpact Creation:
The One Planet Living Fund will aim to achieve the following metrics in accordance with the OPL framework:

- Integrated community engagement program 
- Sustainable water: Minimum 50% water/stormwater recycling 
- Sustainable materials: local, zero Volatile Organic Compounds (VOCs), cradle to cradle materials
- Zero Waste: 10 year plan for zero waste to landfill 
- Land Use + Wildlife: Increase biodiversity form baseline 
- Local + Sustainable Foods: Inclusive urban agriculture 
- Sustainable Transport: Minimum 80% reduction in transport GHG to baseline minimum 75% or higher walk score 
- Zero Carbon: 10 year carbon neutral plan 
- Equity + Local Economy: Minimum 70% local businesses engaged, minimum 1x sharing economy initiative and 10% affordability for residences

Risks

All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. An investment in the OPL fund involves a significant number of risks that should be considered before making any investments. Our goal is to make you aware of those risks before making an investment.  The following risks have been identified for investors:  

COVID-19
When it comes to COVID-19, most experts are predicting substantial market uncertainty in 2021-2022. Limited Partnership portfolio investments may be particularly sensitive to general downward swings in the overall economy or in the real estate industry.

Risk of Real Estate Investments
Early-stage real estate investments carry a high degree of risk stemming from the potential need for substantial additional capital to support the completion of a project; macroeconomic dynamics that may impact the ability of purchasers to finance completed units; the high cost of project financing; and competition from similar projects in the region. 

Planning and Approvals
The OPL Fund projects need to obtain necessary approvals from city officials, community members and/or other government officials in a timely manner. Any delay in approvals from the multiple parties involved, may lead to construction getting delayed. 

Construction Financing
The OPL Fund requires significant financing for construction of its projects. Most projects are currently modelled with 150 bps of interest rate contingency. If the debt market falters and major lenders decrease their funding, OPL Fund projects will be subject to considerable risk. As a precautionary measure, construction of all projects will only commence once pre-sales have reached a minimum of 60%-70% units.

No Assurance of Profit or Distributions
Returns for the investors are dependent solely on the ability of the General Partner to identify, select, obtain, manage and exit appropriate investments. The process of sourcing opportunities, monitoring investments, and realizing positive returns for Limited Partners is difficult, and there are many external factors that have the potential to negatively impact the performance of the Fund. It is important to note the successful track record of the investment team or preceding funds are not indicative of future success.

Illiquidity of Interests
Given the nature of a closed-end fund, LP Interests are highly illiquid instruments that are solely controlled by the General Partner. There may be no readily available market for the Limited Partnership’s investments and most of the Limited Partnership’s investments will be difficult to value. The Limited Partnership may also, upon liquidation, make distributions to Limited Partners which may include securities for which there is no readily available public market.

*Note: The risks presented above are not an exhaustive list of the potential risks which may be incurred by taking part in this opportunity. Investors should read all associated documentation including the Limited Partnership Agreement, and associated securities agreements before considering or making any investment.

Management Team

Jonathan  Westeinde

Jonathan Westeinde

Founder & CEO, Windmill Developments

Jonathan is the founder, CEO and visionary behind Windmill and Ledcor Renew and is recognized as an experienced developer and leader in the green building movement, delivering $2B+ of impact projects. Jonathan has actively managed six different real estate funds that have invested in some of North America’s greenest communities. 

 

Craig  Coleman

Craig Coleman

Co-Chief Executive Officer, Epic Investment Services

Craig Coleman is the Co-CEO of EPIC and is responsible for the overall business strategy and growth through property and asset management for Epic’s new full-service North American platform. As former Chief Operating Officer of Epic, Craig managed the execution of Epic’s business strategy across Canada, overseeing $14.2 billion in assets, managing a portfolio of over 26 million square feet and leading a team of 100+ experienced real estate professionals. Prior to EPIC, Craig has held senior positions at Maestro Real Estate Advisors and CIBC Development Corporation

 

Laetitia Pacaud

Laetitia Pacaud

Chief Operating Officer & Chief Financial Officer, Epic Investment Services

Laetitia is Chief Operating Officer and Chief Financial Officer at Epic Investment Services. In her dual role, Laetitia is responsible for the execution of business strategy across North America as well as accounting, client reporting, income tax, insurance, human resources and IT. In her last role at MDC Group, she led growth initiatives across their North American platform, overseeing 12 million square feet of cross-border commercial real estate and spearheading MDC’s second U.S. Multi-Family Fund.

 

Mark  Holden

Mark Holden

Partner and Vice President, Windmill Development Group

Mark is a partner with Windmill Development Group and brings over 25 years of real estate experience in asset management, portfolio management, acquisitions and dispositions, lease negotiations, finance, and analysis. In Mark’s previous Senior Management role at Morguard Investments Limited, he advised numerous top Canadian pension funds on real estate strategy and structure where he was responsible for an 18 million square foot real estate portfolio. 

 

$45,000,000.00

Raised Of $75,000,000.00 Goal

Days Remaining 194
Hours 06
Mins 43
$45,000,000.00
 
Limited Partnerships (LP) Offer. Structure
18% Valuation
5 Years Term