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Cambrian Strathcona Syndicated Mortgage
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Mortgage on Land Held for Development in Alberta
Second mortgage placed on 152 acres of development land in Sherwood Park, Strathcona County, adjacent to Edmonton and Alberta's Industrial Heartland. Mortgage terms: 12% p.a., paid quarterly, up to 36 month term. Funds will be used to pay for costs of developing the land.
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).
This 152 acres is zoned AD Agriculture: Future Development. The owner anticipates the land will be re-zoned to Light Industrial, and has engaged Focus Engineering to prepare a development plan for approval by Strathcona County.
The owner's strategy is to obtain rezoning and development approval, then sell zoned, subdivided parcels to builders, developers and users. Minimum lot size for these parcels will be 1.0 acre. The funds borrowed under the mortgage will be used to pay the costs of developing the land, including planning and engineering fees, municipal fees, and so on.
An independent appraisal has placed the value of this property at $55,000 per acre, following the direct comparison approach.
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Area of Land: |
152 acres |
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Developable area: |
120 acres (estimated) |
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Cost of Land: |
$ 7,000,000 |
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per acre: |
$ 46,000 |
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Appraised Value: |
$ 8,360,000 |
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per acre: |
$ 55,000 |
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Equity: |
$ 4,000,000 |
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Vendor Take Back Mortgage: |
$ 3,000,000 |
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Syndicated Mortgage: |
$ 3,000,000 for development financing |
This investment is RRSP eligible. You may transfer RRSP funds into this investment, you may make a new RRSP contribution, or you may simply invest directly. Olympia Trust Company of Calgary will be the trustee for your self-directed RRSP.
The Investment
- 12% interest on capital invested. Interest is paid quarterly.
- Term of Investment: 12 – 36 months. This is a 36 month mortgage, open for repayment by the borrower any time after 12 months without penalty.
- RRSP eligible.
- Minimum investment (Units of $1,000): $10,000.
The Manager
The administrator of the mortgage is Quadra Financial Corp., which is owned by a company controlled de facto by Art Szabo and Don Rumpel. The general partner of the partnership that owns this property is Calgary-based Cambrian Strathcona Development Corp., operated by Art Szabo and Don Rumpel.
The Documents
- Download entire package (3.2 MB PDF).
- Offering Memorandum available upon request.
- Subscription Documents are available to qualified investors, upon request (Contact us).