REDEV’SREDEV’S Real Estate Income Gain (REIG) Real Estate Income Gain (REIG)

ProgramProgram

Who is REDEV Properties Ltd?Who is REDEV Properties Ltd?

Principals of REDEV have over 20 years of experience in Real Estate development.

Developed over 1.2 billion dollars worth of residential and commercial real estate involving more than 11,000 units across Canada.

Successful and understand the complexities of real estate investing.

“Our mission is to provide buyers with long-term income and

investments that consistently outperform other investments in

their portfolio.”

REIG Mission StatementREIG Mission Statement

REIG ConceptREIG Concept70% of wealthy people have created their

wealth through Real Estate investing

The REIG, REAL ESTATE INCOME GAIN, makes commercial real estate investment opportunities available to the average investor.

It breaks a large investment down into smaller amounts and makes it easy to participate

How the REIG works:How the REIG works:

Prime commercial Real Estate in growing markets.

Extensive due diligence, arranging finance & legal work.

Investors become equity partners with REDEV on individual projects

REDEV makes cash-flow from commercial real estate easier to attain as it breaks down a large property into smaller parts (on paper) to interests of $25,000 CAD equity or higher.

Past ProjectsPast Projects

Castleridge Plaza completed 2003$12.2 million projectCalgary, Alberta Average annual return: over 11% after tax.

Dixie Road completed 2002$6.3 million projectMississauga, Ontario. Average annual return: over 10% after tax.

Newport Village Plaza completed 2005$12.3 million projectCalgary, Alberta Average annual return: 9.8% after tax.

Past ProjectsPast Projects

Shawnee Station completed 2005$9.275 million projectCalgary, Alberta Average annual return: over 8% after tax.

Trail South, Edmonton completed 2004$9.5 million projectEdmonton, Alberta Average annual return: over 8% after tax.

105th St Government Building, Edmonton

Completed 2005, average return: 9%

REIG Investment GoalsREIG Investment Goals

Safety of Principal

• Your principal is secured by the actual real estate

• Investors own the project• Investors are on Title as owners• Tangible Asset that you can actually visit• No risk-Asset is already built and

producing actual income today!

REIG Investment GoalsREIG Investment Goals Ease of Management

• All management decisions are looked after by General Partner - REDEV Properties Ltd.

• All property management is looked after by Property Managers

• No investor will ever be called upon to do anything

• True ‘Armchair’ investment

REIG Investment GoalsREIG Investment Goals

Income Producing

• Current income• Future income• Based on long term leases• Actual numbers, not projections• Actual Existing Asset

REIG Investment Goals

Liquidity• A secondary market exists• Protocol in which investment units

can be sold• Medium to Long term investment

Security

The REIG offers absolutely the highest level of security possible.

The investors own the Asset and are on title as such.

A third party accounting firm acts as Trustee for the investors. The Trustee handles all of the money, distributes the quarterly payments and issues all of the tax forms required for the partners.

The tenants pay triple net leases and carry the majority of the risk for the owners.

Residential vs Commercial

Rentals quoted monthly

Tenants have little interest in maintaining or improving the property

Leases are non-existent or tend to be very short

Tenants phone you for minor problems

You deal with people and their associated emotions

Leases quoted annually

Tenants have a strong vested interest in keeping the property well maintained

Leases tend to be long

Tenants fix minor problems

You deal with contracts that stipulate the remedies that the owners can take

Current Project: MacEwanCAD $4.33 Million 8.8% Average Annual Return

InvestorsInvestors Lawyers Trust Lawyers Trust AccountAccount ((InsuredInsured))

Registered Land Registered Land Title (freehold)Title (freehold)

Rental IncomeRental Income Humford Humford ManagementManagement

MortgagMortgage e PaymentPaymentss

AccountantAccountantIndividual Individual InvestorsInvestors ((InsuredInsured

))

((InsuredInsured))

General Partner General Partner Richard Crenian, Richard Crenian, President REDEVPresident REDEV

Structure of the partnershipStructure of the partnership

Residents of CanadaResidents of Canada

Limited Partners – form Limited Partners – form the collection of the collection of

investors in Canadainvestors in Canada

Non-ResidentsNon-Residents of Canada

- Each have their name on title

- Each have undivided interest with a share of

equity equivalent to their investment amount

Joint Joint Venture Venture

AgreementAgreement

Our Business PartnersOur Business PartnersLawyers:

Howard SloanGoldman, Sloan, Nash and Haber

Toronto, ON M5T 2Z5www.gsnh.com

Nan StevensonFirst Cdn center ste

Calgary, Alberta www.fieldlaw.com

Accountants:Allen Sloan C.A

Sloan Paskowitz Chartered AccountantsThornhill, ON L4J 1V9www.sloanca.com

Property Managers:Garry Hudson, CA

Darton Property Advisors and ManagersToronto, ON M5H 1X9

www.dartonproperty.com

David JudgeHumford Property Management Inc.

Edmonton, Alberta T5N 1R5www.humfordmgmt.com

Ken LucianovichHumford Management Inc.Calgary, Alberta T2P 3E8 www.humfordmgmt.com

Why Canada?

Foreigners have title in their own nameEstablished country with good clean

governmentStable political situationG8 leader in economy and growth

1st country to balance its budget in over 30 years

Most generous R&D incentives

Why Canada?

Educated, skilled and cost effective workforce

Superior transportation and telecommunication infrastructure

Supportive government policiesUN Survey: “Best Country to Live in” for the

7 consecutive yearsVoted 3rd most competitive country in the

world (2001)

Why Invest in Alberta?Why Invest in Alberta? GDP per Capita 2nd highest in world

According to a TD economic report the Calgary-Edmonton GDP reached $40,000 USD per capita in 2000, exceeded only by the GDP of Luxembourg

GDP is 10% higher than the average for the USA GDP is 40% higher than for the rest of Canada Over the past decade, growth in real GDP in the Calgary-

Edmonton Corridor averaged 4.2% per year, 1 percentage point above both the Canadian and U.S. averages

Fastest Job Creation in North America Average annual job creation was one of the fastest in North

America over last 10 years TD Report calls this area 'Canada's Western Tiger':

"Given all of its assets, the Corridor has enormous potential - not only to widen its economic lead in Canada further, but to become the most prosperous and the best place to live in all of North America."

Why Alberta? Natural resources found in

AlbertaWorld’s 10th largest

exporter of oilWorld’s 3rd largest

exporter of natural gasWorld’s largest producer

of Sulphur Strong efficient

government: Ralph Klein

SCMP - August 3SCMP - August 3rdrd 2005 2005Alberta HousingAlberta Housing

Average Residential Selling Price in Edmonton 1962 to 2004

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000

Year

1964

1967

1970

1973

1976

1979

1982

1985

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1991

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1997

2000

2003

Year

Ave

rag

e V

alu

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Average Selling Price

Toronto

Edmonton Average Residential Selling Price 1991 - 2004

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

1991

1992

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1994

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1996

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2001

2002

2003

Edmonton AverageResidential SellingPrice

SCMP – August 8SCMP – August 8thth 2005 2005

CAD$34Billion spent on oil sands in the past 3 decades.

2-3 times that will be spent over the next decade

Budget Surplus

The Alberta government is committed to living within its means.

Alberta has the highest surplus as a percentage of GDP in 2003-04.

Net Surplus around CAD 15 Billion

Business Orientated

Fraser Institute's measure of economic freedom (which indicates the fostering of economic growth and prosperity through minimal government regulation and taxation) rates Alberta number one in Canada as a place to do business.

Financial Advantage

Alberta is the top province in Canada for credit worthiness. All major rating agencies (Standard and Poor's, Moody's, and Dominion Bond Rating Service) give Alberta "Triple A", the highest possible rating.

Potential of CalgaryPotential of CalgaryMajor Category Vancouve

rToronto Calgary

Economic Growth Rate 2 3 1

Greatest Investment/Capita on Education

2 3 1

Most Educated Population 2 3 1

Best Employment Rate 2 3 1

Highest Productivity Rate 2 3 1

Best Income Tax Rate 2 3 1

Lowest Retail Sales Tax 2 3 1

Greatest Investment/Capita

2 3 1

Best Real Estate Value/Sq Ft

3 2 1

Most Pleasant Climate 1 3 2

Best Overall Quality of life

2 3 1

CalgaryCalgary

Financial Hub for Western CanadaCanadian Venture Exchange (Merger

between Alberta & Vancouver Stock Exchange)

2nd Largest Concentration of Multinational Headquarters in all of Canada

Population: 900, 000 - Growing rate of 2.2%

CalgaryCalgary

Highest educated workforceLow unemployment rate 200, 000 new homes needed to meet

growing economyAverage of C$175, 000 per home

Increase in house prices approx 24% over last 4 years

Commercial vacancies: below 3% Industrial vacancies: below 2%

Calgary

Calgary

Invest TodayInvest Today

Equity Partnership Units are $25,000 per unit.You may purchase larger amounts

Average Annual returns of 8-10% plus capital gain