FRPL Finance Bond Sells Out in Record Time

the issuance of a 12%, 3 year bond by FRPL Finance (for a Fairmount Resort Properties recreational property development). We informed readers that, given the nature of the project and the features of the opportunity, investors could expect this offer to sell out quickly.

Within approximately one month of that announcement, the total dollars offered to the subscription actually exceeded the amount which could be accepted – leaving many investors unable to participate. Global Real Estate Investments has since learned that it was the largest contributor of investment resources to this opportunity.

We feel that an important factor behind the successful distribution of this bond is the recent stock market correction: investors are eager to rebalance their portfolios to include guaranteed returns, secured by real estate. As such, we can expect that similar investments (such as the bonds described in the prior section) may enjoy a similarly enthusiastic response from investors, and also sell-out quickly.

Investing in Canada’s Growth Corridors

Over the last year, Canada has experienced a slow-down in real estate activity, and specific regions are anticipating a decline in prices – especially in the residential housing market. Despite this general trend, analysts are reporting that attractive real estate related investment opportunities are still available. There are several factors behind this position.

First, Canada currently has two identifiable growth corridors: the Greater Vancouver/Fraser Valley corridor, and the Calgary/Edmonton corridor (the Greater Toronto Area/Southern Ontario corridor is not currently considered to be in growth).

Within these areas, populations are expected to continue to rise, and economic factors are considered to be relatively strong.

Second, demographic trends (such as an aging population) suggest that specific real estate related opportunities will arise: such as retirement/lifestyle communities, recreation/resort developments, etc. These may well be clustered within, or relatively close to, the identifiable growth corridors.

Third, where value can be added to the real estate (such as land development, or construction), additional investment-grade opportunities may exist. Unlike the acquisition of a completed house or condo, for example, which requires market forces and/or future speculators for increases in price, real estate development allows investors to profit from the inherent value added through the development and construction processes.