1 Disclaimer The information contained herein is proprietary and - - PowerPoint PPT Presentation

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Disclaimer

The information contained herein is proprietary and strictly confidential. It is intended to be reviewed

• nly by the party receiving it from InvestPlus ● (the “Company”) and should not be made available to

any other person or entity without the written consent of the Company. The material contained herein is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy the securities. An offer can only be made by the Offering Memorandum and the appropriate exemption documents being provided to prospective purchasers. This information is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investments described herein. Prospective purchasers should read the Offering Memorandum before considering investment in this project. This material is in no way a complete description of the proposed investment and is in all respects subject to the provisions of the Offering Memorandum and the Declaration of Trust . The information contained herein is not to be relied upon; investors should rely on the information described in the Offering Memorandum. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, expressed or implied, may be made as to the accuracy or reliability of the information contained herein. The only representations and warranties made by the Company would be those contained in an Offering Memorandum and a definitive subscription agreement. The InvestPlus Real Estate Investment Trust. intends to make regular distributions of its available cash to Unitholder, such distributions may be reduced or suspended and are not guaranteed. These offerings may be subject to potential risks associated with the investment, including market, liquidity and investment return risk. Please consult the offering documents for further information regarding these potential risks. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remain the same even if the value of the securities purchased declines. In order to be eligible for subscription in this Offering, individuals must satisfy the criteria required for investors as described in the Offering Memorandum.

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Profile

• InvestPlus Real Estate Investment Trust (IP REIT) is a private real

estate investment fund

• Based in Calgary, Alberta
• Provides an opportunity to invest in a diversified portfolio of

multi-unit residential apartment and commercial buildings in western Canada

• Existing portfolio appraised $33,8mm comprised of 217 rental

units and 18,831 square-feet of commercial space

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History

• Incorporated in 2004
• Acquired four properties through Joint Ventures - 2004 to 2008
• Acquired eleven properties through four syndicated Limited

Partnerships – 2008 to 2014

• Divested of six properties 2010 to 2014
• Restructured into private InvestPlus REIT (IPR) with $39,6 mm

assets in 2015

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InvestPlus REIT Portfolio

Calgary (2 properties) Edmonton (6 properties) Prince George (1 property ) 5

Objectives

• Provide investors with stable quarterly distributions and generating

per unit growth rate superior to industry averages

• Grow and maintain a conservative, diversified portfolio of income-

producing multi-unit residential apartments and commercial assets in western Canada

• Maximize unit holder value through active internal asset and property

management

• Leverage management’s network of building owners and sellers and

its experience in driving under-performing portfolios.

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5 Reasons to Invest into a REIT

1. REITs offer diversification and a level of stability, without sacrificing growth potential. 2. REITs provide exposure to real estate – real assets with tangible value and reliable income streams 3. REITs are distinct in their combination of relatively steady income, capital gains potential and tax benefits 4. Typically, REITs provide more attractive yields than other income investments. 5. REITs are subject to more stringent regulations in areas such as leverage and financial reporting, providing investors with an added layer of security.

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Private vs Public

• A

Private REIT is not listed

• n

a stock exchange.

• Private

REITs are not liquid, however, redemptions and subscriptions are based upon the value of the underlying real estate and not a traded market price which may be substantially different than the value of the underlying real estate.

• InvestPlus REIT as a private REIT isn´t exposed

to the extreme volatility of the stock market.

• InvestPlus

REIT can

• nly

be bought by Qualified Investors via Offering Memorandum

• r accredited investors only in Quebec.

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• A Public REIT is listed on a stock exchange
• A Public REIT, while liquid, can be volatile.

Traded stock investors can push values up or down and to extremes very quickly because of liquidity and that becomes the new price, regardless of the underlying asset value.

• Public REIT’s have additional costs compare

to a private REIT that are paid by the REIT, which reduces returns to investors in a Public REIT

• Public REITs can be invested by

anyone

Differences

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 Most private REITs operate the same as Public REIT’s  InvestPlus REIT, like a Public REIT’s has independent auditors  InvestPlus REIT, like most Public REIT’s is a unitholder democracy (i.e.

• ne unit one vote)

 Both Public and Private REIT's have Boards of Trustees  Both Public and Private REIT's are subject to securities regulations and governance although the statutory requirements imposed on each may be different

Private vs Public

Similarities

5 Reasons to Invest in Western Canada

1. British Columbia expects to lead the provinces with economic growth of 2.4 per cent this year .

• Globe & Mail February 16,2016

2. Manitoba is expected to have the second-fastest growing economy in the country in 2016, then follow that up with an even stronger 2017, according to the Conference Board of Canada. 3. Not since 2008/2009 have the current market conditions in Alberta provided an

• pportunity

to purchase apartment and commercial buildings at discounted purchase prices. 4. Large millennial generation (1/3 of population) are choosing to rent vs buying. 5. In some circumstances new or newer purpose-built apartment buildings are selling below replacement cost.

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Target and acquire accretive multi-unit residential apartments and commercial properties in growing suburban and urban markets in western Canada at superior cap rates.

Strategy

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Strategy

Multi-unit Residential Apartments

• Target and acquire multi-unit residential apartment buildings that
• perate with attractive margins and cap rates as a result of:
• No repair or maintenance of underground parking garage
• Lower utility cost resulting from elimination of heating of underground parking garages
• Lower property taxes in suburban markets
• Cluster assets to provide for better efficiencies, less man power and

commanding rental position

• Maximize efficiencies through internal asset and property

management and advanced retention strategies

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Strategy

Commercial Buildings

• Target commercial buildings

in urban and suburban markets with a history

• f

high

• ccupancy and low tenant turnover
• Target lease-back-term buildings with triple net

leases and higher quality tenants

• Stagger term of leases
• Leverage management’s network of building
• wner and sellers

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The York

Case Study

Building was under-managed and tenant profile did not fit the area Rents were significantly below market Purchase (Oct 2011): $6.8M Annual NOI: $263,460 Building was refinanced in 2014 on favorable terms Renovated and repositioned the building to suit a higher paying tenant. Upgrading cost: $1.2M Upgrading timeline: 18 months Value Q2 2016: $9.2M 35.2% Annual NOI:* $464,350 76.3%

*Based on YTD NOI as of Aug 31, 2016. and normalised to December 31, 2016

The York – 45 Suites Calgary, Alberta

At Acquisition After Normalization

Beaumont

Case Study

Beaumont Manor – 21 Suites Edmonton, Alberta 15

At Acquisition After Normalization

Building was purchased during the credit crisis ($35/bpd oil) Rents were significantly below market Purchase (March 2009): $1.51M Annual NOI: $104,220 Upgrading cost: $300,000 Upgrading timeline: 8 months Total Invested: $600,000 Renovated the building and refinanced in October 2009 and pulled out $320,000 in equity Value Oct 2009: $2,01M 17% Annual NOI: $133,920 28% Refinanced Oct 2009: $1,700,000 Equity take out: $ 300,000 Sold Jan 2014: $2,394,000

RECENT ACTIVITIES

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• Acquisition of commercial building in Prince

George

• Sale of Centre Court building (55 suites)

PG Acquisition

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• Commercial Building (13,704 sq-ft)
• Purchase Value

$2,800,000

• Purchase Cap Rate

8.6%

• 10 –year lease, Strong Covenant – ReMax Prince George
• Locked in Mortgage for $2,000,000 at 4% for 10 years
• Triple-Net

Lease: The tenant is financially responsible for management, operations and capital improvements over the entire lease term.

• Accretive - Portfolio is estimated to have an average of free cash

flow of $20,000/year after distributions debt, expenses and debt repayment based on current rents

Centre Court Sale

• 55 suite building in Edmonton
• Sold April 2016:

$6,885,000

• Cap Rate:

5.2%

• Purchased in Aug 2009: $5,200,000

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The Team

Domenic Mandato Founder, CEO Alan Vaughan

• VP. Acquisitions

Mark Deller

• VP. Finance

Leslie Toth

• VP. Sales & Marketing

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Corporate Governance

Donald R Leitch

Chairman of the Board & Independent Trustee

Richard G Carl

Independent Trustee

Ronald P. Gratton, CPA

Independent Trustee & Chair of Audit Committee

Domenic S. Mandato

Trustee

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Trustees governing the operations of the REIT, overseeing key decisions such as, acquisitions and dispositions, the assumption or granting of mortgages and the granting of options under an

• ption plan.

The Offering

Issuer:

InvestPlus REIT Structure: Mutual Fund Trust Securities Offered: Class A, B & F Trust units Offering: $10,000,000 Offering Bases: Available by Offering Memorandum in compliance with NI 45-106 Issue Price: $ 8.50 per unit Minimum Investment: $ 5,000 Tax deferred Plans: RRSP, RESP, RRIF, LIRA & TFSA Management Fees: Up to:1% Admin fee and 0.3% acquisition fee

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The Offering (cont.)

Distributions: Quarterly cash Distributions Class A: $0.1375 per unit ($0.55 / year) Class B: $0.1250 per unit ($0.50 / year) Class F: $0.1375 per unit ($0.55 / year) Capital Appreciation: The growth of the unit values are tied to the value of all assets owned by the

• REIT. There is a potential for appreciation.

DRIP: Distribution Reinvestment Plan available for all Classes and it earns an additional 3% bonus on distributions Liquidity: Quarterly Redemptions*

* Redemption Fees: Yr1=8%, Yr2=6%, Yr3=4%, Yr4=0%

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InvestPlus REIT Advantage

Favorable Timing

Low interest rates, attractive cap rates and anticipated economic up-turn in core target markets

Diversified Portfolio

Targeting 60% multi-unit residential apartment and 40 % commercial

Existing Asset Base

REIT has an asset base of $33,8mm that are being managed by the InvestPlus Management Group Inc.

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InvestPlus REIT Advantage

Solid Track Record

15-year track record and 75 years of cumulative management experience

Stable Distributions Depending on sales charges, the annual distributions are in the range of: 5.52%-6.47% Geographical Focus

Focused on western Canada

Corporate Governance

Experienced management team and Independent Board of Trustees.

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Thank You

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InvestPlus REIT

Suite 404 9215th Ave SW Calgary, AB, T2P 0N9 Office: 1.877.663.8772 Fax: 403.663.8773 Web: www.investplusreit.com

Leslie Toth

Direct: 1.855.537.8684 Email: ltoth@investpluspreit.com

For Further Information, Please contact:

APPENDIX

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Additional Information

InvestPlus REIT: An unincorporated

• pen-end

investment trust created by declaration of a trust made as of August 2015. It is a mutual fund trust. Legal Advisors: Dentons Auditor: Grant Thornton LLP Legal Entity: InvestPlus Real Estate Investment Trust Property Manager: InvestPlus Management Group Inc. Fund Manager: Qwest Investment Fund Management Ltd

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Biographies of the Team & Trustees

Domenic Mandato – President and CEO & Trustee

• B.Sc Mechanical Engineering, Concordia University, 1995
• Started real estate acquisitions in 1999 purchasing homes, duplexes & triplex’s in BC, AB,

ON & QC

• Transacted over 420 multi-unit residential apartments worth $50M
• Managed eleven corporations and four Limited Partnerships associated with the above

mentioned transactions

• Featured in the Best Seller’s “51 Success Stories

from Canadian Real Estate Investors”

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Alan Vaughan – Vice President, Acquisitions

• Bach. Landscape & Architecture, University of Guelph, 1972
• Acquired, built, developed or sold more than 155 multifamily rental, commercial

properties as VP Acquisitions for Northern Property REIT (NPR) 2002 - 2012

• Aggregate value of transactions was more than $750MM of income producing

product

• Prior to NPR, Alan held various senior management positions with the Government of

Northwest Territories, Department of Economic Development and Tourism 1979-1992

• Helped found and manage Artic Financial Services Ltd on behalf of Pacific Western

Trust to build a high-quality-loan portfolio focussing on government, government agencies and CMHC insured loans 1996-1998

Biographies of the Team & Trustees

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Leslie Toth – Vice President, Sales & Marketing

• B.Sc Electrical Engineering, Obuda University-Budapest, 1986
• Member of the National Exempt Market Association (NEMA)
• Holds an Exempt Securities License (IFSC) and Life Insurance License (LLQP)
• Managing Partner and Private Equity specialist at the Lugen Family Office
• VP Business Development of the Jaymor Group, a Canadian real estate

management and development firm 2012 – 2015

• President of the Premier Financial Group 2010-2012

Mark Deller– Vice President, Finance

• MBA, McMaster University, 1998
• Certified General Accountant and Chartered Professional Accountant
• Experienced in a variety of CFO and accounting roles in hi-tech and energy companies
• Experienced in cost management and operation accounting, financial reporting

cash/capital planning and management, forecasting and budgeting and process planning and risk management

• Worked in lending capital with GE Capital and Macquarie bank and sourcing equity

based capital via institutional and high net worth investors

Biographies of the Team & Trustees

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Donald Leitch, Q.C. – Chairman of the Board & Trustee

Don Leitch is the Managing Partner of the Calgary office of Dentons Canada LLP, a global law firm, and is a member of the National Management Committee of Dentons Canada LLP. Don is recognized in Best Lawyers in Canada 2013, 2014 and 2015. He has acted for public mutual funds, private venture capital funds and limited partnerships. Mr. Leitch has extensive securities experience and expertise in general corporate law, oil & gas law and commercial transactions and has acted as an officer and director for a number

• f private and public entities including sitting on the Governance, Compensation and Audit Committees of such entities. He is also a

former member of the Calgary Advisory Committee for the TSX Venture Exchange. Don holds a BSc degree in Chemistry, a BEd degree and his LLB.

Richard Carl – Trustee

Richard Carl is an independent businessman based in Toronto, Ontario. He is the past President and Chief Operating Officer of AGS Capital Corp., a family holding company with interests in oil and gas, metals and mining and real estate. In his capacity at AGS Capital

• Corp. he was also the Executive Chairman of Canada Fluorspar Inc. ("CFI"), a TSX-V listed mining company and the CEO and Chair of

the Management Committee of Newpsar which was CFI’s joint venture formed with Arkema Inc. to develop the Fluorspar deposits at St Lawrence, NL. Mr. Carl has extensive public and private company board experience including sitting on Compensation and Governance, Audit and Special Committees of these companies. Mr. Carl earned his Bachelor of Commerce and Finance degree from the University of Toronto and also holds a Chartered Financial Analyst designation.

Ronald Gratton – Trustee and Chair of the Audit Committee

Ron Gratton is a chartered accountant and President of Strathdale Investment Management Ltd. providing consulting services and co-investment in a number of areas. He is also an officer of McCaig Real Estate Ltd., a private real estate investment corporation. Mr. Gratton is a former tax partner with PricewaterhouseCoopers LLP in Calgary and has spent most of his career maximizing wealth for individual and corporate clients. Mr. Gratton earned his Bachelor of Commerce degree from the University of Calgary. Mr. Gratton also serves as the Chair of the Audit Committee.

InvestPlus REIT Apartments

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InvestPlus REIT Commercial

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