Cambrian Strathcona II LP

Alberta Investment

Development of 149 Acres Industrial Land in Alberta

Acquisition and development of 149 acres of land in Sherwood Park, Strathcona County, adjacent to Edmonton and Alberta’s Industrial Heartland.

The Property

Strategic location close to Alberta’s Industrial Heartland (aka “Upgrader Alley”) where bitumen from oil sands near Fort McMurray is upgraded to synthetic crude oil.  At least five new upgrader processing plants are under construction, seeking approval or are proposed.  See “Edmonton’s Upgrader Alley”.

 

Location is 17 km south of Fort Saskatchewan, along Hwy. 21, and is close to the intersection of Hwy. 21 and Hwy. 16 (Yellowhead Trail).

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This 149 acres is zoned AD Agriculture: Future Development.  The general partner anticipates the land will be re-zoned to IM (Medium Industrial).  The partnership has hired Focus Engineering to prepare a development plan for approval by Strathcona County.

 

The strategy is to acquire the land, develop an Area Structure Plan that specifically addresses the development of this property, and move it through the planning process to approval by Strathcona County. This will add significant value to the property before it is sold to a developer.

 

The limited partnership is acquiring this property from the developer at a cost of $8,000,000, or $54,000 per acre.

 

       

Area of Land: 

149 acres
     

Developable area:  

135 acres (estimated)
     

Cost of Land:      

$ 8,000,000
     

     per acre: 

$ 54,000
     

     per developable acre:  

$ 59,300
     

Vendor Take Back Mortgage:

$ 3,000,000 (at 6%)
     

Equity to be raised:

$ 5,000,000 (5000 partnership units)
     

Development Financing:

$ up to 2,000,000 (at 12%)


The Investment

Investors receive:

  • 50% of any capital appreciation.
  • No cash flow is anticipated from this pure development project.
  • Minimum investment (Units of $1,000):
            $50,000 for Accredited Investors*
            ($150,000 for non-Accredited Investors.)

* "Accredited Investor" means, in the case of an individual, either:
(a) someone whose net income in each of the last two calendar years exceeded $200,000 (or, if combined with that of a spouse, $300,000), and who reasonably expects to exceed that amount in the current calendar year, or
(b) someone who, either alone or with a spouse, owns financial assets having an aggregate realizable value that, before taxes, but net of any related liabilities, exceeds $1,000,000. The subscription documents include a work sheet to assist in defining financial assets.


The Manager

The general partner is Calgary-based Cambrian Strathcona II Development Corp., operated by Art Szabo and Don Rumpel.


The Documents