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
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.
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
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.
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
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.
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
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.
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