Simcoe Development Fund LP

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LAND DEVELOPMENT in Simcoe County – South Central Ontario

The Fund

ASG Financial Corp and Simcoe Canada Land Development Inc. are together offering investors the opportunity to participate in the booming residential housing market in the Simcoe region of South Central Ontario. This is a new fund of $4,625,000 to $6,000,000 to be used to identify and develop land for sale to residential home builders. Investors will become limited partners.

These development projects involve purchasing the land and creating serviced (roads, water, hydro, sewers) residential building lots, then selling them to builders.

The land is purchased using fund monies and vendor take-back mortgage loans (VTB).

Profits will be distributed to investors, while their initial capital will be reinvested in new projects for a period of 5 years.

Nevertheless, an individual investor may elect to withdraw capital at the conclusion of each project. Therefore, the term of this investment can be as short as three years.

The Projects

The first three projects have already been identified: Bass Lake, Alcona, and Elmvale.

Bass Lake – Township of Severn (formerly, Orillia).

Approximately 41 acres to be developed into 40 serviced residential building lots and 1.7 acres of commercial land.

 

Land to be acquired from Simcoe for $2,000,000 (approximately 95% of fair market value as of November 1, 2005). A third party appraisal will establish the fair market value. Required Equity: $1,400,000. VTB loan: $600,000.

 

Simcoe will invest $375,000 of the proceeds back into the project as working capital at prime plus 2%, and this will not be repaid until after investors have first received their capital and Investors First™ Preferred Return.

 

Projected completion of project and sale to builders by June 2007.

 

Projected annualized returns to investors: 27% simple interest.

Alcona – Town of Innisfil.

Approximately 19 acres to be developed into 75 serviced residential building lots.

 

Land to be acquired from Simcoe for $3,000,000 (approximately 95% of fair market value as of November 1, 2005). A third party appraisal will establish the fair market value. Required Equity: $700,000. VTB loan: $3,000,000.

 

Simcoe will invest $625,000 of the proceeds back into the project as working capital at prime plus 2%, and this will not be repaid until after investors have first received their capital and Investors First™ Preferred Return.

 

An agreement to sell the serviced lots is already in place.

 

Projected completion of project and sale to builders by August 2007.

 

Projected annualized returns to investors: 20% simple interest.

Elmvale – Town of Springwater.

Approximately 27 acres to be developed into 134 serviced residential building lots.

 

Land to be acquired for ~ $3,700,000 from a third party. Required Equity: $2,300,000. VTB loan: $700,000.

 

Simcoe will be entitled to a $350,000 due diligence and acquisition fee (included in the purchase price of $3.7M).

 

Projected completion of project and sale to builders by mid-2008.

 

Projected annualized returns to investors: 40% simple interest.

The partnership will hold a right of first refusal in respect of every new opportunity identified by Simcoe Canada Land Development Inc.

The Investment

Projected annualized returns for the first three projects: 27%, 20% and 44%. (See Investors Return on Equity in the Executive Summary).

Investors receive:

• 12% cumulative Investors First™ Preferred Return.
• 50% of any excess cash flow.

Minimum investment: $25,000 (Units of $1,000).

The Developer

Simcoe Canada Land Development Inc. will act as the developer. Its experienced principals are Jack Zafrani and Igal Sudman. Simcoe has focused its development efforts in Simcoe County, and has a proven track record.

The manager will invest a minimum of $500,000 and its capital will be subordinated to investors' capital.

Simcoe will be guaranteeing the debt financing on each development.

The Documents

Executive Summary (580 kb PDF -- 3rd Quarter, 2006)

Offering Memorandum (204 kb PDF -- Updated March 1, 2006)

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