The CMCC Capital Fund invests in major urban centers in Ontario and B.C., particularly the Greater Toronto Area and Greater Vancouver Area, where the manager has established operations and has local market knowledge. We traditionally source off-market transactions through our team of nine underwriters across Canada.
Both residential and commercial real estate are considered, and could take the form of new or existing developments. These investments are in the form of mezzanine loans, preferred equity and/or equity. In addition, where opportunities are available, we purchase distressed debt or distressed real estate.
The Fund has numerous attractive investment attributes including reputation, established developer relationships, a strong management team with a proven track record, local offices in the target markets, and a history of attractive returns.
|Closing||September 30, 2016|
|Fund size||$66 million|
|Manager’s commitment||$4.5 million (6.8% of Fund)|
|Fund duration||Five years (excluding two-year investment period). Two one-year extensions, if necessary, will also be permitted for final repayment of all investments.|
|Leverage||Not to exceed 10% of equity investment.|
|Target returns (Gross)||13% - 18% on mezzanine loans, 18% - 25% on JV investments.|
|Target Investor returns (Net)||Minimum 15% per annum|
|Preferred return||8.0% per annum.|
|Management fees||a) 1.0% upfront origination fee on committed investments (one-time; where possible paid by project)
b) 1.0% management fee on committed investments (annual)
|Performance fee to manager||20% of net proceeds in excess of preferred return.|
|Parallel investment||Investors who commit at least $5 million have an option on a deal-by-deal basis, to invest along with the fund|