Alitis Private REIT
The Alitis Private REIT is designed to offer investors access to high quality private real estate in one well-diversified, Multi-Manager solution. The objective of this portfolio is to generate a moderate level of income plus capital appreciation over the long-term. The Multi-Manager structure enables the REIT to gain exposure to a wide range of real estate types, geographic regions, and manager expertise. The target return is 7 - 10%, net of fees, over a 5 - 7 year hold period.
- Diversified portfolio of professionally selected and managed private real estate
- Actively managed, with the ability to opportunistically buy under-valued real estate
- In-depth manager due-diligence and monitoring by Alitis’ Portfolio Managers
- Monthly liquidity, with a minimum 30 day notice period
- Quarterly distribution of accrued net rental income and any realized capital gains
- Monthly PACs and SWPs for electronic deposits and withdrawals
- Private REITs can have significantly more development projects than public REITs - a real advantage to drive higher returns
- Tax advantages - rental income partially tax-sheltered with depreciation. Potential annual and accumulating capital gains from development profits and asset appreciation.
Breakdown of Target Returns
- Income Properties: 7 - 9%
- Development Properties: 20 - 25%
Note: Some of the development properties (apartments) will be retained to build up a solid portfolio of newly-built, condo-grade, apartments.
Diversification - The Key to Improved Safety
- Multiple Real Estate partners
- Regional diversification in Canada and the US
- Asset class diversification - focus is on apartments but can also include townhomes, condos, commercial, industrial and office buildings
- Public REITs and funds may be included
Subscriptions and Redemptions
The holdings of the Alitis Private REIT have reduced liquidity and as such, subscriptions and redemptions will take place monthly, on the last Friday of each month. Redemption requests must be received at least 30 days in advance of the month-end in which you wish to redeem. The maximum amount that may be redeemed each month shall not exceed .0025% of the Net Asset Value (NAV) of the REIT. Payment may be made by way of cash, a promissory note, or unit certificates of the REIT.
Available to Investors in Western Canada
Units of the Alitis Private REIT are available through Alitis Investment Counsel and approved Dealers, to residents of British Columbia, Alberta, Saskatchewan, and Manitoba - the jurisdictions where Alitis is licensed to do business.
We consider the Alitis Private REIT to be a medium to higher risk investment, primarily due to the limited liquidity. Although it has monthly liquidity, with a minimum 30 days notice, we do not recommend its use for investment time horizons less than five years.