Qualified high net-worth investors are being offered the opportunity to invest in a new Evton Capital Partners Ltd.-managed commercial real estate investment fund that has a minimum subscription of $100,000 with a cash distribution of 5% in 2006. The targeted minimum annual total return is 15%.
Evton Capital Partners, on behalf of the fund, acquires direct ownership of Canadian office, industrial and retail properties, aggressively manages the properties to add value, and sells opportunistically. The fund also invests in Canadian real estate companies and real estate investment trusts. Evton Real Estate Fund I in 2005 completed the acquisition of five Toronto office properties valued at $35 million and purchased various real estate securities. The fund’s total return was 30%.
Evton Capital Partners is a real estate investment company founded in 1995. Evton Capital Partners has created over $100 million of investment transactions for high net-worth clients. Between 1997 and 2004 it sold 23 properties valued at $74 million for an average total annual return of 29%. Michael Bunston, Bill Evans, and David Bunston are the principals of Evton Capital Partners and each have been involved in the commercial real estate investment industry for 20 years.
“We have done extremely well in the past decade with our capital and will take a somewhat more cautious approach targeting a minimum annual return of 15%,” said Evans.
“The big pension funds, REITS and foreign capital are focused on larger transactions that have high profile,” he added. “We are a niche investor and have had great success in owning mid-market properties in the $5 million-$20 million range. There are fewer competitors in this market and a much larger choice of properties in all asset classes to pursue. These investments hold tremendous opportunities to add value through hands-on management and property enhancements to generate reliable cash flow and capital gains.”
Bunston added that the fund also invests in Canadian REITs based upon the quality of management and assets that now exist in the public market. “Canada’s $22 billion REIT market includes some excellent management teams and investment strategies that we believe will continue to create value for our unit holders,” he said. “As highly liquid investments, with attractive yields and total returns, they complement our direct ownership value creation program.”
The fund provides quarterly distributions of cash flow, less management expenses and reserves. Sale proceeds from the sale of any fund asset are either distributed or reinvested to enhance returns.
Evton Capital announces real estate fund aimed at high net-worth investors
Fund aims for a targeted minimum annual return of 15%
- By: IE Staff
- March 31, 2006 March 31, 2006
- 14:37