Cambrian Strathcona IV LP

Alberta Investment

 

Development of 156 Acres Industrial Land near Alberta’s Industrial Heartland 

  

Profit from the creation of a 725-acre master-planned industrial park in Sherwood Park, Strathcona County, adjacent to Edmonton and Alberta’s Industrial Heartland.

 

  • Projected ROI: 30%+ p.a.
  • Released June 2008
  • Minimum Investment: $25,000

The Property

Strategic location by 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"

 

Sherwood Park, Strathcona County, Alberta, approximately 1 mile east of Edmonton, at intersection of Hwy. 21 and Hwy. 16 (Yellowhead Trail). Go to Maps

 

156 acres, zoned AD Agriculture: Future Development. General Partner anticipates rezoning to IM (Medium Industrial).

 

The Strategy

Participate in completion of the remainder of the process for approval by Strathcona County ofthe Area Structure Plan(“ASP”) for a large, strategically-located industrial park.

 

Approval of the ASP will add very significant value to the property before it is sold to a developer that will then be in a position to develop the industrial park further by adding the roads, services and infrastructure in accordance with the ASP.

 

The approval process is already well underway. In early 2007, the developer began the process for creation and approval of a single Area Structure Plan covering multiple contiguous properties totaling more than 725 acres, and this parcel is included in that proposed ASP. Development expenses are shared by the owners of six contiguous properties. One of the other participating owners is Cambrian Strathcona II LP, which London Pier Properties offered investors until it sold out in Q3 2007.

 

Geotechnical, environmental, biophysical, engineering and traffic studies have been completed, and the proposed Area Structure Plan is already being considered by Strathcona County.

 

The Numbers

The general partnerreports that it expects the partnership will achieve a sale of this land as early as 2009. The targeted exit price is $150,000 per acre, which is a number well supported by the sale of comparable acreages in the vicinity.

 

 

       

Area of Land: 

156.64 acres
     

Cost of Land:      

$ 11,748,000
     

     per acre: 

$ 75,000
     

Vendor Take Back Mortgage:

$ 3,927,000 (at 6%)
  Working Capital: $ 679,000
     

Equity to be raised:

$ 8,500,000
     

Target sale price per acre:

$ 150,000
  Projected Gain on Investment:    52% over 1 – 2 years.

 

Investment

Investors become Limited Partners in the partnership that will own the property.
Limited Partners receive 40% of any profit or capital appreciation.
Minimum investment (Units of $1,000): $25,000
Open to residents of BC, Alberta, Manitoba.

The Manager

The general partner is Calgary-based Cambrian (Strathcona IV) Development Corp., of which Art Szabo and Don Rumpel are directors. Focus Corporation is the lead consultant in relation to development of the ASP.

The Documents