Skyscape Capital Inc. Alberta Opportunities 2015

Transcription

1 Skyscape Capital Inc. Alberta Opportunities 2015

2 Land Development for Residential Communities Land Development Lakewood Meadows The Lakes of Muirfield & The Homesteads Twin Valley Waterfront Community Calgary The Lakes of Muirfield & The Homesteads Lakewood Meadows Twin Valley

3 What is Land Development? ENTRY: Land Acquisition Buy Raw Land (typically farm land) Project Approvals Create a preliminary design Work with Government to approve change in use Site Development Create detailed design Work with Government to approve the development Construction: Site grading Roads & Sidewalks Water Sanitary Services (sewer) Storm Services (storm water management) Power/gas/phone/cable EXIT: Sell Serviced Lots to a Homebuilder

4 Why Land Development? 7 6 Increase in Value by Homebuilder 5 Value ($$) Increase in Value by Land Developer 1 0 Farm Land ASP Approval Serviced Lots Residential Homes Stage of Development

5 Why Not In Calgary? The Mayor is against Urban Sprawl Restricted development on fringe of city Land is EXPENSIVE (bought by speculators during the boom) Calgary Pushing development out of the city to the surrounding communities!

6 Why Skyscape? Skyscape has sold over 1,500 builder lots over the past 10 years and has a proven track record in real estate development projects in Alberta.

7 The Management Team Bill Maher, R.E.T. Bill Maher is the president of Skyscape Management Inc. Bill has been providing hands-on experience for numerous land development projects in Alberta for the past 27 years as either a principal or a consultant. He is also the co-founder of Lee Maher Engineering Associates Ltd., a successful land development and municipal engineering consulting firm. He has over 30 years of planning, municipal, land development, engineering, surveying, environmental, project management, budgeting, financing control, construction and marketing experience. One of Bill s greatest strengths is working with contractors to keep projects on schedule and on budget. He is also very experienced in dealing with municipal councils and administration which is key to obtaining approvals for land development projects. Neal Coulter Neal Coulter is a principal of Skyscape Management. He has been in the Alberta land development business for over 17 years and in the Alberta real estate business for over 25 years. Neal has represented Alberta investors/landowners in big cities and small towns in many different aspects of the land development approval process including; due diligence, Municipal Development Plan Amendments, Area Structure Plans, Neighborhood Structure Plans, Outline Plans, Land Use Zonings, Development Permits, Building Permits, utility right of ways, Property Tax issues, and Expropriations. From 1995 to 2005 Neal successfully co-managed 10 syndicated land projects in Calgary and Edmonton with approximately 1,400 individual investors/landowners. Neal s strengths lie in his relationships in the development industry which have been built over the past 17 years through integrity and honesty. His ability to communicate with the multitude of political, service and investor/ownership groups ensures that projects are completed on time and on budget.

8 Vertical Integration Co-located with Skyscape. Bill Maher is the co-founder and principal of Lee Maher Engineering.

9 How the Projects are Funded & Where YOU can Participate Construction Financing from a Bank or Alternative Lender Letter of Credit from a Bank or Alternative Lender Private Equity Investors Time Short Term Seed Capital (Private Investors) Land Purchase Approvals, Preliminary Design, Offering Expenses Equity Required to Secure Construction Financing Construction Of Phase 1 Letter of Credit Required by Municipality in Order to Proceed With Construction

10 Short Term Seed Capital Debt Instrument (Promissory Note/Debenture) month term 18-24% Cumulative Simple Return Principal & Interest Paid on Maturity Private Equity Capital Raise used to take out Seed Capital investors. Construction Financing from a Bank or Alternative Lender Private Equity Investors Short Term Seed Capital (Private Investors) Time Land Purchase Approvals, Preliminary Design, Offering Expenses Equity Required to Secure Construction Financing Construction Of Phase 1

11 Private Equity Investors Equity (Trust Units/LP Units/Shares) Preferred Return plus Profit Participation Paid from Lot Sales after Debt Servicing 3-4 years to Return of Capital 4-8 years for Preferred Return and Profit Participation Typical Obligation to Investors First All profits from the project are used to return the original investment (ROC) Second All profits from the project are used to give a preferred return to the investor (8%-10%) Third -All remaining profit is split with the Developer (typically 50:50) Construction Financing from a Bank or Alternative Lender Modelled returns to the investor of 20-30% Internal Rate of Return (IRR). Private Equity Investors Short Term Seed Capital (Private Investors) Time Land Purchase Approvals, Preliminary Design, Offering Expenses Equity Required to Secure Constructio n Financing Constructio n Of Phase 1

12 Construction Financing Debt Instrument (Loan) Secured against the Land (first position) Last money in First money out Draws Made on Submission & Verification of Construction Invoices (actual work complete) month term (per phase) Construction Financing from a Bank or Alternative Lender 4% to 12% Annual Interest paid monthly (on Outstanding Balance) Principal is paid back out of Lot Sales (85-90% of Sale) Private Equity Investors Short Term Seed Capital (Private Investors) Time Land Purchase Approvals, Preliminary Design, Offering Expenses Equity Required to Secure Constructio n Financing Constructio n Of Phase 1

13 Letter of Credit Letter of Credit or Guarantee In place for each phase of construction 2% to 6% Annual Interest -paid monthly (on LOC amount) Only used in event of default by the Developer (allows construction to be completed) Often put up by bank providing Construction Financing Construction Financing from a Bank or Alternative Lender Letter of Credit from a Bank or Alternative Lender Private Equity Investors Time Short Term Seed Capital (Private Investors) Land Purchase Approvals, Preliminary Design, Offering Expenses Equity Required to Secure Constructio n Financing Constructio n Of Phase 1 Letter of Credit Required by Municipality in Order to Proceed With Construction

14 Project in Strathmore, AB (25 minute drive to Calgary) Lakewood Meadows 145 Acres Total Funding Required (Phase 2): $15M Phase 1 over 50% Sold

15 Projects in Lyalta, AB (15 minute drive to Calgary) The Lakes of Muirfield 200 Acres Total Funding Required: $25M The Homesteads 624 Acres Total Funding Required: $20M

16 Project on Twin Valley Reservoir, AB (60 minute drive to Calgary) Twin Valley Waterfront Community 555 Acres Total Funding Required: $20M plus $10M Letter of Credit

17 Thank you! Skyscape Capital Inc. 202, Street SE Calgary, Alberta T2B 3R3 CANADA P: (587) F: (587)