+ All Categories
Home > Documents > Tandem Assets LP

Tandem Assets LP

Date post: 08-Mar-2016
Category:
Upload: websitesca
View: 230 times
Download: 1 times
Share this document with a friend
Description:
Investment in Commercial Real Estate
Popular Tags:
9
INVESTORS FIRST
Transcript
Page 1: Tandem Assets LP

Management of Tandem Assets has over 60 years of combined

experience. Members of the management team own over 500,000 sq. ft. of commercial

real estate and are personally invested in every offering

brought forth. Each member of the team offers unique traits and

skill sets. Utilizing this collective knowledge, the management

team is able to source key opportunities within the North

American marketplace.

The portfolio of real estate properties may include:

multiplexes, apartment buildings, mixed use commercial/residential buildings and

undeveloped parcels of land located in municipal centres

within North America. The current focus is Western Canada and South Western United States

where can be found some of today’s greatest, stable

growth potential.

THIS IS NOT A SOLICITATION TO SELL SECURITIES. THIS ADVERTISEMENT IS QUALIFIED BY THE INFORMATION CONTAINED IN THE APPLICABLE OFFERING

MEMORANDUM OF TANDEM ASSETS 1 LP. THERE ARE RISKS ASSOCIATED WITH THIS INVESTMENT. ACTUAL RESULTS MAY VARY SIGNIFICANTLY FROM PROJECTED RESULTS.

CONSULT YOUR OWN TAX AND INVESTMENT ADVISORS.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

I N V E S T O R S F I R S T

I N V E S T O R S F I R S T

www.TandemAssets.com

Page 2: Tandem Assets LP

K E V I N Z I O L K O S K I D I R E C T O R & C H I E F E X E C U T I V E O F F I C E R

From overseeing $345M worth of contractual spending, or raising over several million dollars in capital for private real estate opportunities across North America, Mr. Ziolkoski understands money and how it can best be used. In 2010, Mr. Ziolkoski became a managing partner of Blueprint Global Partners.

M A R C I N D R O Z D Z P R E S I D E N T

Mr. Drozdz is a consistent top performer in the Exempt Market space and a respected advocate for investor and advisor education in the field of Alternative Investments. He is a Mentor, a Board Member with CREIC (Canada Real Estate Investors Club), a Director and a Board member with the National Exempt Market Association (NEMA) and is also the Chief Strategic Officer for Blueprint Global Partners.

S T E V E F R O E S E D I R E C T O R & V I C E - P R E S I D E N T , A C Q U I S I T I O N S

Mr. Froese has over 20 years of experience in residential and commercial real estate. He is a co-founder and partner in Alta Pacific Mortgage Investment Corp., a company that administers a $25M mortgage portfolio, and Dominion Properties; a company that owns and manages a real estate portfolio of over 500,000 sq. ft. of mixed retail and office space.

R O Y W I E B E V I C E - P R E S I D E N T , O P E R A T I O N S

Mr. Wiebe has extensive experience in development and management, along with owning and co-owning of commercial and residential real estate in Western Canada and the United States. He has successfully built and exited several multimillion dollar businesses ranging from agriculture to the oil service industry making him a key resource in evaluating market potential.

B R A D U N R A U V I C E - P R E S I D E N T , B U S I N E S S D E V E L O P M E N T

Mr. Unrau has been a CREA® licensed Realtor® in British Columbia since 1994. He is also a licensed mortgage broker and can be found among the top 2% of licensed mortgage brokers in Dominion Lending Centres. His extensive experience in the acquisition, financing and management of residential and commercial real estate in British Columbia and Alberta guides him towards seeking new opportunities.

M A N A G E M E N T T E A M

O U R B U S I N E S STandem Assets 1 LP was created to provide Canadians with the opportunity to participate in the time tested investment of commercial real estate which has proven to be a profitable, long term investment vehicle. We focus on acquiring existing, income producing niche size assets that are too large for individuals but too small for larger players - creating less competition, better pricing, and potentially stronger returns for investors.

T H E P L A NThe Tandem Management team will focus on sourcing and purchasing properties that are undervalued and/or undermanaged in markets located in municipal centres within North America. These properties must have a sufficient asset value to allow for profitable operations over a 5 year term, show promise for potential growth and be able to provide for continued financing of additional properties in the process.

By using building blocks of proper research, due diligence, and professional management, a superior real estate investment

program can be developed.

Capitalizing on over 60 years of combined real estate investment experience provides the Tandem Management team

with the foresight needed to evaluate and determine the next offering.

K E Y F A C T O R S

• Mismanaged, undervalued or underutilized

• Potential to increase in current value, and improve in marketability

• Alignment with current market trends for refinancing

• Foreseeable future value

The Tandem Management team have proven through past transactions that with proper management, a property investment can increase in value. Incorporating a series of systematic techniques in the right measure have been the backbone to success. • Repositioning in the marketplace• Capital improvements• Re-negotiating leases• Restructuring

& Refinancing• Strategic renovations• Re-branding• Change of use• Re-leasing

The founders of

Tandem Assets 1 LP

collectively have

over 60 years

of combined

experience,

catalyzing

well over

$100M dollars

in real estate

transactions,

developments,

financings, and

best use

restorations.

INVESTMENT P H I L O S O P H Y

Capital Preservation• Through Acquisition Of

Existing Income Producing Assets in Resilient Markets

Defined Terms• Fixed Monthly Income• Fixed Time Frame

Alignment• Investors Are Paid First• Upon Exit Investors Are

First To Receive Return Of Capital

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

Page 3: Tandem Assets LP

FOLD PANEL PAGE 1

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS

43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

• Income was $750K upon purchase (April 2011)

• Very poorly managed

• Major repairs required (HVAC, Roof, Electrical)

• Income as of April 2012 $1.5M

83 UNIT SUITE EDMONTON, ALBERTA

• $12M purchase price in summer of 2010

• Building was in need of minor renovations

• Sold units through individual strata title

• $2M profit was obtained

THUNDERBIRD MOBILE HOME PARKSIERRA VISTA, AZ

• Acquired for $2.2M • Property is currently

generating over 9% income (9% capitalization rate)

• Long term tenants, low maintenance and limited vacancies

• Mobile homes act as direct collateral

THE ABOVE CITED TRACK RECORD OF PAST PROJECTS ARE FOR ILLUSTRATIVE PURPOSES AND ARE ONLY INTENDED TO SHOW SOME PAST PERFORMANCES OF MANAGEMENT ON SIMILAR ASSETS. THESE PROPERTIES ARE NOT PART OF THE TANDEM ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO GUARANTEE THAT PAST PERFORMANCES WILL BE REPLICATED.

MOVING IN TANDEMWITH INVESTORS

I N V E S T O R S F I R S TInvestors are paid first throughout the whole term of the offering. Investors are also first

to receive 100% of their capital back upon exit.

T R U E A L I G N M E N TManagement compensation is heavily based on success

of investors.

M A N A G E M E N T M O N E Y F I R S T I N , L A S T O U T

In addition to managing the partnership, the Tandem

Management team will also be investing in the same ownership

structure (Class A Units) as investors. Although management will hold

identical shares to investors, they will not exit until all the

investors exit first.

WHERE DO YOU WANT TO INVEST?

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

“Tandem Assets 1 LP expects to ultimately hold a $25-30m dollar

portfolio of income producing real estate

assets for a select few investors. This is an ideal size for an offering as it

allows management to focus closely on

the assets it has under management

and be flexible enough to acquire, sell or reposition

assets in a changing marketplace.”

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

M O N T H L Y I N C O M EAcquire assets that are currently returning 8-9% per annum in income

M A R K E T A P P R E C I A T I O NThrough diligent management

and proven market appreciation, niche commercial assets often

increase 5-7% per annum

M O R T G A G E P A Y D O W NEach month significant dollars are contributed to reduce the

principal of the mortgage

3 M A J O R P R O F I T C E N T R E S

Despite predictions a year ago that CPPIB would slow its deal-making pace,

“quite the opposite materialized,” CPPIB chief executive officer David Denison

told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market

turbulence drove smaller or weaker investors onto the sidelines.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED

PARTNERSHIP.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

A S S E T B A C K E DInvestors collectively own the limited partnership which owns the income

producing real estate assets.

Under $2M Over $10M

TANDEM Assets 1 LPBetween $2M-$10M

Significantly less competition for real estate assets

][Market Appreciation

Mortgage Pay Down

Monthly Income

POTE

NTIA

L PR

OFI

T

TIME HORIZONTIME HORIZON

Page 4: Tandem Assets LP

INSIDE PANELSINSIDE PANELS

:

I N V E S T O R S F I R S T

70%*

OF THE PROFITS

Monthly Cashflow5 Year TermAsset Backed

*Until a 12% annualized return is realizedthen 50% of the profits until partnership is exited.

Targeted 12%*Annualized Return

P A R T I C I P A T E I N A N A S S E T C L A S S T H A T H A S A P R O V E N H I S T O R Y

Why OMERS is changing gears from public to private market assets.

The principal reason it was done was to reduce our exposure to the volatility of the capital markets, especially public equity. The second reason was to acquire assets that would give us a predictable as possible long-term cash returns to fund the pension plan”.- Michael Nobrega,

President and CEO of OMERS (Ontario Municipal Employees Retirement System)

Better fit for the long view and relatively risk-averse tastes.

Private equity, real estate and infrastructure are a better fit for the long view and relatively risk-averse tastes of CPPIB. We believe that private equity assets can produce risk-weighted returns that will outperform public equities in the long run.” - Mark Wiseman

CEO of CPPIB(Canada Pension Plan Investment Board)

I D E N T I F Y I N G O P P O R T U N I T YDue diligence on a “micro-economic” and “macro-economic”

level are key in determining a property of interest.

Tandem Assets 1 LP understands what economic forces are driving the areas that we invest in.We need look no further than Detroit and the automotive industry as an unfortunate example of rapidly changing economic circumstances.In contrast, various cities throughout North America have clearly led the way in growth with new or renewed industry activity.

M I C R O - E C O N O M I C S

A P P R A I S A L

n Property’s worth? n How has it been assessed?

(Direct comparison, Income or Cost Approach )

Z O N I N G

n How is the property being used? n Is it the best use? n Are there limitations against future

improvements/additions?

F I N A N C I N G

n How is this property going to be purchased?

n How will lenders view this purchase?

E N V I R O N M E N T A L R E P O R T

n Are there any current environmental concerns?

n What is the history of the property?

E N G I N E E R I N G R E P O R T

n What is the condition of the existing building or buildings?

n What is the structural integrity?

S I T E S U R V E Y / R E A L P R O P E R T Y R E P O R T

n Are there any easements registered on the property?

M A C R O - E C O N O M I C S

N E T M I G R A T I O N

n Area’s population trends? n Are there more people arriving

or departing?

I N D U S T R Y

n Area’s major industries? n Who are the major employers

and how much of the job market do they represent?

n What are the future prospects for current major employers?

n What other businesses are locating/relocating in the area?

T R A N S P O R T A T I O N

n How accessible is the area? n Are there any infrastructure

expansion plans pending?

G O V E R N M E N T

n How easy/difficult is it to do business?

n How do taxes for businesses compare to other areas?

‘‘Why OMERS is changing gears from

‘‘Why OMERS is changing gears from public to private market assets. ‘‘public to private market assets.

The principal reason it was done was to ‘‘The principal reason it was done was to reduce our exposure to the volatility of ‘‘reduce our exposure to the volatility of

‘‘Better fit for the long view

‘‘Better fit for the long view and relatively risk-averse tastes. ‘‘and relatively risk-averse tastes.

Private equity, real estate and ‘‘Private equity, real estate and infrastructure are a better fit for the long ‘‘infrastructure are a better fit for the long

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

R Investors Are Paid First R Investors Receive Return

Of Capital First R Investment Is Asset

Backed R RRSP & TFSA Eligible R 5 Year Term R $10,000 Minimum

R I S K M I T I G A T I O N

T R I P L E N E T L E A S E S

NNN means that tenants pay property taxes, property

management, insurance, repairs and utilities

M U L T I P L E E X I T S T R A T E G I E S

To create liquidity within the offering, management is able

to position assets for sale or refinance in a variety of ways

to maximize returns for investors

R O B U S T D U E D I L I G E N C E

100’s of hours are invested in researching each asset to ensure the acquisition is a fit

for the portfolio

M U L T I P L E T E N A N T S

This ensures assets to consistently perform

regardless if fluctuations in vacancy levels occur

E X P E R I E N C E D M A N A G E M E N T T E A M

• Over 60 Years of Combined Experience• Over $100M Dollars in Real Estate Transactions• Proven Management

Track Record

E X I S T I N G I N C O M E P R O D U C T I O N

Assets purchased have strong existing income substantially

reducing risk

S I Z E O F O F F E R I N G

As the assets under management will likely not

exceed $30M, management can move much faster to

capitalize on opportunities or liquidate a position to

reduce risk while maintaining operational size efficiencies

of larger offerings

B U S I N E S S P L A N

12

3

4

Acquire Performing Niche Sized AssetsYear 1 Implement Value

Creation Process Years 1-3

Monetize & Maximize Assets Throughout Term

Liquidation & Exit

Years 4-5

A S S E T M I X

V A L U E I M P L E M E N T A T I O N P R O C E S SWhen assessing a potential property for purchase, our management team looks for ways to add value to the acquisition. Some of the most common value adds include:

• Repositioning In The Marketplace

• Capital Improvements

• Re-Negotiating Leases

• Restructuring & Refinancing

• Finding Efficiencies And Reducing Expenses

• Strategic Renovations

• Re-Branding• Change Of Use• Re-Leasing

Tandem appraises the asset to determine its current value, and evaluates where it could be in the future.

Page 5: Tandem Assets LP

FOLD PANEL PAGE 1

T H E S T O C K M A R K E T H A S R E A L L Y T H R O W N E V E R Y O N E F O R A L O O P

E N T H U S I A S M W I T H O U T A D O U B T S P I R A L E D D O W N W A R D A G A I N

D E C L I N E R S E D G E D D E V A L U E

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R N

L O W E R V A L U E F F F F D D F F F D D F D F D F M U T U A L F U N D S

M I S S E D A G A I N T H A N E X P E C T E D W E A K E R S T O C K M A R K E T D O W N

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R N

L O S D K D K D K D I K G C C C C C C K D K D K D V O L I T I L E M A R K E T

D F D F D F D F D F D F D F D D F D F D R O P P E D A G A I N

F D F D F F D F F F F F F F F F F F F D D F F D F D D F L O W E R R E T U R N S

L O S T D D K D D K D K D K D K D K D K D K D K D K M I S S E D Q U A R T E R

L O W E R V A L U E F F F F D D F F F D D F D F D F M U T U A L F U N D S

V V V V V V V V V B B R

M I S S E D A G A I N T H A N E X P E C T E D W E A K E R S T O C K M A R K E T D O W N

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R N

L O W E R V A L U E F F F F D D F F F D D F D F D F M U T U A L F U N D S

L O S D K D K D K D I K G C C C C C C K D K D K D V O L I T I L E M A R K E T

D F D F D F D F D F D F D F D D F D F D R O P P E D A G A I N

F D F D F F D F F F F F F F F F F F F D D F F D F D D F L O W E R R E T U R N S

L O S T D D K D D K D K D K D K D K D K D K D K D K M I S S E D Q U A R T E R

V V V V V V V V V B B R

M I S S E D A G A I N T H A N E X P E C T E D W E A K E R S T O C K M A R K E T D O W N

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

E N T H U S I A S M W I T H O U T A D O U B T S P I R A L E D D O W N W A R D A G A I N

D E C L I N E R S E D G E D D E V A L U E

L O W E R E X P E C T A T I O N S A G A I N B R I N G A N O W I N S I T S H Y

F A L L S H Y O N C E A G A I N W I T H N O W W I N I N O U T R A S H O R T

M I N D

A T E

D E B T

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R NS E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R NCPP posts 6.6 per cent annual return

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R NS E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R N

E N T H U S I A S M W I T H O U T A D O U B T S P I R A L E D D O W N W A R D A G A I N

D E C L I N E R S E D G E D D E V A L U E

L O W E R E X P E C T A T I O N S A G A I N B R I N G A N O W I N S I T S H Y

F A L L S H Y O N C E A G A I N W I T H N O W W I N I N O U T R A S H O R T

M I N D

A T E

D E B T

S E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R Nposts 6.6 per cent annual returnS E L L H O W L O N G C A N T H E C O N T I N U E D D O W N T U R N

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

H E D G E L O W E R E O U T O F T H E E N D O F T H E O W R K D D I S L D L T O S L S E L L

industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

M I S S E D M I S S E D To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its custome

to pay the price of “embedded compensation” just so long as they don’t see separate itemiz

and buggy at the dawn of the automobile era.

H E D G E L O W E R E O U T O F T H E E N D O F T H E O W R K D D I S L D L T O S L S E L L

High mutual fund fees charged by companies like Investors Group are once

To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

�nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS

43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

• Income was $750K upon purchase (April 2011)

• Very poorly managed

• Major repairs required (HVAC, Roof, Electrical)

• Income as of April 2012 $1.5M

83 UNIT SUITE EDMONTON, ALBERTA

• $12M purchase price in summer of 2010

• Building was in need of minor renovations

• Sold units through individual strata title

• $2M profit was obtained

THUNDERBIRD MOBILE HOME PARKSIERRA VISTA, AZ

• Acquired for $2.2M • Property is currently

generating over 9% income (9% capitalization rate)

• Long term tenants, low maintenance and limited vacancies

• Mobile homes act as direct collateral

THE ABOVE CITED TRACK RECORD OF PAST PROJECTS ARE FOR ILLUSTRATIVE PURPOSES AND ARE ONLY INTENDED TO SHOW SOME PAST PERFORMANCES OF MANAGEMENT ON SIMILAR ASSETS. THESE PROPERTIES ARE NOT PART OF THE TANDEM ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO GUARANTEE THAT PAST PERFORMANCES WILL BE REPLICATED.

MOVING IN TANDEMWITH INVESTORS

I N V E S T O R S F I R S TInvestors are paid first throughout the whole term of the offering. Investors are also first

to receive 100% of their capital back upon exit.

T R U E A L I G N M E N TManagement compensation is heavily based on success

of investors.

M A N A G E M E N T M O N E Y F I R S T I N , L A S T O U T

In addition to managing the partnership, the Tandem

Management team will also be investing in the same ownership

structure (Class A Units) as investors. Although management will hold

identical shares to investors, they will not exit until all the

investors exit first.

WHERE DO YOU WANT TO INVEST?

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

“Tandem Assets 1 LP expects to ultimately hold a $25-30m dollar

portfolio of income producing real estate

assets for a select few investors. This is an ideal size for an offering as it

allows management to focus closely on

the assets it has under management

and be flexible enough to acquire, sell or reposition

assets in a changing marketplace.”

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

M O N T H L Y I N C O M EAcquire assets that are currently returning 8-9% per annum in income

M A R K E T A P P R E C I A T I O NThrough diligent management

and proven market appreciation, niche commercial assets often

increase 5-7% per annum

M O R T G A G E P A Y D O W NEach month significant dollars are contributed to reduce the

principal of the mortgage

3 M A J O R P R O F I T C E N T R E S

Despite predictions a year ago that CPPIB would slow its deal-making pace,

“quite the opposite materialized,” CPPIB chief executive officer David Denison

told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market

turbulence drove smaller or weaker investors onto the sidelines.told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market

turbulence drove smaller or weaker investors onto the sidelines.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED

PARTNERSHIP.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

A S S E T B A C K E DInvestors collectively own the limited partnership which owns the income

producing real estate assets.

][Market Appreciation

Mortgage Pay Down

Monthly Income

POTE

NTIA

L PR

OFI

T

TIME HORIZONTIME HORIZON

Page 6: Tandem Assets LP

INSIDE PANELSINSIDE PANELS

:

I N V E S T O R S F I R S T

70%*

OF THE PROFITS

Monthly Cashflow5 Year TermAsset Backed

*Until a 12% annualized return is realizedthen 50% of the profits until partnership is exited.

Targeted 12%*Annualized Return

P A R T I C I P A T E I N A N A S S E T C L A S S T H A T H A S A P R O V E N H I S T O R Y

Why OMERS is changing gears from public to private market assets.

The principal reason it was done was to reduce our exposure to the volatility of the capital markets, especially public equity. The second reason was to acquire assets that would give us a predictable as possible long-term cash returns to fund the pension plan”.- Michael Nobrega,

President and CEO of OMERS (Ontario Municipal Employees Retirement System)

Better fit for the long view and relatively risk-averse tastes.

Private equity, real estate and infrastructure are a better fit for the long view and relatively risk-averse tastes of CPPIB. We believe that private equity assets can produce risk-weighted returns that will outperform public equities in the long run.” - Mark Wiseman

CEO of CPPIB(Canada Pension Plan Investment Board)

I D E N T I F Y I N G O P P O R T U N I T YDue diligence on a “micro-economic” and “macro-economic”

level are key in determining a property of interest.

Tandem Assets 1 LP understands what economic forces are driving the areas that we invest in.We need look no further than Detroit and the automotive industry as an unfortunate example of rapidly changing economic circumstances.In contrast, various cities throughout North America have clearly led the way in growth with new or renewed industry activity.

C O M M E R C I A L C E N T R E S

• Essential Services Tenants• Reputable Anchor Tenants• Longer Term Leases With

Rental Increases Established• Triple Net Leases (NNN)

S H O R T T E R M L E N D I N G

• Capitalize On Short Term Professional Lending Opportunities

• Secure The Partnership In A Mortgage Position

• Create Liquidity Within The Partnership

M I C R O - E C O N O M I C S

A P P R A I S A L

n Property’s worth? n How has it been assessed?

(Direct comparison, Income or Cost Approach )

Z O N I N G

n How is the property being used? n Is it the best use? n Are there limitations against future

improvements/additions?

F I N A N C I N G

n How is this property going to be purchased?

n How will lenders view this purchase?

E N V I R O N M E N T A L R E P O R T

n Are there any current environmental concerns?

n What is the history of the property?

E N G I N E E R I N G R E P O R T

n What is the condition of the existing building or buildings?

n What is the structural integrity?

S I T E S U R V E Y / R E A L P R O P E R T Y R E P O R T

n Are there any easements registered on the property?

M A C R O - E C O N O M I C S

N E T M I G R A T I O N

n Area’s population trends? n Are there more people arriving

or departing?

I N D U S T R Y

n Area’s major industries? n Who are the major employers

and how much of the job market do they represent?

n What are the future prospects for current major employers?

n What other businesses are locating/relocating in the area?

T R A N S P O R T A T I O N

n How accessible is the area? n Are there any infrastructure

expansion plans pending?

G O V E R N M E N T

n How easy/difficult is it to do business?

n How do taxes for businesses compare to other areas?

‘‘Why OMERS is changing gears from

‘‘Why OMERS is changing gears from public to private market assets. ‘‘public to private market assets.

The principal reason it was done was to ‘‘The principal reason it was done was to reduce our exposure to the volatility of ‘‘reduce our exposure to the volatility of

‘‘Better fit for the long view

‘‘Better fit for the long view and relatively risk-averse tastes. ‘‘and relatively risk-averse tastes.

Private equity, real estate and ‘‘Private equity, real estate and infrastructure are a better fit for the long ‘‘infrastructure are a better fit for the long

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

R Investors Are Paid First R Investors Receive Return

Of Capital First R Investment Is Asset

Backed R RRSP & TFSA Eligible R 5 Year Term R $10,000 Minimum

R I S K M I T I G A T I O N

T R I P L E N E T L E A S E S

NNN means that tenants pay property taxes, property

management, insurance, repairs and utilities

M U L T I P L E E X I T S T R A T E G I E S

To create liquidity within the offering, management is able

to position assets for sale or refinance in a variety of ways

to maximize returns for investors

R O B U S T D U E D I L I G E N C E

100’s of hours are invested in researching each asset to ensure the acquisition is a fit

for the portfolio

M U L T I P L E T E N A N T S

This ensures assets to consistently perform

regardless if fluctuations in vacancy levels occur

E X P E R I E N C E D M A N A G E M E N T T E A M

• Over 60 Years of Combined Experience• Over $100M Dollars in Real Estate Transactions• Proven Management

Track Record

E X I S T I N G I N C O M E P R O D U C T I O N

Assets purchased have strong existing income substantially

reducing risk

S I Z E O F O F F E R I N G

As the assets under management will likely not

exceed $30M, management can move much faster to

capitalize on opportunities or liquidate a position to

reduce risk while maintaining operational size efficiencies

of larger offerings

B U S I N E S S P L A N

12

3

4

Acquire Performing Niche Sized AssetsYear 1 Implement Value

Creation Process Years 1-3

Monetize & Maximize Assets Throughout Term

Liquidation & Exit

Years 4-5

A S S E T M I X

V A L U E I M P L E M E N T A T I O N P R O C E S SWhen assessing a potential property for purchase, our management team looks for ways to add value to the acquisition. Some of the most common value adds include:

• Repositioning In The Marketplace

• Capital Improvements

• Re-Negotiating Leases

• Restructuring & Refinancing

• Finding Efficiencies And Reducing Expenses

• Strategic Renovations

• Re-Branding• Change Of Use• Re-Leasing

Tandem appraises the asset to determine its current value, and evaluates where it could be in the future.

Page 7: Tandem Assets LP

FOLD PANEL PAGE 1

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

MER debate: Mutual fund industry stands its groundJonathan Chevreau Dec 6, 2011 – 6:22 PM ET | Last Updated: Dec 7, 2011 12:39 PM ETHigh mutual fund fees charged by companies like Investors Group are once

again under the microscope, but I have no fear my modest holding in the

stock of IGM Financial Inc. is in much jeopardy.Investors Group and I have exchanged views the past week, online at �nancialpost.com and in print, about how much value its clients get from

its robust management expense ratios (MERs). Many of its funds sport

MERs of 2.5% or more; even its bond funds are just shy of 2%, which in

today’s low-interest-rate environment is an outrage in itself.Even though there has been a sea change in how investors think, I have

little doubt that IGM Financial, the owner of Investors Group, has a model

that will keep minting money for shareholders — selling mutual funds

and “advice” to investors who can’t be bothered with details like MERs.There is still $773-billion invested in mutual funds, according to the Investment Funds Institute of Canada; the amount in exchange-traded

funds is barely 6% of that: $49-billion, according to the Canadian ETF Association.To put it in perspective, Investors Group alone has more assets than do the half-dozen domestic ETF players combined — $61-billion as of a

year ago, the last time IFIC broke out sales by members. If you count Mackenzie Financial Corp., Investors Group itself and other �rms owned

by IGM Financial, the total is $128-billion, or more than 2.5 times all ETF assets in the country.Frankly, I’m amazed the fund industry has stood its ground as well as it has. Whether out of ignorance or inertia, its customers seem content

to pay the price of “embedded compensation” just so long as they don’t see separate itemized bills. To me, this is like sticking with the horse

and buggy at the dawn of the automobile era.True, the media pay disproportionate attention to ETFs, despite the best e£orts of the industry to brush them aside. Last week’s Canadian

Investment Awards were lavished exclusively on high-priced actively managed funds with just one token award going to Scotia iTrade and

Claymore for Claymore’s commission-less ETF initiatives, which Scotia iTrade sells. Funny, we’ve never seen an award for “commission-less”

mutual funds!

IFIC and Investors Group extol the “value” of advice but seem to have missed a sea change in consumer attitudes to fees and the dramatic

contrast revealed by the surging ETF industry.BMO ETFs unveiled a study Monday revealing that while fewer than one in �ve know about them, the more Canadians learn about ETFs, the

more they want them. Of 1,520 adults polled by Leger Marketing, only 18% were familiar with ETFs. But once they learn about their bene�ts

— chie¨y lower investment management costs and tax e©ciency — a whopping 74% would use them.

David Chilton, author of The Wealthy Barber Returns, says more people have asked him about fees in the past six months than in the past 20

years, and it’s “ETFs that have shone a light on it.” When he tells Americans about Canadian dividend mutual funds with 2.7% MERs, “they

honestly don’t believe me. They think it’s nutty.”No matter how good an advisor is, it’s hard to overcome the drag of a 2.7% MER. Customers aren’t irate about the �rst 1%, Chilton says. They

understand �nancial advisors need to be paid. But more are balking at the extra 1.7%.Even �ve years ago, few Canadians realized how badly high MERs cut into long-term wealth creation. This lack of price sensitivity was exploited

by Canada’s fund industry, among the highest-cost fund jurisdictions in the western world, according to a study by Harvard University’s Peter

Tufano and colleagues. The industry brushed o£ this study and has shown little inclination to lower fees as a result.

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS

43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

• Income was $750K upon purchase (April 2011)

• Very poorly managed

• Major repairs required (HVAC, Roof, Electrical)

• Income as of April 2012 $1.5M

83 UNIT SUITE EDMONTON, ALBERTA

• $12M purchase price in summer of 2010

• Building was in need of minor renovations

• Sold units through individual strata title

• $2M profit was obtained

THUNDERBIRD MOBILE HOME PARKSIERRA VISTA, AZ

• Acquired for $2.2M • Property is currently

generating over 9% income (9% capitalization rate)

• Long term tenants, low maintenance and limited vacancies

• Mobile homes act as direct collateral

THE ABOVE CITED TRACK RECORD OF PAST PROJECTS ARE FOR ILLUSTRATIVE PURPOSES AND ARE ONLY INTENDED TO SHOW SOME PAST PERFORMANCES OF MANAGEMENT ON SIMILAR ASSETS. THESE PROPERTIES ARE NOT PART OF THE TANDEM ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO GUARANTEE THAT PAST PERFORMANCES WILL BE REPLICATED.

MOVING IN TANDEMWITH INVESTORS

I N V E S T O R S F I R S TInvestors are paid first throughout the whole term of the offering. Investors are also first

to receive 100% of their capital back upon exit.

T R U E A L I G N M E N TManagement compensation is heavily based on success

of investors.

M A N A G E M E N T M O N E Y F I R S T I N , L A S T O U T

In addition to managing the partnership, the Tandem

Management team will also be investing in the same ownership

structure (Class A Units) as investors. Although management will hold

identical shares to investors, they will not exit until all the

investors exit first.

WHERE DO YOU WANT TO INVEST?

CPP posts 6.6 per cent annual return

JANET McFARLAND

Globe and Mail Update

Published Thursday, May. 17, 2012

2:03PM EDT

Last updated Thursday, May. 17, 2012 2:16PM EDT

The Canada Pension Plan’s investment portfolio earned a 6.6 per cent return in the fiscal year ended

March 31 thanks entirely to gains from the fund’s private equity investments last year as public stock

markets recorded losses.

The Canada Pension Plan Investment Board, which manages the CPP’s investment portfolio, said

the pension giant’s asset base has reached a record $161.6-billion, which now makes the CPPIB

Canada’s largest pension fund manager based on publicly disclosed assets under management.

CPPIB, created in 1997 to manage the CPP’s money, has for the first time surpassed the Caisse de dépôt et placement

du Québec, which has long been Canada’s largest pension fund manager with $159-billion in assets under management

as of Dec. 31.

The Caisse does not report financial information on a quarterly basis, however, so its Dec. 31 asset total was likely

significantly larger by March 31 and may have still topped CPPIB’s March 31 numbers.

Despite its rapid growth over the past decade, CPPIB says it is still not a behemoth on a global scale, ranking 17th

internationally among national pension and sovereign wealth funds.

The CPPIB said its $13.4-billion increase in assets in 2012 included $9.9-billion in gains from investments and $3.9-billion

in new CPP contributions.

Despite predictions a year ago that CPPIB would slow its deal-making pace, “quite the opposite materialized,” CPPIB

chief executive officer David Denison told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market turbulence drove smaller or weaker investors onto

the sidelines.

“Even though it was quite turbulent in the markets, for a long-horizon investor like us turbulence does sometimes create

opportunities,” Mr. Denison said.

Mark Wiseman, CPPIB’s head of investments who will become CEO after Mr. Denison retires on June 30, said CPPIB

has emerged as a large private lender to corporations over the past three years, providing term loans and other short-term

lending as banks and other traditional lenders scaled back during the financial crisis and Euro-zone turmoil.

“Tandem Assets 1 LP expects to ultimately hold a $25-30m dollar

portfolio of income producing real estate

assets for a select few investors. This is an ideal size for an offering as it

allows management to focus closely on

the assets it has under management

and be flexible enough to acquire, sell or reposition

assets in a changing marketplace.”

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

M O N T H L Y I N C O M EAcquire assets that are currently returning 8-9% per annum in income

M A R K E T A P P R E C I A T I O NThrough diligent management

and proven market appreciation, niche commercial assets often

increase 5-7% per annum

M O R T G A G E P A Y D O W NEach month significant dollars are contributed to reduce the

principal of the mortgage

3 M A J O R P R O F I T C E N T R E S

Despite predictions a year ago that CPPIB would slow its deal-making pace,

“quite the opposite materialized,” CPPIB chief executive officer David Denison

told reporters Thursday. The fund instead invested more heavily in private

companies, real estate and infrastructure over the past year as market

turbulence drove smaller or weaker investors onto the sidelines.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED

PARTNERSHIP.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

A S S E T B A C K E DInvestors collectively own the limited partnership which owns the income

producing real estate assets.

][Market Appreciation

Mortgage Pay Down

Monthly Income

POTE

NTIA

L PR

OFI

T

TIME HORIZONTIME HORIZON

Page 8: Tandem Assets LP

K E V I N Z I O L K O S K I D I R E C T O R & C H I E F E X E C U T I V E O F F I C E R

From overseeing $345M worth of contractual spending, or raising over several million dollars in capital for private real estate opportunities across North America, Mr. Ziolkoski understands money and how it can best be used. In 2010, Mr. Ziolkoski became a managing partner of Blueprint.

M A R C I N D R O Z D Z P R E S I D E N T

Mr. Drozdz is a consistent top performer in the Exempt Market space and a respected advocate for investor and advisor education in the field of Alternative Investments. He is a Mentor, a Board Member with CREIC (Canada Real Estate Investors Club), a Director and a Board member with the National Exempt Market Association (NEMA) and is also the Chief Strategic Officer for Blueprint Global Partners.

S T E V E F R O E S E D I R E C T O R & V I C E - P R E S I D E N T , A C Q U I S I T I O N S

Mr. Froese has over 20 years of experience in residential and commercial real estate. He is a co-founder and partner in Alta Pacific Mortgage Investment Corp., a company that administers a $25M mortgage portfolio, and Dominion Properties; a company that owns and manages a real estate portfolio of over 500,000 sq. ft. of mixed retail and office space.

R O Y W I E B E V I C E - P R E S I D E N T , O P E R A T I O N S

Mr. Wiebe has extensive experience in development and management, along with owning and co-owning of commercial and residential real estate in Western Canada and the United States. He has successfully built and exited several multimillion dollar businesses ranging from agriculture to the oil service industry making him a key resource in evaluating market potential.

B R A D U N R A U V I C E - P R E S I D E N T , B U S I N E S S D E V E L O P M E N T

Mr. Unrau has been a CREA® licensed Realtor® in British Columbia since 1994. He is also a licensed mortgage broker and can be found among the top 2% of licensed mortgage brokers in Dominion Lending Centres. His extensive experience in the acquisition, financing and management of residential and commercial real estate in British Columbia and Alberta guides him towards seeking new opportunities.

M A N A G E M E N T T E A M

The founders of

Tandem Assets 1 LP

collectively have

over 60 years

of combined

experience,

catalyzing

well over

$100M dollars

in real estate

transactions,

developments,

financings, and

best use

restorations.

Page 9: Tandem Assets LP

Management of Tandem Assets has over 60 years of combined

experience. Members of the management team own over 500,000 sq. ft. of commercial

real estate and are personally invested in every offering

brought forth. Each member of the team offers unique traits and

skill sets. Utilizing this collective knowledge, the management

team is able to source key opportunities within the North

American marketplace.

The portfolio of real estate properties may include:

multiplexes, apartment buildings, mixed use commercial/residential buildings and

undeveloped parcels of land located in municipal centres

within North America. The current focus is Western Canada and South Western United States

where can be found some of today’s greatest, stable

growth potential.

THIS IS NOT A SOLICITATION TO SELL SECURITIES. THIS ADVERTISEMENT IS QUALIFIED BY THE INFORMATION CONTAINED IN THE APPLICABLE OFFERING

MEMORANDUM OF TANDEM ASSETS 1 LP. THERE ARE RISKS ASSOCIATED WITH THIS INVESTMENT. ACTUAL RESULTS MAY VARY SIGNIFICANTLY FROM PROJECTED RESULTS.

CONSULT YOUR OWN TAX AND INVESTMENT ADVISORS.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

I N V E S T O R S F I R S T

I N V E S T O R S F I R S T

www.TandemAssets.com


Recommended