Centurion Apartment REIT (“Centurion REIT”) is a private REIT that operates with the primary goal of acquiring and managing a diversified portfolio of multi-residential apartments and student housing in the Province of Ontario. Properties are generally in secondary markets often near universities and/or employment hubs. Buildings are generally between 20 and 45 years old but more recently, a number of newer buildings have been added to the portfolio. This trend is likely to continue which will result in lowering the average age of buildings in the portfolio.
In the REIT’s areas of business focus, there is generally a lack of new construction. Multi-residential and student housing properties in this marketplace are thought to be undermanaged and have higher capitalization rates than core markets. The portfolio AS AT December 2018, consisted of 6,329 residential suites. Centurion may also acquire and manage mortgage investments from time to time. While mortgages haven’t traditionally been their primary focus, management has recently focused efforts in this area, which also has the benefit of securing a future pipeline of new-build apartments through first right of refusal arrangements on their development loans (particularly in the Centurion Real Estate Opportunity Trust “REOT”).
As is the case with most investment opportunities, there is a risk that investors could lose some or all of their capital invested. Please see the possible risk areas highlighted in our comprehensive due diligence and analysis of this investment which is available to interested and qualified investors, on request. In our opinion investors should only consider these investments if they have a minimum of 3 to 5+ year time horizon as real estate investments are inherently illiquid and tend to benefit from longer holding periods. Prospective Investors are referred to the Offering Memorandums, Risk Acknowledgements, and Subscription Agreements for more information. Prospective investors should also note that past performance is no indication of how these investment offerings may perform in the future.
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