Q& A
Financial Details
Example: Value of 1 share at the Bannatyne joint venture CAD$229,200: Required Capital: 45% Financing: 55%

Income Yearly Income Monthly Income
Gross Income $19,968 $1,664
Mortgage Payment $10,080 $840
Net Income $9,888 $824
TOTAL Income $9,888 $824
Return on cash Investment 9.6%
Principal $2,400 $200
Return on Investment including Principal $12,288 $1,024
Return on Investment including Principal 11.9%
**All prices are in CAD
What is a joint venture?
A joint venture is created for a specific purpose, in this case, to purchase a commercial property together with other investors who share an interest in the property. An agreement is made between two or more parties to complete the investment.

How does a joint venture work?
We source the property and split it into equal shares, for example 9 shares. so each investor/shareholder will own a portion of the property according to the amount of shares he buys, so effectively if you purchased one share you would own 1/9th of the property. If you purchased 2 shares, then you would own 2/9ths of the property.

What about the mortgage - do I need to qualify for approval?
No. Mortgage is already arranged – it is given to the trust company set-up on behalf of all the shareholders, it is not a personal mortgage so therefore there is no need to make an application, no form filling, no payment slips required - absolutely nothing. You will have a share of the mortgage with the other shareholders.

What does owning a share mean?
It means you are part owner of the property together with the other shareholders.

What are the benefits of owning a share in a Canadian property?
The properties we source and offer to our investors generate an excellent return, much higher than is achievable in the UK. Owning a share in a joint venture gives you the option to partly own a major commercial property and get onto the commercial property ladder with a relatively small capital investment. Simply compare the returns on any of our joint ventures to the returns generated in the UK.

I want to buy a share, what do I do next?
Initially you would sign a joint venture reservation form and pay a booking deposit of CAD$25,000 to secure your share. The deposit payment is wired directly to the Canadian solicitors in trust. This initial deposit is refundable up to the time of signing the joint venture Agreement. Once the deposit has been paid you will receive the joint venture Agreement for signing, and return with the balance of the monies to make up the total amount of the cash requirement, and purchase costs.

What are the purchasing costs?
Purchasing costs are made of: land registry tax, solicitors legal fees, mortgage arrangements, company registration and commission.

What is the timeframe for the transaction?
Generally these shares are taken up very quickly, and transactions can complete within a matter of weeks so there are no delays in getting your money to work, and getting a return quickly.

How often do I get paid?
Rent is paid quarterly in advance directly into your account (A Canadian account is not necessary).

Are there any admin fees to be deducted from my rental income?
No. Tenants are on FRI leases which also mean that they cover all costs derived from occupying the property.

How many shares can I buy?
You can buy as many shares as you want. Or, if you are early enough in the launch of the JV, you could buy all the shares and own the whole property.

Are there any difficulties when purchasing as a Foreign investors
No. There are no difficulties for foreign investors to purchase property in Canada. Investor who wishes to expand his investment property portfolio or perhaps establish a business locally is encouraged to do so. The UK has a double taxation treaty with Canada.

Who will sell my share(s) in the future?
According to the agreement, you are obliged to offer your share(s) to the other shareholders in the joint venture, and if a sale has not taken place, you are then free to offer the share to the public.

What is the Capital Gains Tax (CGT)
CGT is a tax applied to gains made as a result of investment property sale. In Canada, CGT differs between provinces, but in Manitoba it applies to only 50% of the profit generated. Tax credits may be accrued for maintenance and rates on your investment properties. They can be offset against CGT.

Legal Advice
You have our solicitors working on your behalf to close the deal in Canada. But you could also use your own country based solicitor to review the agreement for you for which fees we would pay.