28 Apr, 2009
NEW Platinum Investment Product “Urban Redevelopment” Launched
Posted by: Investor In: Real Estate
I’m delighted to inform that my company TSI International Group Inc. is coming out with an exciting NEW real estate investment product called the “Platinum Hybrid Development” (PHD) fund.
PHD is similar to “Urban Renewal” concept. The urban redevelopment project targets residential properties that are located in desirable areas but are currently in an undeveloped state. For example, a small single storey home in an area that is becoming an area of two storey homes sought after by a wealthier demographic. This business model has fast turnaround time and incurs minimum capital outlay. It does not need huge facility that involves time and money: e.g. cost for roads, drains, sewage, open space, community services like churches, fire station, schools etc. Each redevelopment property can be completed in a period of 6 to 12 months.
The urban redevelopment will target on locations that already have exhibited demand and that have proven to provide good returns historically, i.e. Greater Toronto Area (GTA). During the investment term, the funds are used for buying up old buildings in downtown Toronto, restore or redevelop them into buildings like new, and sell them at a profit. Then reinvest the proceeds in the next projects.
This project has good liquidity such as the urban redevelopment can be done at the rate of 6 to 9 months for a building which means periodical return on funds within a year. This fund guarantees 5% return on investment per annum and at end of 5 year term, profit-sharing of the sale of the redeveloped buildings.
