Clifton Blake
REIT

Class A Multifamily
in Core Toronto

Opportunity

Toronto’s housing stock is significantly undersupplied and this trend is expected to continue beyond 2030 with a population growth of over 150,000 annually. Clifton Blake is seeking new equity capital to build brand new Class A multifamily rental projects in core urban neighbourhoods.

GROWING POPULATION

The Greater Toronto Area’s population was 7.3 million in 2022 and is projected to be about 8.0 million by 2030.

DESTINATION GTA

Canada admitted a record number of immigrants in 2022 with 159,679 of these immigrants settling in the GTA (1).

OPPORTUNITY

The Government of Canada is focused on bringing another 1.4 million immigrants by 2025, the population currently exceeds 40 million people.

GTA POPULATION GROWTH1 (000’S)

TORONTO APARTMENT RENTAL MARKET REPORT2 (000’S)

  1. Statistics Canada and Ontario Ministry of Finance
  2. TRREB Rental Market Report Archives

Clifton Blake has an existing portfolio and a $500 million pipeline of Class A multi-family rental development opportunities which addresses this problem.

Clifton Blake has an existing portfolio and a $500 million pipeline of Class A multi-family rental development opportunities which addresses this problem.

New incentives have improved the cost and time to market for such projects, while market displacement, including canceled condo projects and reduced purchasing power has accelerated citywide rental rates.

New incentives have improved the cost and time to market for such projects, while market displacement, including canceled condo projects and reduced purchasing power has accelerated citywide rental rates.

New incentives have improved the cost and time to market for such projects, while market displacement, including canceled condo projects and reduced purchasing power has accelerated citywide rental rates.

The REIT is seeking new capital to invest in urban mixed-use rentals. These funds will be invested in identified assets with a 12%-14% annualized return, that pays a monthly cash distribution of 7% per annum.

The REIT is seeking new capital to invest in urban mixed-use rentals. These funds will be invested in identified assets with a 12%-14% annualized return, that pays a monthly cash distribution of 7% per annum.

Clifton Blake is a best-in-class developer and operator with a fully integrated platform and depth of experience.

Clifton Blake is a best-in-class developer and operator with a fully integrated platform and depth of experience.

PROJECTED SHORTFALL IN HOUSING IN ONTARIO

Executive Summary

Clifton Blake is a full cycle development and asset manager of core Toronto Class A multifamily mixed use rental projects.

FOCUS ON EXECUTION

Clifton Blake is a fully integrated real estate developer/operator, focused on urban infill multi-family rental apartments, with a history of successful projects in Toronto, Canada.

$1 BILLION UNDER MANAGEMENT

Currently closing in on over $1 billion of assets under management, including $750 million of direct real estate and $500 million in the pipeline.

STRONG PORTFOLIO

Portfolio will consist of over 1,000 multi-family rental suites in core Toronto and approximately 200,000 square feet of commercial properties.

SEASONED LEADERSHIP

Expertise in key in-housed functions such as construction management, property management, leasing, and commercial mortgages enables the execution of the Company’s growth strategy.

REIT Overview

$250M

ASSETS UNDER
MANAGEMENT

12-14%

TARGETED TOTAL RETURN

7%

MONTHLY CASH DISTRIBUTIONS

REAL ESTATE INCOME TRUST

RRSP ELIGIBLE

Key Firm Statistics

$750M

ASSETS UNDER
MANAGEMENT

>1,000

TOTAL MULTI-FAMILY UNITS

100%

OCCUPANCY RATE

11.7%

2023 NET RETURN*

*LTM Net Return to Investors in the REIT

INVESTMENT HIGHLIGHTS

SEASONED LEADERSHIP TEAM

ADVISED BY A WEALTH OF EXPERIENCE

Portfolio Overview

Diversified portfolio across the GTA consisting of 11 assets, primarily composed of multi-family rental apartments

EXISTING TENANTS

NET OPERATING INCOME MIX

Multi-Family Residential

Other

AVERAGE PORTFOLIO MIX

Average is calculated from 2025 & beyond

Stabilized Assets

Development Capital/Mezzanine

Multi-Family Residential

Other

Stabilized Assets

Development Capital/Mezzanine

Clifton Blake’s portfolio of assets compares favourably to private and publicly listed multi-family REITs.

COMPARABLE ANALYSIS

Strong Rental Market

Investors can benefit through rental income and appreciation due to favourable trends in the demand for rentals.

STRONG MARKET

The number of renters has increased three times faster than homeowners in the last decade.

UNDER SUPPLIED

The number apartments added to the primary rental stock in 2022 was not sufficient to meet the demand and an under-supply is projected for the next 10 years.

OPPORTUNITY

An extensive gap exists between the cost of renting versus owning – making renting a more feasible option.

MONTHLY RENT AND CARRYING COST OF OWNERSHIP (GTA)

Source: TRREB Rental Market Report Archives
* Carrying costs for condominium are calculated on the average MLS® price, a 5% down payment, the discounted five-year fixed mortgage rate, and a 25-year amortization period. They include condominium fees, property taxes, and mortgage loan insurance premiums

Capitalizing on Rental
Market Developments

Prices are forecasted to continue to increase due to a lack of inventory to meet market demand.

STRONG RENTALS

Land is fully occupied in Toronto, therefore Apartments are an important and growing segment of the market.

GROWING NEED

Immigration into Canada continues at a record pace for the foreseeable future, with 1.4 million new immigrants by 2025.

OPPORTUNITY

This continued trend has increased the demand for apartments in the rental market.

AVERAGE RENT PRICE IN TORONTO BY APARTMENT TYPE1

  1. Toronto Regional Real Estate Board

COLLEGE WEST

College West offers a culturally rich and modern living experience.

Positive Employment Trends

Toronto continues to attract businesses driving strong employment growth of high-paying jobs.

EMPLOYMENT HUB

Toronto is the third-largest and one of the fastest-growing tech hubs in North America, with several other industries providing employment (financial, mining, food and more).

SKILLED WORKFORCE

Toronto’s skilled workforce is fuelled by the presence of globally renowned universities that attract top talent from around the world.

OPPORTUNITY

The presence of this talent pool creates investment opportunities in the labour market for businesses.

TORONTO UNEMPLOYMENT RATE1

DEVELOPMENT ASSET

1886-1928
Eglinton W.
(Cricket Park 1 & 2)

227 Rental Units

Retail at
Grade


  • AAA Retail: BMO, KFC, Grocery Store
  • Along Eglinton LRT transit line
  • Under Construction

2946-2968
Dundas Street W. (The Junction)

120
Rental Units

Office
Space

Retail at Grade


  • 30,000 sq. ft. commercial, including BMO, Starbucks
  • Attractive neighbourhood
  • Under Construction

871-899 College Street

112 Units

89
Rental

23
Condo

Retail at Grade


17,000 sq. ft. of Essential Retail Space under negotiation. All plans approved and construction is under way.

PIPELINE OPPORTUNITIES

1875-1901
Eglinton W.

430+ Rental Units

Retail at
Grade


  • 11,000 sq. ft. retail at grade
  • Adjacent to Eglinton Crosstown LRT station
  • Phase 3 of development project, controlling new supply in the node

1930-1938 Bloor St
High Park

130+ Luxury Residential Rental Units

Retail at
Grade


  • Ground floor retail
  • Adjacent to existing High Park subway station
  • Overlooking High Park and Lake Ontario

871-899 College Street

112 Units

89
Rental

23
Condo

Retail at Grade


17,000 sq. ft. of Essential Retail Space under negotiation. All plans approved and construction is under way.

Historical Track Record

The firm has generated favourable, steady returns across strategies since inception; as compared to a multi-family residential real estate yield index.

HISTORICAL RETURNS

  1. Annualized net returns across all strategies since inception: represents distribution yield on all assets, across all Clifton Blake funds
  2. Constituents include the publicly-listed comparable companies on the “Comparable Analysis” slide

COMPLETED PROJECTS

871-899 College St.

112 Residential Units

Retail at
Grade


  • Hotel-inspired living, professionally managed
  • 17,000 sq. ft. of essential retail space, anchored by local grocer, Pusateri’s
  • Rooftop terrace with view of city skyline
  • In place rents 20%+ greater than pro forma

1027 Yonge Street


  • Transformed to a 6-storey building
  • Highly sought affluential neighbourhood
  • 3 levels of luxury residential suites
  • AAA retail with 15 year term – Shoppers Drug Mart

1133 Yonge Street


  • Renovation of 50,000 sqft. of Commercial Space – SOLD
  • Award winning building – Toronto Urban Design for Midrise
  • Retailers with long term leases
  • >20% IRR

ADVANCED CONSTRUCTION CAPABILITIES

Clifton Blake has demonstrated capabilities in executing advanced construction techniques. In-house construction division is capable of self-performing our own projects.

772 Queen St. E.

  • AAA commercial leases – BMO Bank, LCBO, Dollarama
  • Enhanced density by building apartments while retailers in occupancy

Impressive Augmentation in Asset Value

Capital preservation is propelled by the stability in cash flow generated.

The Trust’s strategy aims to increase the value of the portfolio at a healthy rate.

Appendix

ARTICLES & INSIGHT

15-Minute Cities: Everything you need to know, from the plans to the conspiracies

Read the Article

The unwelcome fallout from the foreign buyer ban

Read the Article

Canada’s Shortage of Rental Housing Could Quadruple by 2026

Read the Article

Environmental, Social & Governance

Read the Article
Previous
Next

LEGAL DISCLOSURE

This presentation is for informational purposes only and is intended to provide a general overview of the Clifton Blake Private Real Estate Income Trust (“Clifton Blake” or the “REIT”), and does not purport to be complete. This presentation of the Fund together with the Term Sheet for the Fund (together the “Offering Documents”) constitute all of the offering documents of the Fund. The Offering Documents are confidential and not to be disclosed, reproduced or disseminated to any person without the prior written consent of Clifton Blake. Any investment in the units of the Fund involves significant commercial, economic, liquidity and other risks. Prospective investors must make their own evaluation of these risks and the terms of the units and the Fund, and should they chose to invest in the units of the Fund, would be required to represent and warrant that they have the sophistication, financial resources and opportunity to do so. The contents of the Offering Documents are not to be construed as legal, business or tax advice and under no circumstances are the Offering Documents to be construed as an advertisement or a public offering of securities.

Information regarding the current portfolio and characteristics of the Fund are provided as of November 1, 2023. The Offering Documents also contains ‘forward-looking information’ within the meaning of the Securities Act (Ontario) that may be material. Forward-looking information includes disclosure regarding the possible events, conditions or results of operations, and the opinions of Clifton Blake, that is based on assumptions about future economic conditions and courses of action. Clifton Blake believes such assumptions are reasonable and provide a reasonable basis for such forward-looking information; however, actual results may vary materially from the forward-looking information contained in the Offering Documents. Clifton Blake assumes no obligation to update the Offering Documents and any forward-looking information, except as required by law.

RELATED & CONNECTED ISSUER DISCLOSURE

The securities of the Fund may be distributed by Clifton Blake Securities Ltd. (“CB Securities”), which is an affiliate of, and “Related Issuer” and “Connected Issuer” of the Fund, within the meaning of applicable securities laws. CB Securities is a registered Exempt Market Dealer in the provinces of Ontario, Alberta and British Columbia, and is a wholly-owned subsidiary of the general partner of the Fund, Clifton Blake Asset Management Ltd. The decision to distribute the securities of the Fund is taken by the Fund without any requirement, suggestion or consent of CB Securities, and the pricing and other terms of the distribution were determined by the Fund, having regard to, among other things, the fair market value of the existing units of the Fund. CB Securities will earn customary dealer fees in connection with the distribution.

RIGHTS OF ACTION FOR DAMAGES OR RESCISSION FOR ONTARIO INVESTORS

Section 130.1 of the Securities Act (Ontario) (the “Ontario Act”) provides a statutory rights of action for damages or rescission to investors resident in Ontario who purchase securities of the Fund, in the event that the Offering Documents and any amendment to it contains a “Misrepresentation”. A purchaser resident in Ontario should refer to the provisions of the Ontario Act and its regulations for particulars of the rights and defences discussed above and consult with a lawyer. Securities legislation applicable to investors in provinces or territories other than Ontario may provide for similar rights and remedies; purchasers resident in such provinces or territories should refer to the securities legislation of that province or territory. The following is a summary of such rights applicable to a purchaser who is resident in Ontario:

In accordance with Section 130.1 of the Ontario Act, in the event that an offering memorandum or any amendment thereto contains a Misrepresentation, a purchaser who purchases securities offered by such offering memorandum during the period of distribution has, without regard to whether the purchaser relied upon the Misrepresentation, a right of action against the issuer for damages, or, while still the owner of the such securities purchased by that purchaser, for rescission, in which case, if the purchaser elects to exercise the right of rescission, the purchaser will have no right of action for damages against the issuer, provided that: (a) the issuer will not be liable if it proves that the purchaser purchased the securities with knowledge of the Misrepresentation; (b) in the case of an action for damages, the issuer will not be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities as a result of the Misrepresentation relied upon; and (c) in no case will the amount recoverable in any action exceed the price at which the securities were sold to the purchaser. No action shall be commenced to enforce these statutory rights more than: (a) in an action for rescission, 180 days from the date of the transaction that gave rise to the cause of action; or (b) in an action for damages, the earlier of: (i) 180 days after the plaintiff first had knowledge of the facts giving rise to the cause of action; or (ii) three years after the date of the transaction that gave rise to the cause of action.

REGISTER FOR RENTAL

L

Lorol Nielsen | 647-524-2726

M

Monica Agudelo | 647-891-5029