CETANA REAL ESTATE INVESTMENT TRUST
CETANA REIT was created to build, invest in and or own sustainable, purpose-built rental units across Canada. CETANA REIT is committed to sustainable buildings with the option of mass timber construction and energy efficient solutions. CETANA REIT is an open-ended fund, RRSP and TFSA eligible, and available to accredited investors and certain exempt investors.
The Offering:
ISSUER: CETANA Real Estate Investment Trust (“Cetana REIT” or the “Trust”)
MAXIMUM OFFERING SIZE: Open Ended
SECURITIES OFFERED: Class A Units of Cetana REIT (the “Units”)
PRICE PER SECURITY: Currently $100 or such other price as determined by the trustees of Cetana REIT from time to time
INVESTMENT RETURN: 8% return, plus 75% of the upside over 8% to the investors
Initial distribution will be 6% per annum paid monthly and classified as return of capital. Once property is operating and profitable, distributions will increase to 8% per annum payable monthly. Upon a liquidity event, remaining principal and accrued interest will be returned plus pro rata share of 75% of the profit.
DISTRIBUTIONS: 6% annual distribution paid monthly (0.5% per month)
MINIMUM SUBSCRIPTION: $1,000
REDEMPTION: Monthly, as of the last business day of each month subject to certain conditions and restrictions.
ELIGIBILITY: The Units are eligible for all non-registered and registered (RRSP, RRIF, RESP and TFSA) accounts.
About Cetana REIT
Cetana Real Estate Investment Trust (“Cetana REIT” or the “REIT”) is an unincorporated open-ended investment trust formed under the laws of Ontario. The REIT is offering an unlimited number of class A units (the “Class A REIT Units” or “REIT Units”) on a continuous basis pursuant to the confidential offering memorandum.
The objectives of Cetana REIT are to:
Provide holders of the REIT Units (each, a “Unit holder”) with growing cash distributions, payable monthly and, to the extent reasonably possible, tax deferred distribution, from investments primarily in a diversified portfolio of multi-residential rental properties to be developed and located in Canada
Maximize REIT Unit value through the efficient management of the REIT’s properties and through the future development and or acquisition of additional assets 3. Deliver sustainable development through mass timber and lower carbon buildings.
Market Opportunity
There is an urgent demand for more housing in Ontario (publicly labeled as “the housing crisis” in the media), and there is widespread support for sustainable purpose-built rental units across the province. A number of key factors are driving this demand
1. Population Growth and Migration: Ontario has been experiencing significant population growth and inward migration, contributing to increased housing demand. According to Statistics Canada, Ontario's population grew by 4.6% between 2011 and 2016, and it is projected to increase further in the coming years.
Statistics Canada - Population and dwelling counts, for Canada, provinces, and territories, 2016 and 2011 censuses
2. Housing Affordability: Affordability has become a critical issue in Ontario, particularly in urban centers like Toronto and Ottawa. The rising cost of home ownership has made rental units an attractive option for many residents. The Canada Mortgage and Housing Corporation (CMHC) reports that the rental market in Ontario has tightened, with low vacancy rates and increasing rents.
Canada Mortgage and Housing Corporation (CMHC) - Rental Market Reports, Ontario
3. Housing Supply Shortage: There is a shortage of housing supply in Ontario, particularly in the form of purpose-built rental units. The Ontario Non-Profit Housing Association (ONPHA) states that the demand for rental housing has exceeded supply, leading to affordability challenges and long wait lists for affordable rental units.
Ontario Non-Profit Housing Association (ONPHA) - Affordable Housing 101
4. Support for Sustainable Housing: There is widespread support for sustainable purpose-built rental units across the province due to various reasons, including environmental consciousness, energy efficiency, and community development. The Government of Ontario has emphasized the importance of sustainable development and has introduced initiatives to promote energy-efficient housing.
Government of Ontario - Green Building and Sustainable Development
Ascenta Offerings are available on a ‘first-come, first-served’ basis. Please express your interest in participating in this financing and we will attempt to hold a position for you. Once you have been confirmed, we will provide you with a Subscription Agreement and Ascenta’s Know Your Client information.
Members of Ascenta may invest alongside its network in this offering.
Closings of this financing will occur at the Company’s discretion.
The Company has agreed to pay a finder’s fee of up to 6% cash for the financing plus a trailer fee of 1%.