A conservative short-term commercial mortgage strategy. Trez Capital Prime Trust participates exclusively in first position mortgages, or sub-tranches of first position mortgages, which have a maximum loan-to-value ratio of 75% at the time of funding.  Loans may be secured by real property located in Canada or the United States to a maximum of 25% of the portfolio.  The investment objective is to preserve capital, while generating a consistent rate of interest income for distribution to unitholders.

Fund Summary

Fund Manager: Trez Capital Fund Management Limited Partnership
Asset Class: Open-ended pooled mortgage fund
Inception Date: January 2006
Redemptions: 30 days' notice, subject to 1% retraction penalty if redeemed within 1st year
Eligibility: RRSP / RRIF / TFSA / RESP / RDSP / DPSP
FundSERV Codes: Series I - TRZ420
DRIP Eligible: Yes
Fund Assets (12/31/2016): $51,928,322

Case Studies

  • Ritz Carlton
     
    Ritz Carlton
    Loan: $5,240,000 participation in $26,200,000 loan
    Term:12 months
    Interest Rate:7.75%
    Loan-to-Value:53%
    Description:
    Investment in a 1st blanket loan to be secured by 19 un-sold condo units and 24 parking stalls in the project known as The Residences at the Ritz-Carleton hotel in Montreal.
  • West 41st Ave
     
    West 41st Ave
    Loan: $3,500,000
    Term:13 months
    Interest Rate:6.50%
    Loan-to-Value:64%
    Description:
    Investment in a 1st mortgage loan to develop 15 townhomes on West 41st and 2.5-storey townhomes on Woodstock Avenue. The project will also consist of a 19-stall underground parking garage.
  • Radisson Hotel
     
    Radisson Hotel
    Loan: $20,000,000
    Term:25 months
    Interest Rate:7% or HSBC Prime Rate + 4.30%
    Loan-to-Value:73%
    Description:
    Investment in a 1st Mortgage acquisition loan secured by a 210,000 sf, 9-storey hotel with 240 rooms located on a 3.5 acre site.
  • Vancouver Commercial Repositioning
     
    Vancouver Commercial Repositioning
    Loan: $2,700,000
    Term:25 months
    Interest Rate:Greater of 6.75% and P + 3.75%
    Loan-to-Value:64%
    Description:
    Investment in a first mortgage secured by a 6,100 s.f. industrial building to be repositioned as a 23,400 s.f. commercial property.
  • Calgary Industrial Acquisition
     
    Calgary Industrial Acquisition
    Loan: $13,100,000 (Tranche B: $2,300,000)
    Term:19 months
    Interest Rate:7.50% (on B Tranche)
    Loan-to-Value:24% (on B Tranche)
    Description:
    Investment in the B tranche of a first mortgage secured by two light industrial assets totalling 134,300 s.f. of net leaseable area.
  • Toronto Mixed Use Development
     
    Toronto Mixed Use Development
    Loan: $12,000,000 (Tranche A: $3,000,000)
    Term:25 months
    Interest Rate:6.0% (on A Tranche)
    Loan-to-Value:19% (on A Tranche)
    Description:
    Investment in the Senior (A) tranche of a first mortgage secured by a retail / office building, zoned for higher density.

Portfolio Composition

Mortgage Loan Portfolio $54,936,400
Cash (and Equivalents) 0
Other Assets $786,472
Total Fund Assets $55,722,872
No. of Mortgage Investments 25
Average Mortgage Size $2,197,456
Weighted Average LTV 61.9%

Geographic Region

Alberta
30.3%
British Columbia
27.8%
Ontario
13.9%
Texas
12.9%
Quebec
8.4%
Florida
5.3%
Cash and Other Assets
1.4%

Asset Class

Residential
63.3%
Retail
14%
Industrial
12.5%
Mixed Use
5.2%
Hotel
3.6%
Cash and Other Assets
1.4%

Security Rank

First Mortgages
102.1%
Cash and Other Assets
-2.1%

Weighted Average Term to Maturity

Month-to-Month
7.3%
1 Day - 90 Days
15.7%
91 days - 120 Days
0%
121 Days - 240 Days
33.1%
241 Days - 365 Days
11.8%
Over 365 Days
32.1%

Historical Performance

  1 Year 3 Year 5 Year Since Inception
Trez Capital Prime Trust
Series I
5.7% 5.9% 6.2% 7.9%

1 I Series returns are reported as F Series returns, plus 35bps to account for the reduction in management fee. To discuss eligibility, please contact Trez Capital Fund Management Limited Partnership.

2 Due to the inception of the fund in January 2006, the return for 2006 is an annualized return.

Growth of $10,000

 

Trez Capital Prime Trust distributes 100% of its net income annually.  Unitholders receive quarterly distributions at a rate of 1.0% on Series I units, payable fifteen days following each calendar quarter end.  All residual income is distributed by way of an annual top-up distribution, which is paid in mid-March following the conclusion of the annual audit of the Trust.

DISTRIBUTION HISTORY

Year Series Q1 Q2 Q3 Q4 Total Quarterly Distribution Top-up1 Annual Distribution
2015 I2 $0.100 $0.100 $0.100 $0.100 $0.400 $0.065 $0.565
2014 I2 $0.150 $0.150 $0.100 $0.100 $0.500 $0.072 $0.572
2013 I2 $0.150 $0.150 $0.150 $0.080 $0.530 $0.071 $0.601
2012 I2 $0.150 $0.150 $0.150 $0.150 $0.600 $0.076 $0.676

1 Based on a weighted average return to Unitholders, this amount is an estimate of the average top up distribution paid. Those invested for less than a full one year period will receive a prorated allocation, and those invested in the dividend reinvestment plan will receive a slightly higher top up due to the effects of compounding.

2 I Series returns are reported as F Series returns, plus 35bps to account for the reduction in management fee. To discuss eligibility, please contact Trez Capital Fund Management Limited Partnership.

 

DISTRIBUTION SCHEDULE

  Record Date Expected Pay Date
First Quarter March 31 April 15
Second Quarter June 30 July 15
Third Quarter September 30 October 15
Fourth Quarter December 31 January 15
Annual Top Up December 31 March 15

Note: Distributions are taxed in the year that they are earned. T3 slips are distributed to all unitholders in March of each year following completion of the year end audit and payment of the annual top-up distribution.

 

Fees

Management Fee Percentage negotiated by the Manager and the Unitholder of the Average Annual Gross Assets of the I Series units.
Incentive Fee 10% of the Net Income for each unit series after deduction of the Management fee.

Minimum Investment

To discuss minimum investment amounts and eligibility, please contact Trez Capital Fund Management L.P.

 

How To Invest

Institutional Investors form a core part of our investor base.  As investors seek ways to diversify away from equities and traditional fixed income to both enhance income while mitigating risks, alternative investments such as private mortgage pools provide for an attractive solution.

To learn more about our private mortgage pools for institutional clients please contact:

Michael Steepe, National Sales Manager
P: 647-788-1783
E: Michaels@trezcapital.com

 

Fund Fact Sheets

  • Fund Fact Sheet (I Series)

    Fund Fact Sheet (I Series)
    December 2016 - Trez Capital Prime Trust Fund Fact Sheet (I Series)
    View/Download »
  • Fund Fact Sheet (I Series)

    September 2016 - Trez Capital Prime Trust Fund Fact Sheet (I Series)
    View/Download »
  • Fund Fact Sheet (I Series)

    June 2016 - Trez Capital Prime Trust Fund Fact Sheet (I Series)
    View/Download »
  • Fund Fact Sheet (I Series)

    March 2016 - Trez Capital Prime Trust Fund Fact Sheet (I Series)
    View/Download »

Quarterly Unitholder Reports

  • December 2016 Quarterly Report

    December 2016 - TCPT Quarterly Report
    View/Download »
  • September 2016 Quarterly Report

    September 2016 - TCPT Quarterly Report
    View/Download »
  • June 2016 Quarterly Report

    June 2016 - TCPT Quarterly Report
    View/Download »
  • March 2016 Quarterly Report

    March 2016 - TCPT Quarterly Report
    View/Download »
  • December 2015 Quarterly Report

    December 2015 - TCPT Quarterly Report
    View/Download »

Subscription Documents

  • Institutional Investor Application Form

    May 2016 - Fund Application form for Institutional, Pension Plan, or Investment Fund
    View/Download »

Financial Statements

  • Audited Financial Statements

    December 2015 - Trez Capital Prime Trust Audited Financial Statements
    View/Download »

Offering Documents

  • Offering Memorandum

    Trez Capital Prime Trust Offering Memorandum
    View/Download »