Contact Information
State Street Financial Centre
Suite 301, 30 Adelaide St. E.
Toronto, ON M5C 3H1
416.365.3535
alternativesinfo@dream.ca
www.dreamalternatives.ca
Dream Hard Asset Alternatives Trust (“DAT” or the “Trust) (TSX:
DRA.UN) is an open-ended trust that is focused on hard asset
alternative investments including real estate, real estate lending and
infrastructure, including renewable power.
Michael Cooper
Portfolio Manager, DAT
CEO, DREAM Unlimited Corp.
Pauline Alimchandani
The Trust has approximately $720 million of net assets comprised of:
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CFO, DREAM Unlimited Corp.
Commercial income producing properties co-owned with Dream
Office REIT (TSX: D.UN);
Real estate loans with fixed interest payments and terms;
Limited partnership equity investments in retail real estate
properties;
Renewable Power investments
Equity and participating mortgage and co-ownership investments
in retail and residential development projects; and
Short-term investments.
James Eaton
President, Weatons Holdings Ltd.
Michael Cooper
Portfolio Manager
Joanne Ferstman
Corporate Director, Former President & CEO,
Dundee Capital Markets Inc.
Jane Gavan
President, Asset Management, DREAM
CEO, Dream Office REIT
CEO, Dream Global REIT
The Trust is managed by Dream Asset Management Corporation
(“DREAM”), an innovative real estate manager and developer
primarily focused on the commercial and residential sectors in
Canada and Germany and renewable power in Canada.
David Kaufman
CEO, Westcourt Capital Corporation
For more information, please visit www.dreamalternatives.ca.
Cecilia Williams
Vice President, Finance
Andrew Lapham
Executive Advisor, The Blackstone Group
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Provide an opportunity for Unitholders to invest in a diversified
portfolio of hard asset alternative investments, including real
estate, real estate loans, and infrastructure, including renewable
power, managed by an experienced team with a successful track
record;
Build and maintain a growth-oriented portfolio of real estate,
real estate lending and infrastructure (including renewable
power) assets;
Provide predictable and sustainable cash distributions to
Unitholders on a tax efficient basis; and
Grow and re-position our portfolio to increase our overall
average risk-adjusted rate of return, providing the opportunity
to increase distributions to Unitholders over time.
If you have any questions or require further information, please visit
our website or contact us by e-mail, info@dreamalternatives.ca.
Manages approx. 60 million square feet of commercial properties
across three publicly listed REITs
Develops approx. $400 million per year of residential land and
housing
Has developed approx. $300 million a year in renewable power
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Dream will support DAT with:
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Investment of up to $50 million in DAT over the next 3 years
Quarterly financial statements and AGM
Marketing to institutional investors and targeting research coverage
DAT will be a stand-alone business with its own governance, brand and
website
$14.7 Billion of Assets Under Management
Dream Office
REIT (TSX:
D.UN)
Dream Global
REIT
(TSX: DRG.UN)
Dream
Industrial REIT
(TSX: DIR.UN)
Dream Hard Asset
Alternatives Trust
(TSX. DRA.UN)
Largest Office
REIT in Canada
Largest
Global REIT in
Canada
One of the
Largest
Dedicated
Industrial REITs
in Canada
“Best of DREAM”
Fund for New
Opportunities for
Hard Asset
Investments
Land
Development
Housing and
Urban
Development
Renewable
Power
Contact Information
State Street Financial Centre
Suite 301, 30 Adelaide St. E.
Toronto, ON M5C 3H1
The Trust provides Dream with the opportunity to combine all of its
activities, relationships and expertise into one fund that can deliver
an initial expected yield of 4.0% (on net asset) plus growth in yield
and/or assets and capital appreciation.
DAT can invest in:
• Income properties
• Real estate loans
• Real estate development; and
• Infrastructure (renewable power)
Conceptually, we see the following allocation as an ideal portfolio
mix for the Trust:
Real Estate Development
Development
Loans
Income
Properties
33%
33%
416.365.3535
alternativesinfo@dream.ca
www.dreamalternatives.ca
Real estate investing in income properties is cyclical but, historically, has
generally provided attractive risk-adjusted returns. We anticipate
diversifying the income property portfolio over the next few years to
diversify risk and enhance risk-adjusted returns.
Infrastructure and renewable power investments are equity investments
with long-term financing, long-term contracts and returns that are
generally higher than real estate loans or equity when equity investment
is made prior to development. The renewable power sector is relatively
new in Canada, although it has a long history elsewhere in the world.
Contracts for renewable power are typically with entities having a low
credit risk and provide for the delivery of power at a fixed rate for
between 20 and 25 years. These investments provide stable, long-term
and fixed-income like cash flows, and are generally only made available
to pension funds and institutions. The construction costs for renewable
power assets are relatively predictable and the debt is usually limited in
resource to the particular asset. We expect to benefit from Dream’s
involvement and expertise in this industry over the last eight years,
through which it has developed relationships with developers,
manufacturers and lenders and a track record of identifying attractive
transactions and executing on them.
Traditional
Loans
33%
Renewable Power
DAT’s distributions are paid on a monthly basis. DAT’s estimated current
annual distribution rate will be $0.40. Management estimates that, of the
monthly cash distributions to be made by the Trust to Unitholders,
approximately 75% in 2014 and approximately 90% in 2015 will be tax
deferred.
Our Distribution Reinvestment and Unit Purchase Plan (“DRIP”) provides
Unitholders of DAT with a convenient way of investing in additional units
without incurring transaction costs. Unitholders registered in our DRIP
program are eligible to receive a “bonus” distribution of Units equal to
4% of the amount of cash distribution reinvested. For example, for every
$1.00 of cash distribution reinvested, the Unitholder is entitled to receive
$1.04 worth of DAT Units.
To enroll in the DRIP, please contact your dealer, bank, broker, investment
advisor or other intermediary through which the Units are held.
Real estate development can range from renovation and re-leasing of
existing assets to acquisition of raw land for new development. DREAM is
very active in the development business and has its own engineers,
construction managers, development officers and marketing officers on
staff.
Our real estate lending activities will range from low ratio first mortgages,
to second mortgages, mezzanine loans, equity loans, development loans
and bridge financing. The returns vary based on the risk level of the
secured asset, the leverage on the asset and the competitive lending
environment at the time of making the loan. Real estate loans have
traditionally been a private investment that provides returns that are
significantly higher than government bonds. Development loans and
development equity have historically provided very attractive returns. We
believe that we will benefit from Dream’s position as an active developer
itself, such that the risk of such development loans will be reduce for us,
particularly given the expertise of Dream’s in-house marketing,
construction, finance, development and engineering professionals.
Traditional real estate lending will be valuable by providing a base return
while we seek opportunities with more desirable risk-adjusted returns. In
addition, we believe that maintaining an allocation to traditional real
estate lending provides more certain returns during economic
uncertainty.