Pacific Calgary Opportunity Trust II – December 2020 Update

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Pacific Calgary Opportunity Trust (PCOT II): Investor Update

 

January 2, 2021 –  We hope this update finds you and your loved ones safe, and that you were able to make the best of an unusual holiday season. The Coronavirus pandemic of 2020 has certainly challenged the resilience of the economy and businesses of all kinds, including land development. Thankfully, Pacific’s land investment model is itself resilient to unfavourable economic conditions. We look forward to better times as the province and the country worm to recover lost ground over the coming months and years.

As was shared with Investors in June of this year, there was a pause in land development activity earlier this year that continued through September, which gave Pacific with an extended period to investigate the cost basis under which the McClellan Business Park lands will be eventually developed. With Hopewell’s Interlink Logistics Park now underway to the west of our property, across Dwight McClellan Drive, Pacific was able to gain valuable information on regional servicing in East Balzac. Hopewell has brought municipal services almost to our borders to serve their own interests, which has allowed for more precise negotiations with Rocky View County. At the same time, Pacific made the decision to simplify the design of McClellan Business Park substantially, and the resulting cost basis for the eventual development of the lands is now at a much more favourable level. Refining the development cost basis for the next developer supports the value of the sale and exit Pacific is now working to achieve.

McClellan Business Park features excellent transportation connections to two major arteries (QEII and Stoney Trail) and the Airport (as an Inland Port for logistics). The East Balzac region, over the past year, seems to have reached a tipping point where there is less development land available compared with lands that have already been developed and occupied. Pacific has fielded enquiries on our lands from several developers over the past year. Specifically, a development corporation we are discussions with has shown interest in acquiring our lands, and here in the New Year, we will restart discussions toward the goal of having an Offer on the table.

In closing, we remind Investors about the world we are all living in. Like many other industries, the land development community is still coming to grips with what the economic disruptions caused by the pandemic over the past year will mean to land and development going forward.

The overall picture of Calgary, Alberta, is of a downturn, and what bright spots there are, or what market confidence exists to support large or long term land purchases isn’t yet clear for 2021 and beyond. Still, two community developers we are in contact with were, recently, somewhat surprised to report their own sales absorption rates for 2020 are not much different from that of an average ‘down’ year. They also noted it was much more effort just to reach those moderate sales numbers. So, while 2020 was a very challenging year in this and many more respects, there is reason for optimism in the resilience people and companies can demonstrate in times of crisis, and here is hoping the worst of the pandemic will soon be behind us all.

Pacific Investments & Development Ltd. wishes you a safe and happy Holiday Season, and we look forward to a prosperous year in 2021. 

 

Best Regards,

Pacific Investments & Development Ltd

 

 

Alignvest Student Housing – Press Release

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We’re very pleased that the REIT is completing its first acquisition in Western Canada. The University of Alberta is a Top 5 Canadian University and rated amongst the top 100 universities in the world. Should you have any questions or are interested in learning more, please do not hesitate to contact your MFG Portfolio Manager.

Please see the below press release regarding Alignvest Student Housing.
Press Release

Adventus Realty Trust – Q1 2020 Financial Statements and Report to Unitholders

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Dear Adventus Investors,

Please see the Report to Unitholders and the Q1 2020 update from Adventus’ management team.

 

Report to Unitholders

Financial Statements – Q1 2020

Passive Income Rules

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Introduction

In July 2017, Finance Minister Bill Morneau announced potential options for changing the taxation of investment income earned by private corporations. The proposed changes were strongly opposed by many stakeholders and, in October 2017, Minister Morneau announced that changes would be made to the proposed new rules and that draft legislation would be released as part of Budget 2018. The resulting highly anticipated Budget was tabled by Minister Morneau on February 27, 2018. While Budget 2018 has scaled back many of the proposed measures from the July 2017 Consultation Paper, it has moved forward with various amendments to the Income Tax Act1 that will affect small business corporations in Canada. The amendments with respect to passive income earned by a private corporation will still have an adverse effect on small business owners and may affect the way small business owners choose to invest their retained earnings. In particular, the effect of the changes on the small business deduction (“SBD”) will likely leave small business owners seeking tax-efficient options for the investment of corporate retained earnings that will reduce the impact of these changes.

Bill C-74, which contains the legislative provisions to implement the new passive income rules, received Royal Assent
on June 21, 2018

 

See below for full article:

 

passive income rules

Meet the Insurance Team

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We are thrilled to highlight our Insurance Team and introduce a new section of our blog to partner with our investment updates. Our inhouse Insurance experts have over 100 years of combined experience in the business. We will be updating periodically with articles and information we believe is important to our clients.

 

 

Click here to find out more:

MFG Insurance Blast

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