Investor Update Summer 2013 Everest Real Estate Fund Update Building Real Wealth │T: 780.485.5904 │ F: 780.485.6613 │ TD Tower, Suite #1001 │ 10088 - 102 Avenue │ Edmonton, AB @Acheson Corner │ facebook.com/AchesonCorner www.everestgroup.ca│ Dear Valued Investor, Out of curiosity, I opened up Google today and typed in “Canadian Real Estate Investments”. The result? More than 217 million hits in a third of a second. I was bombarded with investment clubs, REITs, investment certificates, mortgage offers, articles, advice, and more advice. There is a lot of choice out there, and a lot of competition for real estate investment dollars. Looking at the pages and pages of real estate investment offerings, I was humbled reflecting on the trust and confidence placed in the Everest Real Estate Fund by you, the investor. I am a big fan of the free market - it forces companies like ours to ensure that we are constantly delighting our investors - which benefits you, and keeps us competitive. I believe in total investor satisfaction - in addition to above-average rates of return, we work hard to ensure that we keep our investors happy. We do this through regular communication, updates, and transparency. We have added new features to our Everest Real Estate Fund website www.everestrealestatefund.ca - I encourage each one of you to visit the site. 217 million hits. That’s a lot. I know you have a lot of choice. I promise to work hard to ensure that you continue to choose the Everest Real Estate Fund. Kind regards, Zafir Rashid CEO Everest Group of Companies Everest Real Estate Fund By the Numbers 100% of Everest REF investors are Canadian 87% of Everest REF investors invested with registered Funds (RRSP, TFSA, etc) 65% of Everest REF assets are in residential real estate 35% of Everest REF assets are in commercial real estate 0% of Everest REF assets are in default Zero missed interest payments to investors
Transcript
Investor UpdateSummer 2013
Everest Real Estate Fund Update
Building Real Wealth │T: 780.485.5904 │ F: 780.485.6613 │ TD Tower, Suite #1001 │ 10088 - 102 Avenue │ Edmonton, AB
Out of curiosity, I opened up Google today and typed in “Canadian Real Estate Investments”. The result? More than 217 million hits in a third of a second. I was bombarded with investment clubs, REITs, investment certificates, mortgage offers, articles, advice, and more advice.
There is a lot of choice out there, and a lot of competition for real estate investment dollars. Looking at the pages and pages of real estate investment offerings, I was humbled reflecting on the trust and confidence placed in the Everest Real Estate Fund by you, the investor.
I am a big fan of the free market - it forces companies like ours to ensure that we are constantly delighting our investors - which benefits you, and keeps us competitive. I believe in total investor satisfaction - in addition to above-average rates of return, we work hard to ensure that we keep our investors happy. We do this through regular communication, updates, and transparency. We have added new features to our Everest Real Estate Fund website www.everestrealestatefund.ca - I encourage each one of you to visit the site.
217 million hits. That’s a lot. I know you have a lot of choice. I promise to work hard to ensure that you continue to choose the Everest Real Estate Fund.
Kind regards,
Zafir RashidCEOEverest Group of Companies
Everest Real Estate Fund
By the Numbers
100% of Everest REF investors are Canadian
87% of Everest REF investors invested with registered Funds (RRSP, TFSA, etc)
65% of Everest REF assets are in residential real estate
35% of Everest REF assets are in commercial real estate
0% of Everest REF assets are in default
Zero missed interest payments to investors
Building Real Wealth │T: 780.485.5904 │ F: 780.485.6613 │ TD Tower, Suite #1001 │ 10088 - 102 Avenue │ Edmonton, AB
The inflow of inter-provincial migration into Alberta is having a positive effect on much of the economy. One of the most noticeable has been on the increased demand for new housing—and builders are busy keeping up.
In June, developers got started on 38,709 new homes in our province. This figure is annualized, which suggests the total number of houses that would be built in a year if this pace of building keeps up for 12 months. It is also adjusted to account for seasonal variation in home building.
The June figure is a bit of a dip from May, but it is still about 14.6 per cent higher than June of last year. It’s also about 40.9 per cent higher than the five-year average annualized rate of 27,400 new homes.
Housing starts are an extremely important economic indicator. Not only does it point to the growing level of consumer confidence in the province, it also bodes well for construction jobs in the coming months.
There is also a good deal of peripheral retail activity around a new home such as new appliances, flooring and furniture.
One worry is that too much building could result in an oversupply of unsold homes on the market, especially if developers are building a good number of homes on speculation (or “spec” houses). That was a problem in 2008 when residential prices dropped. How ever, demand for homes in 2013 appears to be keeping pace with the new supply — at least for now.
Source:
ALBERTA HOME BUILDERS ARE BUSY
Investor UpdateSummer 2013
Building Real Wealth │T: 780.485.5904 │ F: 780.485.6613 │ TD Tower, Suite #1001 │ 10088 - 102 Avenue │ Edmonton, AB
3
Bulldozers, backhoes and building sites are familiar scenes to most Albertans, and they seem to be here to stay. Between April and June of this year, construction activity around the province kept up a solid pace.
The value of non-residential construction in the second quarter of this year clocked in at $2.46 billion, fractionally lower than the first quarter but a small percentage higher (+0.7 per cent) than the same quarter of last year.
Commercial projects such as shopping malls and office towers were the only category of non-residential construction that actually slipped in the second quarter. They edged lower by $33 million (-1.9 per cent) from the first quarter. This could be due to some very large projects, such as Calgary’s Bow office tower, winding down construction in the spring.
The other two categories of non-residential building moved slightly higher. Industrial projects (which include things like refineries and manufacturing facilities) inched ahead by $4 million. Institutional and government construction projects advanced by a similar amount.
The June flooding in southern Alberta is unlikely to have any major impact on these figures in the third quarter (which runs from July to the end ofSeptember). While there will be millions spent on reconstruction of residential properties, there was less damage done to non-residential properties—and most of this spending will be on clean up and repair of businesses or buildings, not construction. The exception could be a lift in government projects, such as rebuilding roads, bridges and municipal transportation.
Building Real Wealth │T: 780.485.5904 │ F: 780.485.6613 │ TD Tower, Suite #1001 │ 10088 - 102 Avenue │ Edmonton, AB
Don’t worry - the Springbank homes are high and dry. With all of the heartbreaking images of flooding in Calgary and Southern Alberta, we wanted to assure our investors that the Windhorse Manor estates are on high ground and were not affected by the flooding.
We are building 3 show homes: 1 home is complete with an occupancy permit; 1 is at 90% complete; and the other one is at 50%.There are a total of 55 lots in the Windhorse Manor site, we have sold approximately half and 3 or 4 lot sales are pending. Sales have been increasing and we expect this trend to continue.
On June 26, 2013, Everest Group held a groundbreaking ceremony and luncheon to officially launch the next phase of the Acheson Commercial Corner development. Photos, video, and other information from the launch can be found on the Acheson Commercial Corner website, www.AchesonCorner.com.
The next phase of the development includes deep well site servicing, with construction to commence in Fall 2013. There is still room to invest in this project directly, and it is eligible for registered funds. For more information please contact John Lorenz, VP Business Development, or your Everest agent.
ACHESON COMMERCIAL CORNER UPDATE
4
WINDHORSE MANOR - SPRINGBANK, AB UPDATE
Everest Real Estate Fund Asset UpdateThe Everest REF pools investor capital and loans it out in the form of mortgages. The two main projects that your funds are invested in are Windhorse Manor Country Estates and Acheson Commercial Corner.
We’re ListeningEverest is committed to putting Investors First and your feedback helps us improve and enhance the investor experience. Please contact John Lorenz, VP Business Development, at [email protected] or 780.920.3181; or Zack Siezmagraff, Director of Sales & Marketing at [email protected] or 780.485.5904.
This Investor Update does not constitute an offer to sell or a solicitation of any investment product, which can only be made via an Offering Memorandum (“OM”). Each potential investor should read the OM in its entirety and carefully consider the risks and disclosures set out therein before making an investment decision. Past performance does not
guarantee future results. Everest Development Group is a related party to Everest Real Estate Fund Inc. E.&O.E.
