Tandem Assets LP

Page 1

INVESTORS 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.

INVESTORS FIRST

www.TandemAssets.com

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.

FIRST


OUR BUSINESS

THE PLAN

Tandem 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.

The 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 EY

INVESTMENT PHILOSOPHY Capital Preservation • Through Acquisition Of Existing Income Producing Assets in Resilient Markets

Defined Terms • Fixed Monthly Income • Fixed Time Frame

F ACTORS

• Mismanaged, undervalued or underutilized

MANAGEMENT TEAM

KE VI N

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

The founders of Tandem Assets 1 LP

best be used. In 2010, Mr. Ziolkoski became a managing partner of Blueprint Global Partners.

MA R C I N

collectively have

Mr. Drozdz is a consistent top performer in the Exempt Market space and a respected advocate for investor and advisor education in the

over 60 years

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

of combined experience, catalyzing

also the Chief Strategic Officer for Blueprint Global Partners.

S TE VE

• Alignment with current market trends for refinancing

$100M dollars

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 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.

in real estate

R OY

Alignment

• Capital improvements

• Investors Are Paid First • Upon Exit Investors Are First To Receive Return Of Capital

• Restructuring & Refinancing

• Re-negotiating leases

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

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

transactions,

WI E B E

VICE-PRESIDENT, OPERATIONS

Mr.

• Repositioning in the marketplace

FR OE S E

DIRECTOR & VICE-PRESIDENT, ACQUISITIONS

Mortgage Investment Corp., a company that administers a $25M

well over

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.

DR OZ DZ

PRESIDENT

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

• Foreseeable future value

Z I OL KOS KI

DIRECTOR & CHIEF EXECUTIVE OFFICER

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

developments, financings, and

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

VICE-PRESIDENT, BUSINESS DEVELOPMENT

best use

Mr. Unrau has been a CREA® licensed Realtor® in British Columbia since 1994. He is also a licensed mortgage broker and can be found

restorations.

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.


43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

[ ]

WHERE DO YOU WANT TO INVEST?

MER debate: Mutual fund industry stan ds its ground Jonathan Chev

reau Dec 6, 20 11 –

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

6:22 PM ET | La

st Updated: Dec

7, 2011 12:39 PM

Dec 6, 2011 –

6:22 PM ET | Last

Updated: Dec

7, 2011 12:39 PM

WITH INVESTORS

Last upda

sday, May.

ted Thursda

Under $2M

ET

High mutual fund again under the fees charged by compan stock of IGM Finamicroscope, but I have no ies like Investors Group are onc fear my modest ncial Inc. is in muc holding in the e h jeopardy. Investors Group financialpost.co and I have exchanged view its robust man m and in print, about how s the past week, online at MERs of 2.5% agement expense ratios (MEmuch value its clients get from today’s low-intor more; even its bond fund Rs). Many of its funds sport s are erest-rate environ ment is an out just shy of 2%, which in rage in itself. Even though ther little doubt that e has been a sea change that will keep IGM Financial, the owner in how investors think, I hav and “advice” tominting money for shareho of Investors Group, has a mode lder investors who can’t be botheres — selling mutual funds el d with details There is still $77 like MERs. funds is barely 3-billion invested in mutual 6% of that: $49 funds, accordin -billion, accordin g to the Investm g to the Canadia ent To put it in pers n ETF Associat Funds Institute of Canada pective, Investor ion. ; the amount in year ago, the last s Group alon exchange-trade d by IGM Financia time IFIC broke out sales e has more assets than do by members. If l, the total is $12 the half-dozen you domestic ETF 8-billion, or mor players combine e than 2.5 timecount Mackenzie Financial Cor Frankly, I’m ama d— s all ETF assets in the country p., Investors Group itself and $61-billion as of a to pay the pric zed the fund industry has . other firms own ed and buggy at e of “embedded compensatistood its ground as well as it the dawn of the on” has automobile era. just so long as they don’t . Whether out of ignoranc see separate item e or True, the media ized bills. To me,inertia, its customers seem pay disp con this rop tent is like sticking Investment Awa ortionate atte with the horse Claymore for Clayrds were lavished exclusivntion to ETFs, despite the bes ely on t effo more’s commis mutual funds! sion-less ETF initihigh-priced actively managerts of the industry to brush them atives, which Sco d fund tia iTrade sells s with just one token awa aside. Last week’s Canadian . Funny, we’ve IFIC and Investor never seen an rd going to Scotia iTrade and award for “com contrast revealeds Group extol the “value” mission-less” of adv by the surging ETF industry. ice but seem to have missed a sea change in BMO ETFs unv consumer attit eile d a stud udes to fees and y Monday reve more they wan alin the t them g dramatic that . Of 1,520 while few — chiefly lower investment manadults polled by Leger Mar er than one in five know abo keting, only 18% agement costs ut them, the mor and tax efficienc were familiar with e Canadians lear David Chilton, y — ETF n a abo auth s. who But ut or ppin ETF once they lear of The Wealthy g 74% would use years, and it’s “ETF n about their bens, the Barber Returns, them. s that have efits says honestly don’t believe me. Theshone a light on it.” When he more people have asked him y think it’s nut tells Americans about fees in the ty. abo ” past six months ut Canadian divi No matter how than in dend mutual fund understand finagood an advisor is, it’s hard s with 2.7% MERthe past 20 to overcome the ncial advisors s, “they need to be paid . But more are drag of a 2.7% MER. Custom Even five years balking at the ers aren’t irate ago, few Canadia extra 1.7%. about the first by Canada’s fund ns realized 1%, Chilton says . They Tufano and coll industry, among the high how badly high MERs cut into long-term est-cost fund juris eagues. The indu wealth stry brushed off dict this study and ions in the western world, creation. This lack of price sen has shown little acco inclination to lowrding to a study by Harvardsitivity was exploited University’s Pete er fees as a resu r lt.

Thur Published T 2:03PM ED

Between $2M-$10M

ET

High mutual fu geted: Mbut again under th nd feeMsERchdearba INVESTORS FIRST y ua colm anies like Inve fup nd scst op indu st stock of IGM Fi e micro o rye,stb rs u t G I an ro h up are on e nnd grou o fe nancial Inc. is in ds itsav Investors are paid first • Very poorly much jeopardar my modest holding in the ce y. In throughout the whole vestors Grou managed financialpost.c p and I have exchanged vie term of the offering. • Major repairs its robust man om and in print, about how ws the past week, online at Investors are also first required (HVAC, MERs of 2.5% oagement expense ratios (M much value its clients get fr ER o r m m s) to receive 100% of their . Roof, Electrical) o M re an ; even y of today’s low-in terest-rate enviits bond funds are just shy oits funds sport capital back upon exit. f ronment is an • Income as of outrage in itse2%, which in Even though th lf . April 2012 $1.5M little doubt th ere has been a sea change TRUE ALIGNMENT that will keep at IGM Financial, the owner in how investors think, I hav o m e f in In ti ve 83 UNIT SUITE n g st m o rs o n G e and “advice” to ro y Management compensation investors who for shareholders — selling up, has a model EDMONTON, ALBERTA mutual funds can’t be bothe is heavily based on success red with details There like MERs. rn tu e r l a u • $12M purchase price fun is still $773-billion invest n of investors. n ent a e6d.6inpm ds is barely 6% eructu s st al o fu p in summer of 2010 n of th d P s, P ac Cat: $49-billion , according to cording to the Investment the Canadian RLAND A cF M • Building was in need To put it in persp T ETF Associatio Funds Institute of C ManAadNa;AthG EMENT MONEY ect JANE n. e am ount in exchan te rsaG of minor renovations year ago, the last ti ive, InvestdoM a d pup alon ro U il e has more asse an me IFGIC e ro FIRST IN, LA S T O gUe-t T raded lobb by IGM Financi ke ts o u than do the hal 2012 s by members al, the total is $Thursday, Mtaysa . 17,le • Sold units through fd o zen do . If you Published 128-billion, managing the or moPM T plaaddition individual strata title Fran reEDthT an 2.5 tim count Mackenzie Financial mestic ETFIn yers combto 2:03PM ED 2:16 inethe 12 kly, I’m amaze 20 C , e o s 17 rp . al ., l $61-billion as E May In , T ve F ay as partnership, sd st d ur se o rs Group itself d — Tandem the fuLanstdupdainted ts in the countr d Th of a reyetuarrnended to pay the price al l u • $2M profit was n ca u st an fis an t ry y. e n d th h cein o as theralso er st rn p o o 6 tu fi f o 6. re rm “e d tscent m it s k s os Management team will be b o p g e r oc w ro d P st ned pe d P u ic an e 6 n C d bl d as well as it h d buggy at the comedpa 6. on Dts last year as pu obtained rtfolio earn ensaticF as N st so ”LAju d aw . en W Rm enft po n h Ast e mo th ve st lo M in th e ve n r investing in the same ownership ty e ET in g o N ui au s ut as they don’t se toivm lan’ ateJA oeqbile era.Update pr Pension P e separate itemof ignorance or inertia, its cu the fund’s ail TrThe ue,Canthadea mkseen gains from to lobe and M A st Units) ized billstructure y G om as investors. el tir d ia pay disprop s. To me, th(Class THUNDERBIRD MOBILEInMve than lio, said is is like stickiners seem content arch ortionate atten st31 ent portfo meconrdt ed m . st es ve A in Although management g witwill loss w ’s ards w tio h thhold nP to ETFs, d CP e horse PPIB HOME PARK lavishe, wdhich ages the e Cit Clamym arkets man ore akesethsp e e re for Claymoreere xc m th d be lu w de e si rd en no ve ar oa st ch B ye ly t hi high e cal o identical shares to investors, w ff en n fis o n, e m rt th io st t. s ’s in ill ve o en co rn ceagem In mmis mutual funa d returi SIERRA VISTA, AZ an d as siord $161.6rtf-boliEoTeaFrnedinaas6.6sepetsr ceunnt-p stock acputi blicve der m Pen ly managed fuf the industry to brush s!sion Plan has reac hed a reco n-lenet ss ts last year po sclosed itiainv them tmen The Canad they will not exit all the tm ve se asid s, di private equity ties ba w ly ’s inves t h ic e. La an se ic Pl bl h as pu ion st wuntil S ns t’s coentit a iTrade se nds with just one toke eek’s Canadian • Acquired for $2.2M e fund’s nada Peer basedto on nsion gian t et placem The Ca ins from th pô n pe ag ga e dé aw an lls th m de ar . ely e Fu d go IFIC and Invees nny, we’ve neve investors exit first. e Caiss ion fuMnd anks entir ent said o,em pe ag arch 31 th rtfoli rpassed th man rsnsG enrt po r seen an awar ing to Scotia iTrade and s larg stto tmde st time su ses. invtsesun assse e cord’soedmlonlosth Can in P’ • Property is currently contr e CP s for the fir ha“v esillithon CPPIB kets rext d ag-b ey,e e asadta’revealed b roagmuearp 59 fo an th m $1 r es al “commission-l ich ak ith ue”Boaragod,erfwhad w wm the CPP , which no vi61ce ndenmt an stm illion vefu ent. ess” Inn to myanthe surgin .6-bb u an nsio t PlE generating over se t pe managem ion e es g m ns d in 1997 der to rg record $1 Pe te un a la T d ea s da ts F h a’ cr he na se in , av ac ad as re ustry. e missed a sea PPIB CeanCa Th se has d disclosed ely s long been ’s asset ba lik on publicly ha nt d as ch gia ch BMOCduETQué se w 9% income (9% hi l ba an ion w ge in consume set tota Fsbec,unveiled a stthe pens gest pension fund manager Dec. 31 as r attitudes to fe udday’s lar onday arre ever, so its 31. capitalization rate) more asthofeDyec.w basis, how es and the dra terly ve . qu rs a ant them. OCafalna1infoM al in mbe g nu th ation on 31 at matic rm ch while fewer th 17th — chiefly lowees not report financi ,520 stad IB’s Mar u edsCPP lt pp an to g p ill in o o nk lle n • Long term tenants, e d e do r investm d may have e, ra in b ss al y ai fi sc C Le ve al e g ob kn Th an ent managem era glMarke ow abo h on March 31 a behemot eit nis tstillco larger by notst low maintenance and s and tax effici ting, only 18% were familiar ut them, the more Canadia gnificantly David Csih PPIB says C , de ns e ca with ETFs. But n cy — ilton, auth s. past de a wonhopping 7 limited vacancies year ealth fund oovr erothf eTh once they lear learn about ETFs, the $3.9-billi growth vereign w e 4 soal ents and W % d m e st an w , s, anDesdpiit te its rapid n ve o e th io in u c n about their b ld use them. y Barber Retu a ’s “E ins from TFs national pens on in making p enefits .9-billirn s,gasa lly among that have sh aple honestlyintedrnoatniona ys d • Mobile homes m cluded $9 s o in o it n re 12 e a w 20 n eople ts in light on it slo isoke ’t believe me. nas h ld e av u D e o se in asse . ” W ea w id cr h v in e a IB n d n P Th D h h eveteollsffierAciaem im ab r ,”riCPPIB ey ath act as direct 3.4-billio inthita’st CnPutty.” lizede said its $1 cans ab tet Canad out fees in the past six ar go k site mat ecutipo rivoau f , e“qx .ns a ye ie No matteThr ehCwoPPCwIBPP ions h uite the op mo ey in p o utti c atil ian dividend m collateral rib iv v ce nt IB pr ic a P co pa in d e g P ily h av he re ,” itsCdeal-makin good an adavitesorialiwzouelddslow oreo utual funds witnths than in the past 20 to sinpneite pre dmm sted vete et stors ona undersDtaen rk steavdeins IBis, it ’s r inin m ker invea m PP nd ea d e h 2.7% MERs, “t C fu w s a it at e or s th d th te r h Th r o o le . ar s finan al st yea ay into overculen op cipala yearviagsors ynto.ldTrehpoertersfuThnurdsdd drove sm hey m eepdara rb ovce e th th r e “quitDeespite epredictions erad e e a arket tu ison d . m d en o s to g D as e rs o id b ar re n u f e av ye li a Dh aiudc. tu past ap fic T ofrs But more aroenbto the sid2e.7% MER. Custom str ivee er thein utrt THE ABOVE CITED TRACK RECORD OF eco fr ure ovn f exp ct Even fivetoye ru d st chiere fra ld in alkingmetat ar imes s ag estate a thcreaeteextra 1.7% ers aren’t irate about the investors PAST PROJECTS ARE FOR ILLUSTRATIVE oal estatereanC adlan es, re mpani by Canada’cscoofu adiam reweaker vestor like us turbulence does so an.ie, sfe, w . first 1%, Chilto o n r s mnplin e re ll al a PURPOSES AND ARE ONLY INTENDED TO iz d s in desindustrydrove hoorizwon badly hig the side r a long-h A S S E T B A Cn K sa E ys D . They fo , h ts M SHOW SOME PAST PERFORMANCES Tu OF fano and coturbulence , amonthg ke ar ER s cut intoPPlo e mthe highe lle st ag rbulent in -c u tu IB o e n st s. ite g C -t Th qu fu e id n rm wealth creat e industry bru MANAGEMENT ON SIMILAR ASSETS. THESE gh it was ne 30, sa Juo onti “Even thou ns in th tiresic shed off thteisr Mstr. Ddenisjuonriresd ion. Investors erm own the limited ison said. This lack ocollectively et-tw PROPERTIES ARE NOT PART OF THE TANDEM r shor estern world, ac s,” Mr. Den u s and othe d f price sensitivi y an EO af C lo an e portunitie rm d m te op h co as be ing co id ill sh rd w ov ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO o pr in ho w ty the w s, g n was income partnership to a study by which little inclinatio exploited ree year rmoil. vestments ro -zone tu the past th Harvardowns head of in n GUARANTEE THAT PAST PERFORMANCES to lo isis and Eu ations over , CPPIB’s w cr U or e an al n rp r ci iv em fe co e an is e to rs s it er e fin as y producing real estate assets. ark W th nd ’s Peter M g a le e re rin at du su iv WILL BE REPLICATED. ck lt. e pr Jonathan Chev reau

TANDEM Assets 1 LP

MOVING IN TANDEM

17, 2012

y, May. 17

M EDT , 2012 2:16P

cement dépôt et pla Caisse de ment rpassed the r manage first time su sets unde the as in for n s -billio ney, ha r with $159 CPP’s mo d manage nage the fun ma to ion ns 97 largest pe ated in 19 Canada’s CPPIB, cre s long been s likely , which ha set total wa du Québec Dec. 31 as ver, so its 31. basis, howe y erl as of Dec. art . qu ation on a 31 numbers ancial inform PIB’s March t report fin g 17th ll topped CP e does no ale, rankin y have sti The Caiss a global sc 31 and ma on rch th Ma mo by y larger not a behe ntl ll sti ica is nif it sig says de, CPPIB past deca funds. billion h over the gn wealth and $3.9rapid growt and soverei estments Despite its l pension na ins from inv tio na billion in ga y among .9all $9 on ed ati intern 2012 includ assets in increase in 3.4-billion CPPIB said its $1 terialized,” The CPPIB posite ma . ite the op tions in private g pace, “qu P contribu re heavily in new CP deal-makin mo to its ted w es slo d inv estors on would fund instea weaker inv that CPPIB day. The smaller or year ago ce drove orters Thurs dictions a t turbulen on told rep rke Despite pre nis ma De as year r David er the past utive office tructure ov chief exec ate e and infras metimes cre , real estat ce does so companies us turbulen estor like s. inv n ne zo eli ori the sid for a long-h markets, lent in the quite turbu said CPPIB ugh it was June 30, “Even tho id. retires on sa nison short -term . Denison and other ies,” Mr. De O after Mr term loans opportunit come CE be ing l vid wil o years, pro il. ents wh tm ee mo es thr tur inv st ne pa ’s head of d Euro-zo s over the l crisis an man, CPPIB corporation the financia Mark Wise lender to ck during ge private scaled ba ed as a lar al lenders ion has emerg dit tra other banks and lending as

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

“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.”

Significantly less competition for real estate assets

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

3 MAJOR PROFIT CENTRES

MONTHLY INCOME

MORTGAGE PAY DOWN

MARKET APPRECIATION

Acquire assets that are currently returning 8-9% per annum in income

Each month significant dollars are contributed to reduce the principal of the mortgage

Through diligent management and proven market appreciation, niche commercial assets often increase 5-7% per annum

TTIIM MEE H HO ORRIIZZO ON N n atio reci p p A ket Mar Down ge Pay Mortga Monthly Income

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

larg aled ba ged as a l lenders sc has emer r traditiona s and othe nk ba as lending

FOLD PANEL

Over $10M

PAGE 1

POTENTIAL PROFIT

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS


:

PARTICIPATE IN AN ASSET CLASS THAT HAS A PROVEN HISTORY

‘‘ ‘‘

IN V E S TORS

F IRST

ASSET MIX

RISK MITIGATION TRIPLE NET LEASES

NNN means that tenants pay property taxes, property management, insurance, repairs and utilities

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”.

MULTIPLE EXIT STRATEGIES

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

- 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)

70

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

%

*

OF THE PROFITS

VALUE IMPLEMENTATION PROCESS Monthly Cashflow 5 Year Term Asset Backed

Targeted 12%*Annualized Return R Investors Are Paid First R Investors Receive Return Of Capital First

When 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

• Restructuring & Refinancing

• Strategic Renovations

• Capital Improvements

• Finding Efficiencies And Reducing Expenses

• Re-Branding

• Re-Negotiating Leases

*Until

a 12% annualized return is realized

then 50% of the profits until partnership is exited.

INSIDE PANELS

4

Monetize & Maximize Assets Throughout Term

R RRSP & TFSA Eligible R $10,000 Minimum

• Re-Leasing

BUSINESS PLAN

R Investment Is Asset Backed R 5 Year Term

• Change Of Use

Acquire Performing Niche Sized Assets Year 1

1

3

2

Implement Value Creation Process Years 1-3

Liquidation & Exit Years 4-5

IDENTIFYING OPPORTUNITY Due diligence on a “micro-economic” and “macro-economic” level are key in determining a property of interest.

MI C RO - EC O NO MI C S APPRAISAL

NET MIGRATION

n Property’s worth?

n Area’s population trends?

n How has it been assessed?

n Are there more people arriving

(Direct comparison, Income or Cost Approach )

ZONING

ROBUST DUE DILIGENCE

n How is the property being used?

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

n Is it the best use?

MULTIPLE TENANTS

This ensures assets to consistently perform regardless if fluctuations in vacancy levels occur EXPERIENCED MANAGEMENT TEAM

• Over 60 Years of Combined Experience • Over $100M Dollars in Real Estate Transactions • Proven Management Track Record EXISTING INCOME PRODUCTION

Assets purchased have strong existing income substantially reducing risk SIZE OF OFFERING

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

MAC RO - EC O NO MI C S

n Are there limitations against future

improvements/additions?

FINANCING

n How is this property going to be

purchased?

n How will lenders view this

purchase?

ENVIRONMENTAL REPORT

n Are there any current

environmental concerns?

n What is the history of the property? ENGINEERING REPORT

n What is the condition of the

existing building or buildings?

n What is the structural integrity?

or departing?

INDUSTRY

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?

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.

SITE SURVEY/ REAL PROPERTY REPORT

n Are there any easements

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

TRANSPORTATION

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

expansion plans pending?

GOVERNMENT

n How easy/difficult is it to do

business?

n How do taxes for businesses

compare to other areas?


[ ]

THE STOCK MARKET HAS REALLY THROWN EVERYONE FOR A LOOP

43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

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

WHERE DO YOU WANT TO INVEST?

MER debate: Mutual fund industry stan ds its ground

ENTHUSIASM WITHOUT A DOUBT SPIRALED DOWNWARD AGAIN

DECLINERS

EDGED DEVALUE

Jonathan Chev LOWER

reau Dec 6, 20 11 –

6:22 PM ET | La

EXPECTATIONS

UIpd A G A I N st BR N at GedA O 20W I N : DecN 7,

SIT

SHY

11 12:39 PM ET

MOVING IN TANDEM WITH INVESTORS

High mutual fu geted: Mbut again under th nd feeMsERchdearba INVESTORS FIRST y ua coIlTm an fu nd icro A L L S HeYmO N Ae, Gb AIN W Hp N OieWs lik WeI NInve I Nsto O U T R A S H O R T scEst o inC p du stock ofF IG ry rs u t st G I an ro h ds itsave nnd up are M Financial Inc. o fear my mod Investors are paid first is in muchgrjeou est holding in once • Very poorly opardy. the In throughout the whole vestors Grou managed OU FhTan HE END OF THE OWRKD DISLDL TO SL SELL e TeO financialHpEoDstG.cE pL OanWdE IRhE av xc term of the offering. g e d vie • Major repairs its robust man om and in print, about how ws the past week, online at Investors are also first required (HVAC, MERs of 2.5% oagement expense ratios (M much value its clients get fr ER o r m m s) to receive 100% of their . Roof, Electrical) o M re an ; even y of today’s low-in terest-rate enviits bond funds are just shy oits funds sport capital back upon exit. f ronment is an • Income as of outrage in itse2%, which in Even though th lf . April 2012 $1.5M ere has been a little doub MISSED sea chang t that IGM Finan TRUE ALIGNMENT cial, the owne e in how investors think, I hav that will keep r of Investors G m e in ti 83 UNIT SUITE n g m o n e and “advice” to ro y Management compensation investors who for shareholders — selling up, has a model EDMONTON, ALBERTA mutual fundsM I N D can’t be bothe is heavily based on success red with details There like MERs. rn tu e r l a u • $12M purchase price fun is still $773-billion invest n of investors. n ent a e6d.6inpm ds is barely 6% eructu s st al o fu p in summer of 2010 n of th d P s, P ac Cat: $49-billion ATE , according to cording to the Invest ment Funds In the Canadian RLAND A cF M • Building was in need To put it in persp T stitute of C E N E A T J F ManAadNa;AthG EMENT MONEY A ss e o ct ciation. iv e, In e am vestorsaG ount in exchan te al of minor renovations year ago, the last ti dap p ro U u il M o ne has more as and me IFGIC e ro FIRST IN, LA S T O gUe-t T raded lobb by IGM Financi ke se ts o u than do th D EeB T 2012 s by members al, the total is $Thursday, Mtaysa . 17,le • Sold units through h al fd o zen do . If you Published 128-billion, managing the or moPM T plaaddition individual strata title Fran reEDthT an 2.5 tim count Mackenzie Financial mestic ETFIn yers combto 2:03PM ED 2:16 inethe 12 kly, I’m amaze 20 C , e o s 17 rp . al ., l $61-billion as E May In , T ve F ay as partnership, sd st d ur se o rs Group itself d — Tandem the fuLanstdupdainted ts in the countr d Th of a reyetuarrnended to pay the pSriEce al l u • $2M profit was n ca u st an fis an t ry y. e n d th h ceO o as L L of “e HO W L O N G C A N T H E C N T I N U E D D O W N T U R N in theralso er st rn p o 6 tu fi o 6. re rm d tscent m it s k s os Management team will be b o p g e r oc w ro d P st ned pe d P u ic an e 6 n C d bl d as well as it h d buggy at the comedpa 6. on Dts last year as pu obtained rtfolio earn ensaticF as N st so ”LAju d aw . en W Rm enft po n h Ast e mo th ve st lo M in th e ve n r investing in the same ownership ty e ET in g o N ui au s ut as they don’t se toivm lan’ ateJA oeqbile era.Update pr Pension P e separate itemof ignorance or inertia, its cu the fund’s ail TrThe ue,Canthadea mkseLen gains from to lobe and M A st Units) ized billstructure y G om as investors. el tir d iaS pDay s. To me, th(Class O K Dd Kis Dp KDIKG CCC KDKDKD V OlioL,Isa T IidL E MARKET THUNDERBIRD MOBILEInMve than roportionCatCeCat is is like stickiners seem content arch st31 ent portfo meconrdt ed m . st es ve A in te Although management g witwill loss w ’s n ards w tio h thhold nP to ETFs, d CP e horse PPIB HOME PARK lavishe, wdhich ages the e Cit Clamym arkets man ore akesethsp e e re for Claymoreere xc m th d be lu w de e si rd en no ve ar oa st ch B ye ly t hi high e cal o identical shares to investors, w ff en n fis o n, e m rt th io st t. s ’s in ill ve o en co rn f the industry In mmisresicoordn-l mutual funa d returi SIERRA VISTA, AZ 61.6-b dem $1e r cent-p anag stock ac bliPcve r mce a 6.6 pets Pen ly man to s!sion PlaDn F D ha EoTDeaFrnFedin F D F acheDd Fa D F tmen Dt Fss D Dde F ts last ye DarRasOpuPti ED A Gag A IeNd fun d as ituitse portfolisc them en iay DinvtiFesun tm The Canad they will not exit all the ve se s re asid s, di loprse ds with just on brush ba w ly ’s inves t eq h ic e. La an se ic te Pl bl h as iva pu ion st wuntil S t a iT t’s co enti Pens based on nd’s an eek’s Canadian fu da em gi • Acquired for $2.2M e na e ac n th pl to io ra Ca m e d ke ns t et Th manager e ins fro pô n pe se ga e dé aw lls to th de ar . ely e Fu d go IFIC and Invees nny, we’ve neve investors exit first. e Caiss ion fuMnd anks entir ent said o,em pe ag arch 31 th rtfoli rpassed th man rsnsG enrt po r seen an awar ing to Scotia iTrade and s larg stto tmde st time su ses. invtsesun assse e cord’soedmlonlosth Can in P’ • Property is currently contr e CP s for the fir ha“v esillithon CPPIB kets rext d ag-b ey,e e asadta’revealed b roagmuearp 59 fo an th m $1 r es al “commission-l ich ak ith uFe” w CPP oDd,erfwhad ag Bo t an , which F DtoFmy D F ethFesu D Frg F in F F tFpe Fan F ioFInnve Ffustm FndFenm Dar F FviD61 F on D DnoFw m LmO W E Rt. RETURNS ce anth illi ess” .6-bb u ns t PlE generating over se anagemen ion e es g m ns d in 1997 der to rg record $1 Pe te un a la T d ea s da ts F h a’ cr he na se in , av ac ad as re ustry. e missed a sea PPIB CeanCa Th se has d disclosed ely s long been ’s asset ba lik on publicly ha nt d as ch gia ch BMOCduETQué se w 9% income (9% hi l ba an ion w ge in consume set tota Fsbec,unveiled a stthe pens gest pension fund manager Dec. 31 as r attitudes to fe lar unadday’sM ever, so its 31. Ca capitalization rate) more asthofeDyec.w ononday basis, how es and the dra terly re ar ve . qu rs a anL tOth al in mbe n g nu io th e at m 31 at matic rm . ch fo KD KD K IB D’s MKarD K Dw K hDile K fe Dw K MISSED QUARTER — chiefly lowees notSreTportDfinDanOKcifalD1in ,5D2K0Dstad e r u edsCPP th o th lt pp 17 an to g p ill in o nk lle n • Long term tenants, e d e do r investm d may have e, ra in b ss al y ai fi sc C Le ve al e g ob kn Th an ent managem era glMarke ow abo h on March 31 a behemot eit nis tstillco larger by notst low maintenance and s and tax effici ting, only 18% were familiar ut them, the more Canadia gnificantly David Csih PPIB says C , de ns e ca with ETFs. But n cy — ilton, auth s. past de a LwonhFoUpNpDinSg 7 limited vacancies year ealth fund oovr erothf eTh once they lear learn about ETFs, the growth re VioeA L dUesoEal Fth FigFnFwD DFFFDD F D FinD FstmenM UdT$3 U.9A-billi ve ts an 4 W % an w , s, anDesdpiit te its rapiLdO W E R n ve o e u c n about their b ld use them. y Barber Retu a ’s “E ins from TFs national pens on in making p enefits .9-billirn s,gasa lly among that have sh aple honestlyintedrnoatniona ys d • Mobile homes m cluded $9 s o in o it n re 12 e a w 20 n eople ts in light on it slo isoke ’t believe me. nas h ld e av u D e o se in asse . ” W ea w id cr h v in e a IB n d n P Th D h h eveteollsffierAciaem im ab r ,”riCPPIB ey ath act as direct 3.4-billio inthita’st CnPutty.” lizede said its $1 cans ab tet Canad out fees in the past six ar go k site mat ecutipo rivoau f , e“qx .ns a ye ie No matteThr ehCwoPPCwIBPP ions h uite the op mo ey in p o utti c atil ian dividend m collateral rib iv v ce nt IB pr ic a P co pa in d e g P ily h av he re ,” itsCdeal-makin good an adavitesorialiwzouelddslow oreo utual funds witnths than in the past 20 to sinpneite pre dmm sted vete et stors ona undersDtaen rk steavdeins IBis, it ’s r inin m ker invea m PP nd ea d e h 2.7% MERs, “t C fu w s a it at e or s th d th te r h Th r o o le . ar s finan al st yea ay into overculen op cipala yearviagsors ynto.ldTrehpoertersfuThnurdsdd drove sm hey m eepdara rb ovce e th th r e “quitDeespite epredictions erad e e a arket tu ison d . m d en o s to g D as e rs o id b ar re n u f e av ye li a Dh aiudc. tu past ap fic T ofrs But more aroenbto the sid2e.7% MER. Custom str ivee er thein utrt THE ABOVE CITED TRACK RECORD OF eco fr ure ovn f exp ct Even fivetoye ru d st chiere fra ld in alkingmetat ar imes s ag estate a thcreaeteextra 1.7% ers aren’t irate about the investors PAST PROJECTS ARE FOR ILLUSTRATIVE oal estatereanC adlan es, re mpani by Canada’cscoofu adiam reweaker vestor like us turbulence does so an.ie, sfe, w . first 1%, Chilto o n r s mnplin e re ll al a PURPOSES AND ARE ONLY INTENDED TO iz d s in desindustrydrove hoorizwon badly hig the side r a long-h A S S E T B A Cn K sa E ys D . They fo , h ts M SHOW SOME PAST PERFORMANCES Tu OF fano and coturbulence , amonthg ke ar ER s cut intoPPlo e mthe highe lle st ag rbulent in -c u tu IB o e n st s. ite g C -t Th qu fu e id nd ju esic MANAGEMENT ON SIMILAR ASSETS. THESE gh it was ne 30, sa VeVin V dustry bru V she VJuo V VV B B Rrm wealth creatio Investors collectively own the limited onti “Even thou ns in tir V erm n. This lack of p d off thafteisr Mstr. Duendisyonriresd th ison said. et-tw PROPERTIES ARE NOT PART OF THE TANDEM r shor estern world, ac s,” Mr. Den s and othe an EO rice sensitivity C lo an e portunitie rm d m te op h co as be ing co id ill sh rd w ov ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO o pr in ho w w s, g partnership n was income the to a study by which little inclinatio exploited ree year rmoil. stments ad of inve ro -zone tu the past th Harvardowns he Eu er n ’s d ov GUARANTEE THAT PAST PERFORMANCES to IB an ns lower fees asproducing crisis Universassets. oratio an, CPP it er to corp e financial y real estate ark Wisem th nd ’s Peter M g a le e re rin at du su iv WILL BE REPLICATED. ck lt. e pr Jonathan Chev reau

Dec 6, 2011 –

6:22 PM ET | Last

Updated: Dec

7, 2011 12:39 PM

ET

High mutual fund again under the fees charged by compan stock of IGM Finamicroscope, but I have no ies like Investors Group are onc fear my modest ncial Inc. is in muc holding in the e h jeopardy. Investors Group financialpost.co and I have exchanged view its robust man m and in print, about how s the past week, online at MERs of 2.5% agement expense ratios (MEmuch value its clients get from today’s low-intor more; even its bond fund Rs). Many of its funds sport s are erest-rate environ ment is an out just shy of 2%, which in rage in itself. Even though ther little doubt that e has been a sea change that will keep IGM Financial, the owner in how investors think, I hav and “advice” tominting money for shareho of Investors Group, has a mode lder investors who can’t be botheres — selling mutual funds el d with details There is still $77 like MERs. funds is barely 3-billion invested in mutual 6% of that: $49 funds, accordin -billion, accordin g to the Investm g to the Canadia ent To put it in pers n ETF Associat Funds Institute of Canada pective, Investor ion. ; the amount in year ago, the last s Group alon exchange-trade d by IGM Financia time IFIC broke out sales e has more assets than do by members. If l, the total is $12 the half-dozen you domestic ETF 8-billion, or mor players combine e than 2.5 timecount Mackenzie Financial Cor Frankly, I’m ama d— s all ETF assets in the country p., Investors Group itself and $61-billion as of a to pay the pric zed the fund industry has . other firms own ed and buggy at e of “embedded compensatistood its ground as well as it the dawn of the on” has automobile era. just so long as they don’t . Whether out of ignoranc see separate item e or True, the media ized iz bills. To me,inertia, its customers seem pay disp con this rop tent is like sticking Investment Awa ortionate atte with the horse Claymore for Clayrds were lavished exclusivntion to ETFs, despite the bes ely on t effo more’s commis mutual funds! sion-less ETF initihigh-priced actively managerts of the industry to brush them atives, which Sco d fund tia iTrade sells s with just one token awa aside. Last week’s Canadian . Funny, we’ve IFIC and Investor never seen an rd going to Scotia iTrade and award for “com contrast revealeds Group extol the “value” mission-less” of adv by the surging ETF industry. ice but seem to have missed a sea change in BMO ETFs unv consumer attit eile d a stud udes to fees and y Monday reve more they wan alin the t them g dramatic that . Of 1,520 while few — chiefly lower investment manadults polled by Leger Mar er than one in five know abo keting, only 18% agement costs ut them, the mor and tax efficienc were familiar with e Canadians lear David Chilton, y — ETF n a abo auth s. who But ut or ppin ETF once they lear of The Wealthy g 74% would use years, and it’s “ETF n about their bens, the Barber Returns, them. s that have efits says honestly don’t believe me. Theshone a light on it.” When he more people have asked him y think it’s nut tells Americans about fees in the ty. abo ” past six months ut Canadian divi No matter how than in dend mutual fund understand finagood an advisor is, it’s hard s with 2.7% MERthe past 20 to overcome the ncial advisors s, “they need to be paid . But more are drag of a 2.7% MER. Custom Even five years balking at the ers aren’t irate ago, few Canadia extra 1.7%. about the first by Canada’s fund ns realized 1%, Chilton says . They Tufano and coll industry, among the high how badly high MERs cut into long-term est-cost fund juris eagues. The indu wealth stry brushed off dict this study and ions in the western world, creation. This lack of price sen has shown little acco inclination to lowrding to a study by Harvardsitivity was exploited University’s Pete er fees as a resu r lt.

Thur Published T 2:03PM ED Last upda

sday, May.

ted Thursda

17, 2012

y, May. 17

M EDT , 2012 2:16P

cement dépôt et pla Caisse de ment rpassed the r manage first time su sets unde the as in for n s -billio ney, ha r with $159 CPP’s mo d manage nage the fun ma to ion ns 97 largest pe ated in 19 Canada’s CPPIB, cre s long been s likely , which ha set total wa du Québec Dec. 31 as ver, so its 31. basis, howe y erl as of Dec. art . qu ation on a 31 numbers ancial inform PIB’s March t report fin g 17th ll topped CP e does no ale, rankin y have sti The Caiss a global sc 31 and ma on rch th Ma mo by y larger not a behe ntl ll sti ica is nif it sig says de, CPPIB past deca funds. billion h over the gn wealth and $3.9rapid growt and soverei estments Despite its l pension na ins from inv tio na billion in ga y among .9all $9 on ed ati intern 2012 includ assets in increase in 3.4-billion CPPIB said its $1 terialized,” The CPPIB posite ma . ite the op tions in private g pace, “qu P contribu re heavily in new CP deal-makin mo to its ted w es slo d inv estors on would fund instea weaker inv that CPPIB day. The smaller or year ago ce drove orters Thurs dictions a t turbulen on told rep rke Despite pre nis ma De as year r David er the past utive office tructure ov chief exec ate e and infras metimes cre , real estat ce does so companies us turbulen estor like s. inv n ne zo eli ori the sid for a long-h markets, lent in the quite turbu said CPPIB ugh it was June 30, “Even tho id. retires on sa nison short -term . Denison and other ies,” Mr. De O after Mr term loans opportunit come CE be ing l vid wil o years, pro il. ents wh tm ee mo es thr tur inv st ne pa ’s head of d Euro-zo s over the l crisis an man, CPPIB corporation the financia Mark Wise lender to ck during ge private scaled ba ed as a lar al lenders ion has emerg dit tra other banks and lending as

larg A G A I N T H A aled MgeI S S Ea D N E X ba PECTED d as l lenders sc has emer r traditiona s and othe nk ba as lending

FOLD PANEL

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

“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.”

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

3 MAJOR PROFIT CENTRES

MONTHLY INCOME

MORTGAGE PAY DOWN

MARKET APPRECIATION

Acquire assets that are currently returning 8-9% per annum in income

Each month significant dollars are contributed to reduce the principal of the mortgage

Through diligent management and proven market appreciation, niche commercial assets often increase 5-7% per annum

TTIIM MEE H HO ORRIIZZO ON N n atio reci p p A ket Mar Down ge Pay Mortga Monthly Income

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

WEAKER STOCK MARKET DOWN

PAGE 1

POTENTIAL PROFIT

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS


:

PARTICIPATE IN AN ASSET CLASS THAT HAS A PROVEN HISTORY

‘‘ ‘‘

IN V E S TORS

F IRST

ASSET MIX

TRIPLE NET LEASES

COMMERCIAL CENTRES • Essential Services Tenants

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

• Reputable Anchor Tenants • Longer Term Leases With Rental Increases Established

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”.

• Triple Net Leases (NNN) SHORT TERM LENDING • Capitalize On Short Term Professional Lending Opportunities

- 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)

• Secure The Partnership In A Mortgage Position • Create Liquidity Within The Partnership

70

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

%

*

OF THE PROFITS

VALUE IMPLEMENTATION PROCESS Monthly Cashflow 5 Year Term Asset Backed

Targeted 12%*Annualized Return R Investors Are Paid First R Investors Receive Return Of Capital First

When 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

• Restructuring & Refinancing

• Strategic Renovations

• Capital Improvements

• Finding Efficiencies And Reducing Expenses

• Re-Branding

• Re-Negotiating Leases

R $10,000 Minimum

*Until

a 12% annualized return is realized

then 50% of the profits until partnership is exited.

• Re-Leasing

4

Monetize & Maximize Assets Throughout Term

R RRSP & TFSA Eligible R 5 Year Term

• Change Of Use

BUSINESS PLAN

R Investment Is Asset Backed

INSIDE PANELS

RISK MITIGATION

Acquire Performing Niche Sized Assets Year 1

1

3

2

Implement Value Creation Process Years 1-3

Liquidation & Exit Years 4-5

NNN means that tenants pay property taxes, property management, insurance, repairs and utilities MULTIPLE EXIT STRATEGIES

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

IDENTIFYING OPPORTUNITY Due diligence on a “micro-economic” and “macro-economic” level are key in determining a property of interest.

MI C RO - EC O NO MI C S APPRAISAL

NET MIGRATION

n Property’s worth?

n Area’s population trends?

n How has it been assessed?

n Are there more people arriving

(Direct comparison, Income or Cost Approach )

ZONING

ROBUST DUE DILIGENCE

n How is the property being used?

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

n Is it the best use?

MULTIPLE TENANTS

This ensures assets to consistently perform regardless if fluctuations in vacancy levels occur EXPERIENCED MANAGEMENT TEAM

• Over 60 Years of Combined Experience • Over $100M Dollars in Real Estate Transactions • Proven Management Track Record EXISTING INCOME PRODUCTION

Assets purchased have strong existing income substantially reducing risk SIZE OF OFFERING

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

MAC RO - EC O NO MI C S

n Are there limitations against future

improvements/additions?

FINANCING

n How is this property going to be

purchased?

n How will lenders view this

purchase?

ENVIRONMENTAL REPORT

n Are there any current

environmental concerns?

n What is the history of the property? ENGINEERING REPORT

n What is the condition of the

existing building or buildings?

n What is the structural integrity?

or departing?

INDUSTRY

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?

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.

SITE SURVEY/ REAL PROPERTY REPORT

n Are there any easements

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

TRANSPORTATION

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

expansion plans pending?

GOVERNMENT

n How easy/difficult is it to do

business?

n How do taxes for businesses

compare to other areas?


43,000 SQ FT OFFICE MALL FORT MCMURRAY, ALBERTA

[ ]

WHERE DO YOU WANT TO INVEST?

MER debate: Mutual fund industry stan ds its ground Jonathan Chev

reau Dec 6, 20 11 –

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

6:22 PM ET | La

st Updated: Dec

7, 2011 12:39 PM

MOVING IN TANDEM WITH INVESTORS ET

High mutual fu geted: Mbut again under th nd feeMsERchdearba INVESTORS FIRST y ua colm anies like Inve fup nd scst op indu st stock of IGM Fi e micro o rye,stb rs u t G I an ro h up are on e nnd grou o fe nancial Inc. is in ds itsav Investors are paid first • Very poorly much jeopardar my modest holding in the ce y. In throughout the whole vestors Grou managed financialpost.c p and I have exchanged vie term of the offering. • Major repairs its robust man om and in print, about how ws the past week, online at Investors are also first required (HVAC, MERs of 2.5% oagement expense ratios (M much value its clients get fr ER o r m m s) to receive 100% of their . Roof, Electrical) o M re an ; even y of today’s low-in terest-rate enviits bond funds are just shy oits funds sport capital back upon exit. f ronment is an • Income as of outrage in itse2%, which in Even though th lf . April 2012 $1.5M little doubt th ere has been a sea change TRUE ALIGNMENT that will keep at IGM Financial, the owner in how investors think, I hav o m e f in In ti ve 83 UNIT SUITE n g st m o rs o n G e and “advice” to ro y Management compensation investors who for shareholders — selling up, has a model EDMONTON, ALBERTA mutual funds can’t be bothe is heavily based on success red with details There like MERs. rn tu e r l a u • $12M purchase price fun is still $773-billion invest n of investors. n ent a e6d.6inpm ds is barely 6% eructu s st al o fu p in summer of 2010 n of th d P s, P ac Cat: $49-billion , according to cording to the Investment the Canadian RLAND A cF M • Building was in need To put it in persp T ETF Associatio Funds Institute of C ManAadNa;AthG EMENT MONEY ect JANE n. e am ount in exchan te rsaG of minor renovations year ago, the last ti ive, InvestdoM a d pup alon ro U il e has more asse an me IFGIC e ro FIRST IN, LA S T O gUe-t T raded lobb by IGM Financi ke ts o u than do the hal 2012 s by members al, the total is $Thursday, Mtaysa . 17,le • Sold units through fd o zen do . If you Published 128-billion, managing the or moPM T plaaddition individual strata title Fran reEDthT an 2.5 tim count Mackenzie Financial mestic ETFIn yers combto 2:03PM ED 2:16 inethe 12 kly, I’m amaze 20 C , e o s 17 rp . al ., l $61-billion as E May In , T ve F ay as partnership, sd st d ur se o rs Group itself d — Tandem the fuLanstdupdainted ts in the countr d Th of a reyetuarrnended to pay the price al l u • $2M profit was n ca u st an fis an t ry y. e n d th h cein o as theralso er st rn p o o 6 tu fi f o 6. re rm “e d tscent m it s k s os Management team will be b o p g e r oc w ro d P st ned pe d P u ic an e 6 n C d bl d as well as it h d buggy at the comedpa 6. on Dts last year as pu obtained rtfolio earn ensaticF as N st so ”LAju d aw . en W Rm enft po n h Ast e mo th ve st lo M in th e ve n r investing in the same ownership ty e ET in g o N ui au s ut as they don’t se toivm lan’ ateJA oeqbile era.Update pr Pension P e separate itemof ignorance or inertia, its cu the fund’s ail TrThe ue,Canthadea mkseen gains from to lobe and M A st Units) ized billstructure y G om as investors. el tir d ia pay disprop s. To me, th(Class THUNDERBIRD MOBILEInMve than lio, said is is like stickiners seem content arch ortionate atten st31 ent portfo meconrdt ed m . st es ve A in Although management g witwill loss w ’s ards w tio h thhold nP to ETFs, d CP e horse PPIB HOME PARK lavishe, wdhich ages the e Cit Clamym arkets man ore akesethsp e e re for Claymoreere xc m th d be lu w de e si rd en no ve ar oa st ch B ye ly t hi high e cal o identical shares to investors, w ff en n fis o n, e m rt th io st t. s ’s in ill ve o en co rn ceagem In mmis mutual funa d returi SIERRA VISTA, AZ an d as siord $161.6rtf-boliEoTeaFrnedinaas6.6sepetsr ceunnt-p stock acputi blicve der m Pen ly managed fuf the industry to brush s!sion Plan has reac hed a reco n-lenet ss ts last year po sclosed itiainv them tmen The Canad they will not exit all the tm ve se asid s, di private equity ties ba w ly ’s inves t h ic e. La an se ic Pl bl h as pu ion st wuntil S ns t’s coentit a iTrade se nds with just one toke eek’s Canadian • Acquired for $2.2M e fund’s nada Peer basedto on nsion gian t et placem The Ca ins from th pô n pe ag ga e dé aw an lls th m de ar . ely e Fu d go IFIC and Invees nny, we’ve neve investors exit first. e Caiss ion fuMnd anks entir ent said o,em pe ag arch 31 th rtfoli rpassed th man rsnsG enrt po r seen an awar ing to Scotia iTrade and s larg stto tmde st time su ses. invtsesun assse e cord’soedmlonlosth Can in P’ • Property is currently contr e CP s for the fir ha“v esillithon CPPIB kets rext d ag-b ey,e e asadta’revealed b roagmuearp 59 fo an th m $1 r es al “commission-l ich ak ith ue”Boaragod,erfwhad w wm the CPP , which no vi61ce ndenmt an stm illion vefu ent. ess” Inn to myanthe surgin .6-bb u an nsio t PlE generating over se t pe managem ion e es g m ns d in 1997 der to rg record $1 Pe te un a la T d ea s da ts F h a’ cr he na se in , av ac ad as re ustry. e missed a sea PPIB CeanCa Th se has d disclosed ely s long been ’s asset ba lik on publicly ha nt d as ch gia ch BMOCduETQué se w 9% income (9% hi l ba an ion w ge in consume set tota Fsbec,unveiled a stthe pens gest pension fund manager Dec. 31 as r attitudes to fe udday’s lar onday arre ever, so its 31. capitalization rate) more asthofeDyec.w basis, how es and the dra terly ve . qu rs a ant them. OCafalna1infoM al in mbe g nu th ation on 31 at matic rm ch while fewer th 17th — chiefly lowees not report financi ,520 stad IB’s Mar u edsCPP lt pp an to g p ill in o o nk lle n • Long term tenants, e d e do r investm d may have e, ra in b ss al y ai fi sc C Le ve al e g ob kn Th an ent managem era glMarke ow abo h on March 31 a behemot eit nis tstillco larger by notst low maintenance and s and tax effici ting, only 18% were familiar ut them, the more Canadia gnificantly David Csih PPIB says C , de ns e ca with ETFs. But n cy — ilton, auth s. past de a wonhopping 7 limited vacancies year ealth fund oovr erothf eTh once they lear learn about ETFs, the $3.9-billi growth vereign w e 4 soal ents and W % d m e st an w , s, anDesdpiit te its rapid n ve o e th io in u c n about their b ld use them. y Barber Retu a ’s “E ins from TFs national pens on in making p enefits .9-billirn s,gasa lly among that have sh aple honestlyintedrnoatniona ys d • Mobile homes m cluded $9 s o in o it n re 12 e a w 20 n eople ts in light on it slo isoke ’t believe me. nas h ld e av u D e o se in asse . ” W ea w id cr h v in e a IB n d n P Th D h h eveteollsffierAciaem im ab r ,”riCPPIB ey ath act as direct 3.4-billio inthita’st CnPutty.” lizede said its $1 cans ab tet Canad out fees in the past six ar go k site mat ecutipo rivoau f , e“qx .ns a ye ie No matteThr ehCwoPPCwIBPP ions h uite the op mo ey in p o utti c atil ian dividend m collateral rib iv v ce nt IB pr ic a P co pa in d e g P ily h av he re ,” itsCdeal-makin good an adavitesorialiwzouelddslow oreo utual funds witnths than in the past 20 to sinpneite pre dmm sted vete et stors ona undersDtaen rk steavdeins IBis, it ’s r inin m ker invea m PP nd ea d e h 2.7% MERs, “t C fu w s a it at e or s th d th te r h Th r o o le . ar s finan al st yea ay into overculen op cipala yearviagsors ynto.ldTrehpoertersfuThnurdsdd drove sm hey m eepdara rb ovce e th th r e “quitDeespite epredictions erad e e a arket tu ison d . m d en o s to g D as e rs o id b ar re n u f e av ye li a Dh aiudc. tu past ap fic T ofrs But more aroenbto the sid2e.7% MER. Custom str ivee er thein utrt THE ABOVE CITED TRACK RECORD OF eco fr ure ovn f exp ct Even fivetoye ru d st chiere fra ld in alkingmetat ar imes s ag estate a thcreaeteextra 1.7% ers aren’t irate about the investors PAST PROJECTS ARE FOR ILLUSTRATIVE oal estatereanC adlan es, re mpani by Canada’cscoofu adiam reweaker vestor like us turbulence does so an.ie, sfe, w . first 1%, Chilto o n r s mnplin e re ll al a PURPOSES AND ARE ONLY INTENDED TO iz d s in desindustrydrove hoorizwon badly hig the side r a long-h A S S E T B A Cn K sa E ys D . They fo , h ts M SHOW SOME PAST PERFORMANCES Tu OF fano and coturbulence , amonthg ke ar ER s cut intoPPlo e mthe highe lle st ag rbulent in -c u tu IB o e n st s. ite g C -t Th qu fu e id n rm wealth creat e industry bru MANAGEMENT ON SIMILAR ASSETS. THESE gh it was ne 30, sa Juo onti “Even thou ns in th tiresic shed off thteisr Mstr. Ddenisjuonriresd ion. Investors erm own the limited ison said. This lack ocollectively et-tw PROPERTIES ARE NOT PART OF THE TANDEM r shor estern world, ac s,” Mr. Den u s and othe d f price sensitivi y an EO af C lo an e portunitie rm d m te op h co as be ing co id ill sh rd w ov ASSETS 1 LIMITED PARTNERSHIP. THERE IS NO o pr in ho w ty the w s, g n was income partnership to a study by which little inclinatio exploited ree year rmoil. vestments ro -zone tu the past th Harvardowns head of in n GUARANTEE THAT PAST PERFORMANCES to lo isis and Eu ations over , CPPIB’s w cr U or e an al n rp r ci iv em fe co e an is e to rs s it er e fin as y producing real estate assets. ark W th nd ’s Peter M g a le e re rin at du su iv WILL BE REPLICATED. ck lt. e pr Jonathan Chev reau

Dec 6, 2011 –

6:22 PM ET | Last

Updated: Dec

7, 2011 12:39 PM

ET

High mutual fund again under the fees charged by compan stock of IGM Finamicroscope, but I have no ies like Investors Group are onc fear my modest ncial Inc. is in muc holding in the e h jeopardy. Investors Group financialpost.co and I have exchanged view its robust man m and in print, about how s the past week, online at MERs of 2.5% agement expense ratios (MEmuch value its clients get from today’s low-intor more; even its bond fund Rs). Many of its funds sport s are erest-rate environ ment is an out just shy of 2%, which in rage in itself. Even though ther little doubt that e has been a sea change that will keep IGM Financial, the owner in how investors think, I hav and “advice” tominting money for shareho of Investors Group, has a mode lder investors who can’t be botheres — selling mutual funds el d with details There is still $77 like MERs. funds is barely 3-billion invested in mutual 6% of that: $49 funds, accordin -billion, accordin g to the Investm g to the Canadia ent To put it in pers n ETF Associat Funds Institute of Canada pective, Investor ion. ; the amount in year ago, the last s Group alon exchange-trade d by IGM Financia time IFIC broke out sales e has more assets than do by members. If l, the total is $12 the half-dozen you domestic ETF 8-billion, or mor players combine e than 2.5 timecount Mackenzie Financial Cor Frankly, I’m ama d— s all ETF assets in the country p., Investors Group itself and $61-billion as of a to pay the pric zed the fund industry has . other firms own ed and buggy at e of “embedded compensatistood its ground as well as it the dawn of the on” has automobile era. just so long as they don’t . Whether out of ignoranc see separate item e or True, the media ized bills. To me,inertia, its customers seem pay disp con this rop tent is like sticking Investment Awa ortionate atte with the horse Claymore for Clayrds were lavished exclusivntion to ETFs, despite the bes ely on t effo more’s commis mutual funds! sion-less ETF initihigh-priced actively managerts of the industry to brush them atives, which Sco d fund tia iTrade sells s with just one token awa aside. Last week’s Canadian . Funny, we’ve IFIC and Investor never seen an rd going to Scotia iTrade and award for “com contrast revealeds Group extol the “value” mission-less” of adv by the surging ETF industry. ice but seem to have missed a sea change in BMO ETFs unv consumer attit eile d a stud udes to fees and y Monday reve more they wan alin the t them g dramatic that . Of 1,520 while few — chiefly lower investment manadults polled by Leger Mar er than one in five know abo keting, only 18% agement costs ut them, the mor and tax efficienc were familiar with e Canadians lear David Chilton, y — ETF n a abo auth s. who But ut or ppin ETF once they lear of The Wealthy g 74% would use years, and it’s “ETF n about their bens, the Barber Returns, them. s that have efits says honestly don’t believe me. Theshone a light on it.” When he more people have asked him y think it’s nut tells Americans about fees in the ty. abo ” past six months ut Canadian divi No matter how than in dend mutual fund understand finagood an advisor is, it’s hard s with 2.7% MERthe past 20 to overcome the ncial advisors s, “they need to be paid . But more are drag of a 2.7% MER. Custom Even five years balking at the ers aren’t irate ago, few Canadia extra 1.7%. about the first by Canada’s fund ns realized 1%, Chilton says . They Tufano and coll industry, among the high how badly high MERs cut into long-term est-cost fund juris eagues. The indu wealth stry brushed off dict this study and ions in the western world, creation. This lack of price sen has shown little acco inclination to lowrding to a study by Harvardsitivity was exploited University’s Pete er fees as a resu r lt.

Thur Published T 2:03PM ED Last upda

sday, May.

ted Thursda

17, 2012

y, May. 17

M EDT , 2012 2:16P

cement dépôt et pla Caisse de ment rpassed the r manage first time su sets unde the as in for n s -billio ney, ha r with $159 CPP’s mo d manage nage the fun ma to ion ns 97 largest pe ated in 19 Canada’s CPPIB, cre s long been s likely , which ha set total wa du Québec Dec. 31 as ver, so its 31. basis, howe y erl as of Dec. art . qu ation on a 31 numbers ancial inform PIB’s March t report fin g 17th ll topped CP e does no ale, rankin y have sti The Caiss a global sc 31 and ma on rch th Ma mo by y larger not a behe ntl ll sti ica is nif it sig says de, CPPIB past deca funds. billion h over the gn wealth and $3.9rapid growt and soverei estments Despite its l pension na ins from inv tio na billion in ga y among .9all $9 on ed ati intern 2012 includ assets in increase in 3.4-billion CPPIB said its $1 terialized,” The CPPIB posite ma . ite the op tions in private g pace, “qu P contribu re heavily in new CP deal-makin mo to its ted w es slo d inv estors on would fund instea weaker inv that CPPIB day. The smaller or year ago ce drove orters Thurs dictions a t turbulen on told rep rke Despite pre nis ma De as year r David er the past utive office tructure ov chief exec ate e and infras metimes cre , real estat ce does so companies us turbulen estor like s. inv n ne zo eli ori the sid for a long-h markets, lent in the quite turbu said CPPIB ugh it was June 30, “Even tho id. retires on sa nison short -term . Denison and other ies,” Mr. De O after Mr term loans opportunit come CE be ing l vid wil o years, pro il. ents wh tm ee mo es thr tur inv st ne pa ’s head of d Euro-zo s over the l crisis an man, CPPIB corporation the financia Mark Wise lender to ck during ge private scaled ba ed as a lar al lenders ion has emerg dit tra other banks and lending as

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

“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.”

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

3 MAJOR PROFIT CENTRES

MONTHLY INCOME

MORTGAGE PAY DOWN

MARKET APPRECIATION

Acquire assets that are currently returning 8-9% per annum in income

Each month significant dollars are contributed to reduce the principal of the mortgage

Through diligent management and proven market appreciation, niche commercial assets often increase 5-7% per annum

TTIIM MEE H HO ORRIIZZO ON N n atio reci p p A ket Mar Down ge Pay Mortga Monthly Income

STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

larg aled ba ged as a l lenders sc has emer r traditiona s and othe nk ba as lending

FOLD PANEL

PAGE 1

POTENTIAL PROFIT

RECENT MANAGEMENT ACQUIRED REAL ESTATE INVESTMENTS


MANAGEMENT TEAM

KEVIN

ZIOLKOSKI

DIRECTOR & CHIEF EXECUTIVE OFFICER

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

The founders of Tandem Assets 1 LP

best be used. In 2010, Mr. Ziolkoski became a managing partner of Blueprint.

MARCIN

DROZDZ

PRESIDENT

collectively have

Mr. Drozdz is a consistent top performer in the Exempt Market space and a respected advocate for investor and advisor education in the

over 60 years

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

of combined experience, catalyzing

also the Chief Strategic Officer for Blueprint Global Partners.

STEVE

FROESE

DIRECTOR & VICE-PRESIDENT, ACQUISITIONS

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

well over

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. 

$100M dollars in real estate

ROY Mr.

transactions,

WIEBE

VICE-PRESIDENT, OPERATIONS

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

developments, financings, and

ranging from agriculture to the oil service industry making him a key resource in evaluating market potential. 

BRAD

UNRAU

VICE-PRESIDENT, BUSINESS DEVELOPMENT

best use

Mr. Unrau has been a CREA® licensed Realtor® in British Columbia since 1994. He is also a licensed mortgage broker and can be found

restorations.

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.


INVESTORS 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.

INVESTORS FIRST

www.TandemAssets.com

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.

FIRST


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