Investment Rationale


The Land Appreciation Process

1. Undeveloped Land

Land that sits away from or adjacent to development. The land has no man-made improvements, and is not serviced.

2. Surrounding Development

As the urban population grows, it must spread into the neighbouring country side. After the city forecasts population growth, current raw land inventory, taking into account several social, environmental and economic factors, the City of Calgary plans its expansion. The method in which the city expands its boundaries is called annexation.

The annexation process takes a minimum of three years to complete. The general public and other stakeholders are consulted and significant input is obtained that may cause further delays in the annexation process.

Fish Creek West land has already been annexed into the City of Calgary. With the annexation process complete, the risk of
non-development is significantly reduced. Given these factors, this is an opportune time to invest.

After annexation is complete, the city begins work on an Area Structure Plan (ASP). This plan sets out the general framework for the land use and future subdivision of an area of undeveloped land. Any future development that will occur on the lands, must take its queue from the Area Structure Plan.

3. Under Development

As the market for additional residential an commercial property dictates, developers purchase lands adjacent to current development. The developer will connect the services, organize roadways and lighting, and make community concepts a reality.

4. Post Development

The urban landscape as we know it.

Use the Land Appreciation Process to your Advantage

Entrance

This is where you the investor joins the process and become an owner, with title, to the undivided interest of the land.

Hold

While similar projects will include the development of the lands within the term of the investment, Fish Creek West follows a different strategy. As adjacent development occurs, the land value will appreciate, without excessive risk and cost to the owner, associated with planning and development process for less strategically located lands. Conservative estimates place this holding term at five to 10 years.

Exit

Fish Creek West land will become a valuable component to the post-developed area and offers to purchase the land will be received. When an offer is accepted by no less than two-thirds of the undivided unit owners, the land is then sold.