Similar to the Commercial Real Estate Fund, The Multi-Residential Real Estate Fund will focus on core quality multi-residential real estate in the major markets in Eastern Canada (Toronto, Southwestern Ontario, Ottawa, Montreal, Quebec City and Halifax) with a targeted fund size of between $500 million to $700 million (CAD) of Equity.
RECan’s goal is to deploy capital in 2023 and 2024, with a target for 2023 of at least $200 million (CAD) of equity deployed.
For diversification purposes, the portfolio, when completed, should contain a minimum of 10 multi-residential properties in at least three distinct geographic markets, with a targeted minimum asset value of $20 million (CAD).
To increase the scale and enhance the return the Fund will finance the portfolio with non-recourse mortgages (recourse to property only) with an overall leverage target of 50% LTV (loan to value).
The cash distribution will be provided annually to the investors. A cash reserve and/or a credit facility will be established to help fund any required capital projects.
The Fund will not contain any development risk, as the earliest investment will be at substantial completion and lease-up, with preference for a minimum of one to three years of operating history.