More calls than we could finish before Friday. Investors still completing subscription agreements. Rather than rush them, we extended the Tranche 1 close. The 24% targeted return is still on the table. Book a call this week and we hold an allocation for you.
PV, Mit & Jeff
The market told us. The calls told us. The subscription agreements still being completed told us. Tranche 1 is extended. If you have been on the fence, this is the door reopening.
16 minutes · PV & Jeff · Full Wellington Towers deck walkthrough, the capital stack, the NOI math, and exactly what institutional buyers are pricing.
The week leading into the May 15 close was the busiest stretch of investor calls we have had on a single fund. Calendars were booked back to back. By Thursday evening, we had more investors in the pipeline than we could comfortably finish subscription paperwork for by Friday night.
So we made a call. We extended the Tranche 1 close. Not because the math changed. Because the demand changed. Investors who were mid subscription deserved the runway to finish properly. That decision also opens a small window for a few more allocations at the original Tranche 1 terms.
If you have been on the fence on Wellington Towers, this is the door reopening. Briefly. Book a call this week and we hold your allocation
The last seven days of calls were not about urgency. They were about clarity. Three things kept coming up on every call. They are the same three things that turn a "maybe" into a "yes" in this market.
This was the moment most calls clicked. A condo developer needs 432 individual retail buyers showing up with mortgage approvals to clear a project. If the retail market is soft, that developer is stuck. We need two things to exit. A fully leased building, and one acquirer to buy it.
Canada is in a structural housing shortage. People need a place to live. We are coming online deliberately below market at $980 to $1,500 a door in a London market where comparable purpose built rental already asks $1,800. That is not a forecast. That is the price we are willing to charge to fill the building fast. By stabilization, the comparable is north of $2,100. The spread between our rent and the market keeps widening every year until we lease up.
A fully leased PBR with affordable rent below market is the cleanest product an institutional acquirer can buy. There is no lease up risk to underwrite, no rent roll question mark to discount. They are buying a building that is already full, in a city that does not have enough housing, at rents that will rise with the next renewal cycle. That is what makes the exit confident, not hopeful.
Once investors saw that our exit buyer can acquire a $100M stabilized building with $5M down via CMHC insured financing, the buyer pool stopped looking abstract. It stopped being "some pension fund". It became a real, financeable acquisition for mid sized REITs, family offices, and institutional capital. The exit is not a story. It is a financing structure that already exists, and it is what lets us print the 24% return at our cost basis.
Cycles move. The condo trade is paused now and will come back at some point. What does not move is the math under purpose built rental. The value of a rental building is the NOI capitalized. NOI is the rent collected minus the cost to operate. The cap rate the buyer applies to that NOI is what sets the price.
In core workforce housing, in a city with a structural rental shortage, the rent is durable, the unit stays full, and the NOI grows on every renewal. That is the engine that drives the value of the asset, and that is exactly what institutional buyers are paying for. Stable NOI in a shortage market is the product they want. We are building it.
The Montreal fund move last week is the public version of what is happening quietly across Canadian institutional capital. They are not buying condos to flip. They are buying buildings to hold for the NOI. We are not buying. We are building. Same trade, earlier in the chain, at developer cost basis.
432 Units · 25 Storey Purpose Built Rental · London, ON
$100K Minimum · Cash Only · Accredited / Existing FC Investors
Tranche 1 Extension: 24% Net Annualized Targeted Return
Book a 30 minute call this week through the link below.
The moment your call is on the calendar, we mark an allocation for you at the 24% Tranche 1 terms.
On the call we walk through the deck, the build, the exit, and answer every question. No pressure to subscribe on the call.
If it is a fit, we send the subscription package and run it through with you. If it is not, we tell you that on the call and point you at FCPRET or the door, whichever fits.
FCPRET is open continuously at a $10,000 minimum, eligible for RRSP, TFSA, RESP, LIRA, and cash. 7% targeted distributions paid monthly, 15% targeted total return. If you want apartment income without the development lockup, FCPRET is the way in.
Stabilized Multi Family Buildings · Southwestern Ontario
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible
Targeted Return: 15% Annualized (7% cash + 8% appreciation)
To your success,
PV, Mit & Jeff
P.S. One honest note. The reason we are extending is operational, not promotional. Investors mid subscription deserve the time to finish properly. The few additional allocations that opens up are real, but limited. If Wellington Towers is on your radar, book the call this week. We hold the allocation the moment the call lands on the calendar. Reply Wellington if you want us to send the deck before the call.
By the Numbers
