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
Minimum Investment: $5,000 (500 units)
Redemptions: 30 days' notice, subject to 1% retraction penalty if redeemed within 1st year
Eligibility: RRSP / RRIF / TFSA / RESP / RDSP / DPSP
FundSERV Codes: Series A - TRZ400, Series F - TRZ410
DRIP Eligible: Yes
Fund Assets (12/31/2016): $56,871,530

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 Investments $54,936,400
Cash (and Equivalents) 0
Other Assets $895,348
Total Fund Assets $56,871,530
No. of Mortgage Investments 25
Average Mortgage Size $2,197,456
Weighted Average LTV 61.9%

Geographic Region

Alberta
30.3%
British Columbia
27.7%
Ontario
13.9%
Texas
12.9%
Quebec
8.3%
Florida
5.3%
Cash and Other Assets
1.6%

Asset Class

Residential
63.2%
Retail
14%
Industrial
12.4%
Mixed Use
5.2%
Hotel
3.6%
Cash and Other Assets
1.6%

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

  2017 YTD 1 Year 3 Year 5 Year Since Inception
Trez Capital Prime Trust
Series F
2.0% 5.2% 5.4% 5.7% 7.3%
Trez Capital Prime Trust
Series A1
1.5% 4.2% 4.3% 4.7% 6.3%

1 A Series units were introduced on April 1, 2013.
Returns are reported as F Series returns less 100 bps.

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 F units and 0.75% on Series A 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 Quarterly Distribution Top-up1 Total Distribution 
2016 A2 $0.075 $0.075 $0.075  $0.075 $0.300  $0.113 $0.413
  F $0.10 $0.10 $0.10  $0.10 $0.400  $0.113 $0.513
2015 A2 $0.075 $0.075 $0.075 $0.075 $0.300 $0.130 $0.430
  F $0.10 $0.10 $0.10 $0.10 $0.40 $0.13 $0.53
2014 A2 $0.125 $0.125 $0.075 $0.075 $0.40 $0.037 $0.437
  F $0.15 $0.15 $0.10 $0.10 $0.50 $0.037 $0.537
2013 F $0.15 $0.15 $0.15 $0.08 $0.53 $0.04 $0.57
2012 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.04 $0.64
2011 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.01 $0.61
2010 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.04 $0.64
2009 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.19 $0.79
2008 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.70 $1.30
2007 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.22 $0.82
2006 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.25 $0.85

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 A Series units were introduced on April 1, 2013.

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 1.5% of the Average Annual Gross Assets relating to the F Series and A Series units.
Incentive Fee 10% of the Net Income for each unit series after deduction of the Management fee.

Minimum Investment

Province Minimum investment when relying on accredited investor exemption1 Minimum investment when relying on offering memorandum exemption2 Minimum investment amount exemption3
Alberta $5,000 $ 5,000 $150,000
British Columbia $5,000 $ 5,000 $150,000
Manitoba $5,000 N/A $150,000
New Brunswick $5,000 $5,000 $150,000
Newfoundland & Labrador $5,000 $5,000 $150,000
Nova Scotia $5,000 $5,000 $150,000
Ontario $5,000 $ 5,000 $150,000
Quebec $5,000 N/A $150,000

1 Accredited Investor Exemption: There is no regulatory minimum subscription amount for investors qualifying under the Accredited Investor Exemption. However, the minimum initial purchase amount established by the Manager is $5,000.

2 Offering Memorandum Exemption: There is no regulatory minimum subscription amount for investors qualifying under the Offering Memorandum Exemption. However, the minimum initial purchase amount established by the Manager is $5,000. (Only available for residents of British Columbia, Newfoundland & Labrador, Ontario, Alberta, Saskatchewan, Nova Scotia, and New Brunswick, subject to certain restrictions)

3 Minimum Amount Exemption (not available to individuals): The minimum initial subscription amount for investors qualifying under the Minimum Amount Exemption is $150,000 in each province listed above.

 

to invest, contact your financial advisor, or follow the procedure outlined below.

TREZ CAPITAL PRIME TRUST is sold BY offering memorandum and is available to:

  • Residents of British Columbia or Newfoundland & Labrador, who are provided with an offering memorandum and complete a risk acknowledgment form (45-106F4).  Investment relies on the Offering Memorandum exemption.
  • Residents of Ontario, Alberta, Saskatchewan, New Brunswick, or Nova Scotia, who are provided with an offering memorandum and complete a risk acknowledgement form (45-106F4) with Schedule I and Schedule II (Classification of Investors and Investment Limits).   Investment relies on the Offering Memorandum exemption.
  • Residents of Manitoba or Prince Edward Island, who are provided with an offering memorandum and complete a risk acknowledgment form (45-106F4) and an eligible investor certification.   Investment relies on the Offering Memorandum exemption.
  • Residents of Quebec who qualify as accredited investors and complete an accredited investor certification and a risk acknowledgement form (45-106F9 - for individual investors only).  Investment relies on the Accredited Investor exemption. or;
  • By investing a minimum of $150,000 (for entities only).  Investment relies on the Minimum Amount exemption.

How To Invest

Units may be purchased directly from Trez Capital, or through a self-directed registered plan administered by one of the following:

  • Olympia Trust Company
  • Blue Shore Financial
  • Computershare Trust Company
  • Canadian Western Trust
  • Scotia Private Client Group

Please follow the steps below to proceed with your investment:

1
Download a subscription package:

I am investing as a(n):

  1. Advisor / Investment Dealer
  2. Individual investor (or Jointly)
  3. Corporation, Partnership, or Trust
  4. Institution, Pension Plan, or Investment Fund
2
Complete the application.

For any assistance filling out the application, please contact Investor Services:

T: 604.689.0821
TF: 1.877.689.0821
Monday to Friday, 8:30am to 5:00pm PST

  investor-relations@trezcapital.com
3
Return completed application by Email or Post.

Email: Investor-Relations@trezcapital.com

   

Mailing Address:
Trez Capital LP
c/o Investor Services
#1550 - 1185 West Georgia St.
Vancouver, BC  V6E 4E6

A dealing representative will contact you upon receipt to discuss your application.

Fund Fact Sheets

  • Fund Fact Sheet (A Series)

    Fund Fact Sheet (A Series)
    June 2017 - Trez Capital Prime Trust Fund Fact Sheet (A Series)
    View/Download »
  • Fund Fact Sheet (F Series)

    Fund Fact Sheet (F Series)
    June 2017 - Trez Capital Prime Trust Fund Fact Sheet (F Series)
    View/Download »

Quarterly Unitholder Reports


Subscription Documents

  • Corporate Investor Application Form

    July 2017 - Fund Application form for Corporation, Partnership, or Trust
    View/Download »
  • Individual Investor Application Form

    July 2017 - Fund Application form for Individual investors (or joint investors)
    View/Download »
  • Institutional Investor Application Form

    July 2017 - Fund Application form for Institutional, Pension Plan, or Investment Fund
    View/Download »
  • Exempt Market Dealers - Subscription Form (Corporate)

    May 2017 - Exempt Market Dealers - Subscription Form (Corporate)
    View/Download »
  • Exempt Market Dealers - Subscription Form (Individual)

    May 2017 - Exempt Market Dealers - Subscription Form (Individual)
    View/Download »
  • FundSERV Brokers - Subscription Form (Corporate)

    May 2017 - FundSERV Brokers - Subscription Form (Corporate)
    View/Download »
  • FundSERV Brokers - Subscription Form (Individuals)

    May 2017 - FundSERV Brokers - Subscription Form (Individuals)
    View/Download »

Financial Statements

  • Audited Financial Statements

    December 2016 - Trez Capital Prime Trust Audited Financial Statements
    View/Download »

Offering Documents

  • Offering Memorandum

    Trez Capital Prime Trust Offering Memorandum
    View/Download »