TAS LP3

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Offering Description

TAS LogoTAS is a community-focused mixed-use real estate developer driven by the belief that cities are built by everyone.

TAS is a leading full-service real estate company located in Toronto, Canada whose unique approach, based on multi-purpose capital, drives positive social impact while delivering enhanced financial returns to investors. TAS is a Certified B Corporation and founding member of the SVX Platform. 

To date, TAS has entitled, developed and completed real estate projects totaling over $900 million in asset value, and has delivered a gross equity multiple of 3.2x to investors.* TAS’s current development pipeline is 4.2 million square feet located across 11 projects within the GTHA, with approximately 25% commercial and 75% residential developments. These projects are in various stages of the development cycle and have an estimated value at completion of nearly $3.3 billion. 

*Includes completed developments, partnership properties and stabilized value of assets under development.

Investment Highlights

TAS LP 3 (“LP3”) is a closed-end diversified real estate fund with a 10-year life that offers an opportunity to invest in the thriving GTHA market while achieving a broad range of impact objectives. The fund will build on the company’s proven track-record of exceptional returns, on a risk adjusted basis, supplying the capital required to expand its existing pipeline of projects and generate broad social impacts through a multi-purpose investment platform.

Investment Offering:
Mandate: Acquire urban residential and mixed-use development sites located in the GTHA.
Fund Equity: C$100 million (minimum investment $5M).
Target Portfolio: 4-6 Projects
Target Net LP Return: 16-18%

Investment Targets:

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Structure:                                                                                                   

  • Business: Infill ground-up real estate development focused on urban mixed-use income properties
  • Region: Primarily Greater Toronto and Hamilton Area, Ontario, Canada
  • Type: Closed-End Fund, Ontario Limited Partnership
  • Size of Offering: $100 million, subject to increase to $150 million with prior notice to the Limited Partners
  • Minimum Investment: The minimum commitment of a Limited Partner is $5 million, individual commitments of lesser amounts may be accepted at the discretion of the General Partner (GP)
  • Commitments by GP: $15 million with option to increase investment to 20% of the aggregate commitments
  • Term: 10 years from Initial Closing (with one x one-year extension at GP option and one additional year with prior consent of the LP Advisory Board)
  • Commitment Period: 36 months from anniversary of the Limited Partnership’s Initial Closing with one six-month extension at GP option
  • Closings: Initial Closing complete in January 2020 at approximately $65M. Final close expected to occur during Q4 of 2020.
  • GP Carried Interest: Details provided in Private Placement Memorandum and Limited Partnership Agreement
  • Co-Investment (GP Fund): Details provided in Private Placement Memorandum and Limited Partnership Agreement
  • GP Asset Management Distribution: Details provided in Private Placement Memorandum and Limited Partnership Agreement
  • Other Affiliate Fees: Details provided in Private Placement Memorandum and Limited Partnership Agreement

Use of Proceeds:
LP3 has been established to optimize, secure and develop real estate assets in a timely and efficient manner. The Limited Partnership strategy is based on sourcing and screening off-market investment opportunities with a target portfolio of approximately six projects, requiring average equity commitments of $15 million to $25 million.

At the heart of TAS's success is the organization’s vertically integrated operational structure and capabilities, which are leveraged to proactively create value through each step of the asset lifecycle. The organization unlocks potential through:

1. Neighborhood Identification: explore subtle underlying social drivers to forecast trends, identify emerging neighborhoods, invest ahead of the market demand curve to achieve property value increases

2. Site Sourcing: utilize proprietary sources and deep existing broker network to procure off-market properties at competitive rates, then optimize for revenue and population density

3. Innovative Design and Programming: engage and innovate with a diverse and unique set of programming partners, including local stakeholders, to create community-assets that address current realities and dynamically evolve to meet future needs and opportunities

4. Entitlement and Development: leverage significant stakeholder relationship management expertise to efficiently navigate complex municipal entitlement processes and achieve improved real estate use and value

5. Strategic Partnerships: employ joint venture project structures to mitigate project risks, realize early stage returns and retain upside participation through to completion

TAS has identified the opportunity to build a high-quality urban mixed-use portfolio by strategically acquiring development sites of varying sizes and complexities. Multi-phased development projects are typically longer dated in nature and target a higher return profile; these are complemented by mid-rise development projects that provide near-term profit and liquidity opportunities with lower overall risk. The targeted mix offers a balanced risk approach to portfolio formation in the current real estate market.  

Current Investors:
TAS has currently raised almost $70 million for this offering and is looking forward to bringing more investors into this opportunity.

Target Close:
Initial Closing complete in January 2020 at approximately $65M. Final Close expected to occur in January 2021. 

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.

Should investors want more information, including the financial information or PPM and LP agreement, they should email Khan Tran at khan@tasdesignbuild.com and Avery Shopsowitz at avery@tasdesignbuild.com

Impact

B Corporation Score: 107- Certified B Corporation

Impact Creation: 
TAS believes the way we are living today must change in order to create a more inclusive, livable future – and that cities are built by everyone. The firm’s full-service real estate platform is leveraged to challenge the status quo, invest strategically in unique places positioned to drive impact, design intentionally so more people benefit and engage thoughtfully to unearth better solutions for how we live together. TAS is determined to maximize stakeholder value at every stage of its process and across its portfolio to deliver projects that serve as community assets and drive impacts that extend beyond the traditional real estate footprint, today and tomorrow.

To ensure the impacts it generates are relevant and resilient, TAS uses the Four Pillars of Sustainability™ to plan its mixed-use development projects:

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TAS’s impact is demonstrated through its third-party B-Corp accreditation. The firm is currently enhancing a pre-existing impact framework and will be issuing a corresponding report in 2021. In the interim, its community-oriented sensibility is best described through concrete examples. TAS is currently developing a number of projects with varying levels of affordability to address one of the most pressing urban issues of our times. The firm’s commitment to addressing access to housing has led it to develop strong partnerships at all levels of government through funding and project partnerships. Its lens on affordability extends beyond housing alone, and numerous commercial initiatives will nurture ecosystems for creatives, artists and entrepreneurs. Lastly, a commitment to food security has seen TAS seed a series of initiatives including the development of a significant urban farming platform at their Tecumseth project. 

Risk

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 TAS LP3 involves a significant number of risks that should be considered before making any investments. For further details on the risks in the private markets, refer to the SVX Regulations and Risks section.

Real Estate Investments Risk
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. High project financing costs and macroeconomic dynamics may impact the ability of purchasers to finance completed units. 

No Assurance of Profit or Distributions Risk
Returns for investors are dependent solely on TAS’s ability to identify, select, obtain, manage and exit appropriate investments. An investment in the Limited Partnership is a long-term commitment, and there is no assurance of any distributions to the Limited Partners. It is important to note that historical returns from preceding funds or investments are not indicative of future success. 

Illiquidity of Interests Risk
Limited Partnership Interests are highly illiquid instruments. 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. TAS LP3 may also make distributions to Limited Partners which may include securities for which there is no readily available public market. 

Focused Investment Strategy Risk
The Limited Partnership will only make four to six investments in early-stage real estate development projects originating in the GTHA. This strategy limits the benefits of risk reduction through diversification. In addition, there can be no assurance that there will be a sufficient number of suitable investment opportunities.  

Carried Interest Risk 
TAS may be incentivized to make riskier investments given their entitlement to carried interest.  

Economic and Market Risk 
Limited Partnership portfolio investments may be particularly sensitive to general downward swings in the overall economy or in the real estate industry. A major recession or adverse development in the securities or real estate markets may impact the Limited Partnership’s investments. At this time, TAS has not experienced a significant change in operations due to COVID-19. 

Lack of Regulatory Oversight 
The Limited Partnership is not subject to any regulatory oversight in Canada or other jurisdictions. 

*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, Private Placement Memorandum, and associated securities agreements before considering or making any investment.

Management Team

Mazyar  Mortazavi

Mazyar Mortazavi

President and CEO

Mazyar has 20 years of experience in the area of development, design and construction.  He holds a Bachelor’s degree in Environmental Studies and a Master’s degree in Architecture from the University of Waterloo.  Mazyar has been actively involved with TAS since 2000 and leads TAS’s overall vision and strategic direction. Mazyar’s commitment to design and sustainability has garnered acclaim, and his vision has defined TAS’s corporate commitment to building resilient cities. He is widely recognized as a leading city-builder who leverages social impact to enhance and drive higher financial returns in the real estate industry.  Mazyar chairs The Bentway board, sits on the Board of Waterfront Toronto and The Art Gallery of Ontario and is a member of the Young Presidents Organization.  

 

Khan Tran

Khan Tran

EVP Investments

Khan has over a decade of experience in finance, real estate acquisition, development and asset management. His responsibilities include overseeing the acquisitions, joint ventures and capital strategy for TAS.  He previously held increasingly senior roles at Canada Pension Plan Investment Board, a leading global real estate institutional investor and asset manager. Khan is a Chartered Professional Account, Chartered Financial Analyst and holds an Honours Bachelor Business Administration Degree from Wilfrid Laurier University.   

$69,300,000.00

Raised Of $100,000,000.00 Goal

Days Remaining 92
Hours 05
Mins 36
$69,300,000.00
 
Limited Partnerships (LP) Offer. Structure
16% Valuation
10 Years Term

*Capital raised figures include amounts raised both on and off platform. Amounts raised off platform or committed have not been independently verified by SVX.