TORONTO, April 2, 2014 /CNW/ - Return On Innovation
Advisors Ltd. ("ROI Capital") announced today that it has
entered into an agreement with a subsidiary of DREAM Unlimited
Corp. (TSX:DRM) ("DREAM") whereby DREAM will acquire the
rights to manage ROI Canadian High Income Mortgage Fund (TSX:
RIH.UN), ROI Canadian Mortgage Income Fund (TSX: RIL.UN), ROI
Canadian Real Estate Fund (TSX: RIR.UN) and privately held ROI
Institutional Private Placement Fund (collectively, the "ROI
Funds").
In connection with the change of manager, it is proposed that
the ROI Funds will complete a reorganization involving, among other
things, the transfer of the assets of each ROI Fund to a
newly-formed, open-ended investment trust called DREAM Alternatives
Fund ("DREAM Alternatives") in exchange for units of DREAM
Alternatives. Unitholders of the ROI Funds would then receive units
of DREAM Alternatives on redemption of their ROI Fund units under
the reorganization.
DREAM Alternatives will be managed by a subsidiary of DREAM and
will provide unitholders with exposure to real estate, real estate
lending and infrastructure, including renewable power, and
accordingly leverage DREAM's asset management platform, track
record and expertise in these areas.
"Given DREAM's roster of 178 real-estate professionals and
management of over $13.8 billion of
real-estate assets, we believe the proposed transaction between the
ROI Funds and DREAM will offer great synergies to deliver on
unitholder expectations and value." said Wilfred Vos, President of ROI Capital.
The closing of the transaction and the completion of the
reorganization is subject to customary closing conditions including
obtaining requisite unitholder, stock exchange and regulatory
approvals in addition to the Independent Review Committee
recommendation for the ROI Funds. It is anticipated that an
information circular will be prepared for mid May 2014, with the unitholder vote expected to
occur in June 2014. Subject to the
appropriate approvals, the transaction is expected to close in
July 2014.
Further details of the transactions will be set forth in an
information circular that will be mailed to applicable ROI Fund
unitholders.
About the ROI Funds
The investment objective of ROI Canadian High Income Mortgage
Fund is to provide unitholders with attractive risk adjusted,
monthly, tax advantaged cash distributions, a high current yield,
some long-term capital appreciation and preservation of capital by
investing primarily directly or indirectly in, or by obtaining
economic exposure through a forward agreement to, an actively
managed diversified portfolio of commercial mortgages, loans
secured by, or that provide a participating interest in, real
property or ownership interests in real property. The net asset
value per unit of ROI Canadian High Income Mortgage Fund as of
April 1, 2014 is $9.3841.
The investment objective of ROI Canadian Mortgage Income Fund is
to provide unitholders with attractive risk adjusted, monthly, tax
advantaged cash distributions, a nominal after-tax current yield,
long-term capital appreciation and preservation of capital by
investing primarily, directly or indirectly in, or by obtaining
economic exposure through a forward agreement to, an actively
managed diversified portfolio of commercial mortgages, loans
secured by, or that provide a participating interest in, real
property or ownership interests in real property. The net asset
value per unit of ROI Canadian Mortgage Income Fund as of
April 1, 2014 is $9.5539.
The investment objective of ROI Canadian Real Estate Fund is to
provide unitholders with attractive risk adjusted, monthly, tax
advantaged cash distributions, a nominal current yield, some
long-term capital appreciation and preservation of capital by
investing primarily, directly or indirectly in, or by obtaining
economic exposure through a forward agreement to, an actively
managed diversified portfolio of commercial mortgages, loans
secured by, or that provide a participating interest in, real
property or ownership interests in real property. The net asset
value per unit of ROI Canadian Real Estate Fund as of April 1, 2014 is $9.3709.
The investment objective of ROI Institutional Private Placement
Fund is to provide unitholders with attractive risk adjusted,
monthly cash distributions, a nominal current yield, some nominal
long-term capital appreciation and preservation of capital by
investing primarily, directly or indirectly, or by obtaining
economic exposure through one or more forward agreements to, an
actively managed diversified portfolio of commercial mortgages,
loans secured by, or that provide a participating interest in, real
property or ownership interests in real property. The net asset
value per unit of ROI Institutional Private Placement Fund Series A
as of April 1, 2014 is $91.8002.
About ROI Capital
Established in 2002, ROI Capital is a privately held Canadian
investment management firm that specializes in commercial
mortgages, loans and private real estate investments. With a deep
understanding of the fundamentals of the commercial real estate
market, ROI Capital strives for capital preservation while seeking
to deliver sustainable income and long-term returns for investors.
This is achieved by primarily focusing on income-producing
properties in large urban markets. ROI Capital has created a bridge
between investors seeking the income potential from alternative
investments and borrowers in Canada's flourishing commercial real estate
sector seeking non-bank financing. In just over a decade, ROI
Capital has financed over $1.7
billion (as of December 31,
2013) across approximately 200 private commercial real
estate investments and has continuously delivered value and income
to investors. Website: www.roicapital.ca
About DREAM
DREAM is an innovative real estate manager and developer
primarily focused on the commercial and residential sectors in
Canada and Germany and renewable power in Canada.
From its creation, DREAM has successfully identified and executed
on opportunities for the benefit of the business, shareholders and
clients.
DREAM provides asset management for over $13.4 billion of assets. DREAM is the asset
manager for three publicly listed REIT funds in Canada including: Dundee REIT, Canada's largest office REIT, Dundee
International, Canada's largest
REIT that invests only outside of Canada and Dundee Industrial REIT, one of
Canada's largest dedicated
industrial REITs.
DREAM is also the co-manager of a $345
million infrastructure fund with a focus on wind and solar
Canadian renewable power projects. The total value of these
projects is about $1.3 billion
including debt.
Its asset management team consists of 178 real estate
professionals with backgrounds in property management,
architecture, engineering, construction, finance, accounting, sales
and marketing and law. The team brings experience from
virtually all the major real estate organizations in Canada and has expertise in capital markets,
structured finance, real estate investments and management across a
broad spectrum of property types in diverse geographic
markets. It carries out its own research and analysis,
financial modeling, due diligence and financial planning.
DREAM has an established track record for being innovative and for
its ability to source, structure and execute on compelling
investment opportunities. DREAM has completed over $17 billion of commercial real estate
transactions over the last 20 years. Website: www.dream.ca
Certain statements included in this news release constitute
forward-looking statements. The forward-looking statements are not
historical facts but reflect current expectations regarding future
results or events. These forward-looking statements are subject to
a number of risks and uncertainties that could cause actual results
or events to differ materially from current expectations and,
accordingly, readers are cautioned not to place undue reliance on
such statements due to the inherent uncertainty therein. ROI
Capital undertakes no obligation to update publicly or otherwise
revise any forward looking statement whether as a result of new
information, future events or other such factors which affect this
information, except as required by law. Investment funds are not
covered by the Canada Deposit Insurance Corporation or by any other
government deposit insurer. There is no guarantee that an
investment in any ROI Fund will earn any positive return in the
short or long term nor is there any guarantee that the ROI Fund's
investment objectives will be achieved or that the net asset value
per unit will appreciate or be preserved.
SOURCE ROI Capital