Land Equity

Land equity investment involves the strategic acquisition of property in advance of expanding urban development and profiting from its sale once the property has been rezoned.

 

TSI performs on the ground research and analysis to acquire the best prospective properties in locations where land suitable for development is scarce and demand is high. Following acquisition, we syndicate up to 95 percent of the property, apportioning it into units. (TSI typically retains up to 5 percent of every property, so we have a vested interest in seeing our property and investment succeed.) During this period we also undertake various studies and engineering analyses to develop a business case or draft plan for rezoning the land. After the draft plan is approved and if the land is sold, proceeds from the exit are distributed to investors.*

 

  • Investment in real asset growth
  • TSI strategically acquires prospective properties in locations in high growth regions of Canada where land suitable for development is scarce and demand is high
  • Land rezoned and sold to developers or other targeted buyers
  • Returns payable upon exit

Here is a breakdown of the various phases each investment property goes through in an expected typical scenario:

There is no guarantee or assurance that rezoning or other governmental approval will be obtained and the land will be sold or sold at favourable timing or at a favourable price.  The scope and depth of analysis and planning by or involvement of TSI and third parties may vary by project and there is no guarantee of success of analysis, acquisition, management or disposition.  If the disposition is not successful, the return on a land equity investment may be materially lower than the originally invested amount.

 

1 Analysis

2-3 YEARS

2 Acquisition

6 MONTHS -1 YEAR

3 Asset Management

2-8 YEARS

4 Disposition

6 MONTHS -2 YEARS