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Urbing Ventures Corp.

URBING REIT

What is a REIT?

A Real Estate Investment Trust (REIT) operates by providing investors with an efficient, tax-advantaged, property investment vehicle. REITs are able to effectively reduce or eliminate corporate income taxes by redistributing at least 90% of their taxable income to investors in the form of dividends. Taxes are then paid by individual shareholders on any dividend income or capital gains earned through the REIT. In essence, a REIT is able to maximize the investors’ potential gains by minimizing the tax burden of the investment.

REITs were first introduced to Canada in 1993 as the real estate equivalent to stock market mutual funds. Since then, the REIT market in Canada has grown and evolved to become an effective means of accessing real estate assets for individuals at all levels of wealth and background. As such, over the years, REITs have become an integral component of many investor portfolios.

UREIT

URBING Ventures Corp. have established a private real estate investment trust to acquire multi-unit, residential rental-income properties to generate sustainable income and capital appreciation for the benefit of all investors. The primary source of the developments held within the UREIT are projects completed under URBING’s LLP syndicated investment structures.

The UREIT Structure

  • The Trust is resident in Canada.
  • The interests of the Investors in the Trust are in units of the Trust that are identical in all respects (the “Units”).
  • No individual investor or group of investors who do not deal with each other at arm’s length shall hold more than 30% of the units of the Trust.
  • An unlimited number of Units may be issued.  Each Unit is transferable and represents an equal, undivided, beneficial interest in any distribution from the UREIT; whether of net income, net realized capital gains or other amounts; and in the net assets of the UREIT in the event of termination or closure.
  • All Units are of the same class with equal rights and privileges.
  • The initial issue price is $1,000 per Unit with a minimum subscription per investor of $25,000.
  • Subject to the terms of the Trust Agreement, Units are redeemable at any time on demand by the Unit holder(s).
  • Costs for property management of assets owned by the Trust shall not exceed the industry average.
  • Annual Trustee and management fees are based on the cumulative capital raised by the Trust and are only payable out of the annual net profit of the Trust. Incentives are in place for management to achieve annual net profit in excess of 12% of the Trust’s assets.
  • The Trust will pay out 95% of its profit (determined in accordance with Canadian GAAP) pro rata to Unit holders on an annual basis, via monthly dividends, and are reconciled within 120 days of each calendar year end.