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.
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%
- 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.
TAS has currently raised almost $70 million for this offering and is looking forward to bringing more investors into this opportunity.
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 firstname.lastname@example.org and Avery Shopsowitz at email@example.com