Vancouver, BC (May 17, 2017) — Churchill Real Estate Investment Trust (the “Trust”) is pleased to announce today it has met all of the prerequisites and has satisfied all of the prescribed conditions for Mutual Fund Trust status. Units of the Trust are now deemed qualified investments for RRSPs, TFSAs, RRIFs, RESPs and other registered tax deferred plans under the Income Tax Act (Canada).
This marks an important milestone for Churchill REIT as the ability to purchase units into registered plans significantly expands the Trust’s pool of potential investors. According to The Investment Funds Institute of Canada (IFIC), approximately 55% of the assets managed by IFIC members are held within registered plans.
Other tax advantages that accrue to securities with mutual fund trust status, include the capital gains refund mechanism, exemption from the alternative minimum tax rule, and exemption from the 21-year deemed disposition rule.
Churchill REIT is a non-exchange traded, open-ended, real estate investment trust and a flagship fund of Churchill International Property Corporation. It has been carefully designed to provide unitholders with stable quarterly cash distributions, long-term capital growth on a tax efficient basis, and no-penalty liquidity at net asset value (“NAV per Unit”) after 5 years. The REIT will also benefit from no exposure to stock market volatility as the units are not listed on a stock exchange. The REIT will offer an unlimited number of units on a continuous basis, with closings that correspond to the acquisition of target properties. The REIT is currently distributing a cash yield of five-percent (5%) per annum, with a target cash yield of six to seven-percent (6 to 7%) per annum. The intent is to grow the asset base of the REIT substantially in 2017 and beyond.
About Churchill International Property Corporation
Founded in 1989, Churchill International Property Corporation (CIPC) is a full-service real estate asset management and investment company and a successful sponsor of over twenty-five Real Estate Limited Partnerships. In 2016, CIPC officially launched a new flagship fund — Churchill REIT — an open-ended, private Real Estate Investment Trust. Churchill has a long track record of successfully syndicating public and private real estate offerings, and has raised $450 million in equity with the participation of more than 4,500 individual and institutional investors. With over $1 Billion in successful real estate acquisitions, financing, development, management and dispositions, Churchill is proud of the fact it has never lost one dollar of investors capital, while achieving an average IRR of 14.6% on completed funds. The principals of the company – Philip Langridge and Brad Wise – have a combined 70 years of international commercial and residential real estate experience. The company currently has more than $250 million in investment-grade assets under management and is focused on making opportunistic acquisitions in select North American markets that will provide its investors with consistent, stable cash flow and capital appreciation. The company prides itself on the highest standards of business ethics and professionalism. Preservation of Capital is The Golden Rule.