ROI Land Investments Ltd Issues Letter to Shareholders and Bondholders
(Thomson Reuters ONE) -
MONTREAL, September 16(th), 2015 -- ROI Land Investments Ltd. (OTCQB: ROII)
("ROI" or the "Company"), a diversified real estate land development investment
company, issued today the following letter to shareholders:
Dear Fellow Shareholders & Bondholders:
The first half of 2015 has been an exciting time at ROI as we commenced work on
multiple new real estate development projects, strengthened our senior
management and operational teams and launched an effort to increase visibility
among investors. As we head into the second half of the year, we want to take
this opportunity to highlight the most relevant developments at the Company and
share with you our plans for the future.
As you know, ROI fills an underserved niche in the commercial/residential real
estate development process. Specifically, we focus on purchasing attractive land
free of zoning restrictions; securing the proper development permits and putting
into place the necessary infrastructure. We believe this is the most profitable
of the four primary stages of real estate development (raw land acquisition,
pre-development and entitlement approval, infrastructure construction and income
generation).
We have successfully positioned ROI to actively participate in the development
of residential and mixed-use projects, targeting areas simultaneously
experiencing strong economic growth but a shortage of housing stock to keep up
with demand. This includes the Liquefied Natural Gas ("LNG") pipeline
development in British Columbia, Canada, which is driven by LNG Canada
Development Inc. ("LNG Canada"), among other companies. The total development
cost for each of these projects is expected to be approximately $10-$20 million,
with a total sellable area of not less than 50% of the parcel. With each
project, we partner with an established local developer to help us navigate the
intricacies of each market. We aim to secure clear and binding exit strategies
before our development work is completed, and then sell our remaining interests
in the projects to local developers, who will continue construction work.
This approach offers a number of advantages:
1. Provides ROI with local expertise
2. Secures a clear exit strategy for each investment
3. Enables us to generate proprietary deal flow
4. Helps us reduce operating costs
The unique strategy underlying ROI's operating platform allows us to maximize
our returns on investment for each project while reducing risk. Currently, ROI
is the leading U.S.-listed public company that adheres to this strategy, which
we believe will position us as an attractive opportunity for equity investors
looking to gain exposure to the real estate market.
Capital Raising and Liquidity
Overall, the appetite for investing in ROI and our developments remains strong
and we have made meaningful progress raising debt and equity to fund individual
projects and corporate growth. As we continue to develop existing projects and
acquire new ones, we intend to finance our growth in a way that provides the
lowest possible cost of capital. To that end, we have engaged two New York-based
investment banking firms to help us raise additional capital and debt and
cultivate relationships with institutional investors in the U.S.
Projects Update
ROI has built a robust, diversified project portfolio that is currently
comprised of 6 projects in various stages of development across the United
States, Canada and Dubai. Based on our projections, we believe we can achieve
low- to mid-triple digit returns on investment for each project, with exit times
ranging from 22-74 months.
Below is a table summarizing each project:
+-------+-----------+----------+-----------+-----+---------------+-------------+
|Country| City | Status |Square feet|Units| Type | Expected |
| | | | | | | Completion |
| | | | | | | Dates |
+-------+-----------+----------+-----------+-----+---------------+-------------+
| | | | | | Mix of single | |
|Canada | Beauport | Acquired | 1,971,000 | 211 | family homes, | Jul. 2018 |
| | | | | | townhomes and | |
| | | | | | semi-detached | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
| |Kenney and | | | | | |
|Canada | Park, | Acquired | 180,624 | 144 | Apartments | Oct. 2018 |
| | Terrace | | | | | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
| | Grahame | | | | | |
|Canada | Avenue, | Acquired | 62,197 | 56 | Apartments | Dec. 2016 |
| | Terrace | | | | | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
|Canada | Kitimat | Acquired | 170,000 | 93 |Apartments and | Dec. 2017 |
| | | | | | town-homes | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
| | | | | | Mix of single | |
| | | | | | family homes, | |
| USA | Evans | Acquired |10,323,720 |1,200| townhomes, | Jan. 2021 |
| | | | | | semi-detached | |
| | | | | | and | |
| | | | | | condominiums | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
| UAE | MBR City, |MOU signed| 431,125 | 300 | Luxury | Aug. 2017 |
| | Dubai | | | | apartments | |
+-------+-----------+----------+-----------+-----+---------------+-------------+
Beauport, Quebec
Acquisition Date: October 2014
Size: 1,971,000 square feet
Project Description: The project consists in a mix of single family homes,
townhomes and semi-detached
Economic Catalyst: The project is located in the last qualified, low-density
construction area permitted in Quebec City for the next 10 years. Given the
scarcity of land in the area, we believe that housing inventory will be
constrained.
Project Status: The project, which is fully funded, is in its preliminary
stages. In the first quarter of 2016, we will begin putting together a
comprehensive development plan in collaboration with the town planner and
officials from Quebec. We expect development work to begin in the first quarter
of 2017.
Terrace, British Columbia
Acquisition Date: December 2014
Size: 180,624 square feet Kenney Street & Park Avenue & 62,197 square feet in
Graham Avenue.
Project Description: Two properties with 200 units being developed in
collaboration with Coast to Coast Holdings, Ltd. ("Coast to Coast"), a leading
Calgary-based construction and land development company with a focus on
commercial and residential construction for some of the largest projects in
Canada.
Economic Catalyst: British Columbia is experiencing significant economic and
demographic growth as a result of the emerging LNG industry. This has led to
higher demand for quality housing, which bodes well for the real estate
development industry.
Project Status: In December 2014, we completed our first project in Terrace,
selling 20,000 square feet of land and generating a return of over 50% from the
initial investment. Our investment's success provided us a strong introduction
to the market and helped us broaden our expertise for analyzing future
prospective projects in the area. With 30 mining projects having been announced
in North Western British Columbia, we are confident that there is a significant
opportunity to work with Coast to Coast to successfully develop additional
projects in this part of Canada.
At Graham Avenue, we are currently developing a project plan. Once the plan is
complete and financing is secured, Coast to Coast is expected to begin
construction in the fall of 2016. We are also in early negotiations to rent or
sell the apartments as an alternative strategy.
At Kenny Street and Park Avenue, the project plan is complete and we are
currently working to secure financing. Coast to Coast plans to start
construction in the fall of 2016. We are also in early negotiations to rent or
sell the apartments.
Kitimat, British Columbia
Acquisition Date: December 2014
Size: 170,000 square feet
Project Description: The project consists of 84 apartments and 9 townhomes.
Economic Catalyst: Similar to Terrace, the area around Kitimat is facing a
noteworthy housing shortage due to the tremendous economic and population growth
related to the construction of a number of LNG facilities in British Columbia.
Project Status: We have completed demolition work on the site and are finalizing
a construction loan. We anticipate beginning construction in September 2015.
Additionally, in May, we entered into an agreement with LNG Canada to develop
apartment and townhouse units in Kitimat. LNG Canada is a joint venture between
Shell Canada Energy, affiliates of PetroChina, Korea Gas Corporation and
Mitsubishi Corporation. LNG Canada intends to lease these units for its
workforce over a five year period. The first phase of the project, which calls
for 36 apartments and nine townhouses, is expected to be completed in May 2016.
LNG has executed long term leases for 35 apartments.
We view this agreement with LNG Canada as a positive step toward raising the
Company's profile and paving the way for larger opportunities.
Evans, Colorado
Acquisition Date: June 2015
Size: 9,583,200 square feet
Project Description: The project consists of over 1,200 lots, featuring a mix of
single family homes, town homes, duplexes, triplexes and condos. The Company
also plans to build a park as well as commercial and retail areas.
Economic Catalyst: Northeastern Colorado has a diverse economy, which has
benefitted from higher job growth rates relative to the rest of the United
States. This, combined with low property taxes, has resulted in a shortage of
high-quality, affordable housing and led to an increase in housing prices in the
area.
Project Status: We acquired the project in June 2015 and are working diligently
to raise $7.5 million in debt to finance development work. We have also entered
into a preliminary agreement to sell approximately one-third of the development
to Baessler Homes, a well-established and renowned local contractor that has
been in operation since 1968.
Project Update: We recently hired a seasoned project manager to oversee our
interests in Evans. This is a major step in this project and a practice we plan
to replicate for each of our other projects. In addition, we have agreed to
acquire an additional 1 million square feet of land in Evans. We are currently
in the process of completing our due diligence and expect to close on this
parcel during the third quarter 2015.
Sobha, Dubai
Acquisition Date: September 2015
Size: 431,125 square feet
Project Description: The project consists of over 300 apartments across three
high rises in the Sobha Hartland mixed-use development in Mohammed Bin Rashid Al
Maktoum City. The project is located just three kilometers from the world's
tallest building, Burj Khalifa, the largest shopping mall, The Dubai Mall, and
is in the vicinity of multiple other recognizable landmarks. ROI's plots are
extremely well located within Sobha Hartland, with full views of the world
famous Dubai skyline, overlooking lush, green parkland.
Economic Catalyst: Dubai continues to exhibit strong job growth, particularly in
banking, tourism and real estate. Preparations for the 2020 World Expo are also
helping to drive economic growth. With the country having some of the highest
average disposable incomes in the world, there is a demand for mid-level and
luxury housing. As a result, we are seeing a number of sophisticated and
successful real estate developers embarking on projects in Dubai, including
Donald Trump, whose Trump Estate luxury villa complex has already seen strong
interest from buyers, yet is located over 15 Kilometers away from downtown
Dubai.
Project Status: We are currently in the design phase, conducting market
analysis, site analysis, conceptualization and material use. Our initial market
analysis was well received by our local development partners. We intend to draft
a comprehensive design brief, which will lay the groundwork to begin
construction. Once we have a design brief, we will identify a contractor.
* * *
ROI Team
As we grow, it is crucial that we establish a solid corporate infrastructure and
strengthen our management team. Antonio Treminio, one of the Company's founders,
was recently named Vice President, Strategic Planning. In addition, we recently
appointed Martin Scholz, Peter Hoffman and Andreas Brand, all of whom will help
to build out our investor relations capabilities in Europe. We are excited to
welcome this group of talented and passionate individuals to the ROI family.
Each brings a unique set of skills and professional experience that should prove
invaluable. Looking ahead, we intend to continue adding exceptional individuals
to our ranks, across all roles, at both the board and corporate levels.
We remain committed to the continued execution of our operating strategy and
expansion of our project portfolio. We have identified additional opportunities
in Texas, where we are in the due diligence phase, as well as targets in Florida
and Canada. We are excited about the direction of our business and expect to
continue to make progress in the second half of 2015 and beyond.
We thank our shareholders and bondholders for their continued support. And as
always, if you have any questions or comments, feel free to reach out to
management.
Sincerely,
Philippe Germain
President & Co-Founder
About ROI Land Investments Ltd.
ROI Land Investments, Ltd. ("ROI") is a diversified real estate investment
company specializing in land development. ROI's business model consists of
acquiring attractive land developments free of zoning restrictions, obtaining
the necessary development permits, outsourcing the development of the
infrastructure and profiting from the sale of the subdivided land units to known
large regional developers.
SAFE HARBOR AND INFORMATIONAL STATEMENT
This press release may contain forward-looking information within the meaning of
Section 21E of the Security Exchange Act of 1934, as amended (the Exchange Act),
including all statements that are not statement of historical fact regarding the
intent, belief or current expectations of the company, its directors or its
officers with respect to, among other things: (i) the company's financing plans;
(ii) trends affecting the company's financial conditions or results of
operations; (iii): the company's growth strategy and operating strategy; and
(iv) the declaration and payment of dividends. The words "may", "would", "will",
"expect", "estimate", "anticipate", "believe", "intend", and similar expressions
and variations thereof are intended to identify forward-looking statements.
Investors are cautioned that any such forward-looking statements are not a
guarantee of future of future performance and involve risks and uncertainties,
many of which are beyond the company's ability to control, and that actual
results may differ materially from those projected in the forward-looking
statements, as a result of various factors including the risk disclosed in the
company's statements and reports filed with the US Securities & Exchange
Commission. The Company claims the safe harbor provided by Section 21E(c) of the
Exchange Act for all forward-looking statements.
For more information please visit our website: www.ROILandInvestments.com
Investor / Media Contacts:
KCSA Strategic Communications
Brad Nelson / Elizabeth Barker
212-896-1249 / 212-896-1203
bnelson(at)kcsa.com / ebarker(at)kcs
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ROI Land Investments LTD via GlobeNewswire
[HUG#1952343]
Unternehmensinformation / Kurzprofil:
Datum: 16.09.2015 - 12:00 Uhr
Sprache: Deutsch
News-ID 420549
Anzahl Zeichen: 19122
contact information:
Town:
Québec
Kategorie:
Business News
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