12 January Location, location, location
Today’s turbulent global economy has left many investors unsure where to turn. Most residential real estate market has flat-lined, while many stock exchanges are experiencing their worst performance in years, bond yields and bank interest at record lows. However, some parts of the world continue to see their economies boom. Alberta, the oil-rich western Canadian province, and its neighbour Saskatchewan combined with the Canadian Dollar are safe havens for investors.
The demographics of Alberta and Saskatchewan are the envy of the world. The area has affordable housing and a rising population alongside a dropping unemployment rates. Retail sales are growing faster than the area’s population, inflation is low and economists project the region will add 600,000 new jobs in the next decade to a population of 4 million. Where else in the developed world are things better than this? No where!
A low-risk, relatively high-reward investment opportunity takes advantage of the booming Western Canadian economy and its knock-on effects in a commercial real estate sector that rivals anything in the developed world.
Redev Properties is not about speculating. It is about benefiting from the stability of existing, well-located prime commercial real estate in rapidly growing areas. The model captures positive trends in both the Canadian economy and the stability of commercial real estate, typically offering five-year fixed rate mortgages and five- to 10 year escalating leases with established names.
The global recession has had little impact on Western Canada , which is in the midst of a resources boom thanks to its rich deposits of oil, gas, agricultural land, potash, diamonds and uranium. Conventional oil and gas reserves cover half of Alberta , and technological innovations in the past decade are now opening up the rich oil sands deposits and well as the Bakken shale oil in Saskatchewan . The world’s largest energy companies, including Total SA,Sinopec and CNNOC have made massive investments in the area, with the goal of helping Alberta double its oil production by 2018.
Investors living in Asia may wonder how they can access this strong pocket of growth. Enter Redev Properties (www.redevproperties.com), which offers a low-risk, high-reward investment opportunity.
With a track record back to 1981, REDEV Properties offers investors the chance to become a part-owner in existing prime commercial real estate in growing Canadian cities. Redev helps to maximize the revenue potential of the shopping plaza in various ways. Investment horizons are four to seven years, when each property is usually sold or refinanced, distributing substantial profits to its investors.
In its 32 years of operation, the Redev founders have developed more than 11,000 residential units and helped more than 5,000 investors become part-owners in 30 plazas in Canada since 2001. Two-thirds of its investors are Canadian residents, many of whom live near the plazas, which speaks highly for their location and value. The model offers investors immediate and continuous cash flow and significant capital gains. Investors pay relatively low tax when sold and benefit from Canada’s strict commercial law.
Canada’s resource boom has spurred growth in other sectors of the economy, and retail space is in short supply. Canada has about half of the retail space per capita than the US , and retail demand continues to soar in Canada . This is especially true in Alberta and Saskatchewan , where residents have the highest disposable incomes in Canada and the lowest unemployment rate. Rising demand for retail space in Canada keeps occupancy rates high – occupancy rates have remained consistently above 95% since 2003, according to international research consultancy Colliers – which puts upward pressure on rental rates. Rents are still relatively low in Alberta and Saskatchewan, providing plenty of space for future increases in rent and capital value.
Canadian commercial real estate offers investors a safe haven in today’s turbulent global economy. Commercial real estate provides a hedge against inflation that is more established than residential real estate and less volatile than stock markets. However, commercial real estate is often difficult or impossible for investors to access on their own. Redev provides investors easy access to this low-risk, high-return investment opportunity at an affordable entry level. With the uncertainties today in the global economy, isn’t it time to move into a safe investment, and sit back and watch the returns accumulate in your bank account, wherever that may be.