Our real estate activities focus on income-producing properties with adequate debt service ratios of at least 1.2 times. We create value through the conversion of older income-producing properties to more current and profitable uses. This gives the manager more control over the growth in value of the property. More specifically, James Edward focuses on well-located properties that cater to seniors, health care services, graduate students or young professionals with significant cash flow and value upside potential.
Minimum Required Return
A minimum required internal rate of return (IRR) of 20% for equity investments. Fixed income investments will vary depending on the debt instrument, borrower and interest rate environment.
Geography
James Edward’s real estate activities primarily cover the Ottawa and Montréal cosmopolitan areas. Opportunities beyond are considered on an ad-hoc basis and may be undertook through local partners.
Property Type
Income-producing property: Residential, Mixed-Use and Commercial.
Transaction Size
A single deal could range from 5 to 20 million dollars in gross investment value.
James Edward uses Limited Partnerships to arrange, sponsor and syndicate attractive real estate opportunities. Through Limited Partnerships, James Edward can take direct and indirect equity stakes or extend credit through fixed income investments including non-prime mortgages, 2nd mortgages or mezzanine loans. Equity and debt investments are syndicated and tailored to fit the specific needs of the deal, including features such as Payment-In-Kind (PIK) on mezzanine loans.
The Limited Partnership (LP) structure is highly tax efficient and accommodating for investors with disparate priorities, allowing the co-existence of taxable and tax exempt investors. An LP does not pay tax on its income and is therefore treated as a flow-through vehicle – no double taxation. Its income retains its source identity. As such, investors take advantage of cost of capital allowance deductions, which are often significant.