Company Description
Learn how to start investing today - view our step-by-step guide here.\n\n\nDirect access to land development investment opportunities across Metro Vancouver.\n\nPROPetual is a private Real Estate Investment Trust (“REIT”) for investors seeking to capitalize on land development opportunities within Metro Vancouver, British Columbia.We eliminate all barriers to entry for retail and accredited investors by leveraging the full network, capabilities and resources of Isle of Mann Property Group’s vertically-integrated platform.OUR PROCESSInvestment Strategy\nPROPetual projects are acquired directly from Isle of Mann Property Group’s existing queue of qualified development opportunities. By aligning with IOM, PROPetual investors are insulated from many project risks. To further limit investor exposure, we mitigate many inherent risks from land use entitlement by acquiring projects when conditional zoning is achieved.\nProject Qualification Process:\nPROPetual REIT land development projects are purchased exclusively from Isle of Mann Property Group and benefit from a rigorous land-acquisition qualification process that immediately sets projects up for success. Before project acquisition, IOM principals oversee all sourcing and due diligence activities including, but not limited to:\nIdentifying Off-Market OpportunitiesThrough our trusted network of local market experts, IOM often receives the first call for strategically located, off-market development opportunities. Properties are evaluated on their quality of location, value, scale and potential for positive socio-economic impact.Detailed Financial AnalysisWe generate comprehensive development proformas and other market analyses to evaluate risk-adjusted returns, as well as a sensitivity analysis to assess how unforeseen changes can impact overall profitability.Diligent Transaction ManagementOur experts conduct detailed due diligence on the development potential of the land, including land title search, environmental assessment, and architectural massing study. Ad hoc legal or tax expert coordination occurs throughout deal execution.\n\nProject Acquisition Plan:After land is secured by IOM, project consultants are enlisted to engage in the municipal planning and development process (see flow chart above). The result of this process entitles the property with the desired land use to construct the envisioned project, while also detailing the design of the development itself. However, inherent within this process is land use entitlement risk.\nIdentifying Risk: BureaucracyAs seen in the flow chart above, the planning and development (land use entitlement) process is lengthy with several levels of approval required from various municipal stakeholders, including City Staff, council members and the general public.\nUnderstanding Risk: Approval, DelaysThe simple logistics of land entitlement across Metro Vancouver has become a multi-year endeavour often taking longer than anticipated. Developers who significantly leverage acquisitions at the early stages of the development process are subject to significant carrying costs that erode project profitability. Failure to secure majority support from any of the approval points could result in a complete revision of the project—compromising the previously relied upon concept and rendering the project financially unfeasible.\nMitigating Risk: Acquire Third Reading Sites OnlyPROPetual REIT only purchases IOM projects where land entitlement risk has been sufficiently mitigated. This implies that the project vision has been approved, and a clear development/construction schedule can be quantified. This is achieved at the Third Reading milestone, where the project is granted preliminary approval, provided the developer addresses a final list of conditions to be resolved.\nAs an added benefit to PROPetual investors, IOM projects may be discounted at up to 5% of market price (as determined by qualified appraisal), delivering immediate equity appreciation for investors.\n\nProject Execution:\nUpon project acquisition, IOM oversees all project management activities, with direct involvement as development manager and general contractor. This ensure proficient execution of financing, construction, and sales management processes.\nFinancing ArrangementsPROPetual investors can leverage IOM’s longstanding financial relationships with tier 1 national banks and local credit unions to secure competitive project financing rates. We utilize IOM’s AAA-rated financial profile for necessary corporate/personal guarantees.Project ManagementDevelopment projects require diligent oversight on multiple fronts to ensure project success. Sales and marketing administration, cash flow management and other high-level operations all fall within IOM’s role as General Partner of any given project.Construction ManagementWith its in-house general contracting, PROPetual projects directly benefit from IOM’s vertically integrated platform. Qualified projects benefit from the construction team’s input in cost-mitigating design decisions, as well as the development team’s oversight of construction materials and labour.WHERE WE INVESTMarket Strategy\nMetro Vancouver is made up of 23 authorities and municipalities, spanning over 2.8 million square kilometers. With a population greater than 2.4 million, it is the third most dense region in Canada, with nearly 5,500 residents per square kilometer.In recent years, Metro Vancouver has seen rapid growth and immigration, largely attributed to the surrounding landscapes and world-class living conditions. The beautiful scenery shared in every section of the lower mainland is hard to compete with, ranging from views of the North Shore mountains, the Straight of Georgia and various inlet’s, and the combination of nature with urban development.The word of Metro Vancouver’s beauty and appeal is no secret, being a perennial nominee for “most livable city in the world” and ranking in the top-10 for many years. The diverse geographical location it is situated in caters to many industries, including film, a hot-bed for countless Hollywood hits, TV shows, and Automotive ad campaigns.\nTarget Submarkets within Metro VancouverIOM operates predominantly within the Metro Vancouver municipalities of Surrey and Langley, where development fundamentals of (1) investment in public infrastructure, (2) population growth / immigration, and (3) affordability are arguably the strongest in the region. These municipalities are particularly attractive for their perceived balance between home values and commute times to city centres, while leveraging Metro Vancouver’s global appeal and unmistakable beauty toward a higher quality of life.\n\nTARGET MARKET OPPORTUNITYCity of SurreyThe City of Surrey is one of 21 municipalities in Metro Vancouver, being the largest city in land area, and second-most populous city with a population of more than 517,000. Comprised of urban areas as well as significant agricultural and rural areas, Surrey is one of the fastest-growing, culturally diverse cities in Canada.Surrey enjoys many advantages within the region, including excellent transportation links, the emergence of City Centre as the metropolitan centre of the South of Fraser area, a large skilled labor force, abundant agricultural lands, a growing University District and Metro Vancouver’s largest vacant industrial land inventory.The City’s state-of-the-art infrastructure, low business taxes, qualified talent and ever-expanding innovation ecosystem gives businesses the optimal environment for success.\nFor further detail on our target market view our website here. TARGET MARKET OPPORTUNITYTownship of Langley\nLocated in the east region of Metro Vancouver, with the Fraser River to its north and the US border to its south, the Township of Langley offers some of the region's most affordable housing, world-class parks & amenities, and an efficient transportation network. This agriculture-rich portion of Metro Vancouver makes its name on the beautiful landscapes and diverse settings that it offers.Known as the \