NationWide IV Self Storage & Auto Wash Trust
INCOME TRUST DETAILS
NationWide IV Self Storage & Auto Wash Trust (the Trust) is structured to provide holders of participating preferred trust units (Trust Units) with a robust source of tax-advantaged income paid monthly and the potential for annual special cash distributions, while preserving and growing the original capital investment.
The investment objective of the Trust is to provide holders of participating preferred trust units with:
- an investment return derived from:
- a preferred base return based on the current Trust Unit issue price;1
- up to 70% participation in returns exceeding the preferred base target return; and
- capital appreciation on disposition of the Development Property;
- tax advantaged target monthly income distributions, as a portion of the distributions will be taxed as a return of capital;
- a source of cash flow in various economic environments;
- an investment backed by urban industrial real estate.
|Issue Size:||$11,000,000 (maximum)|
|Securities Offered:||CDO NW041 – Participating Preferred Class A trust units
CDO NW042 – Participating Preferred Class F trust units
|Price Per Security:||$100 per Trust Unit for next 80,000 Units ($8,000,000);
$105 per Trust Unit for next 47,619 Units ($5,000,000);
$110 per Trust Unit for next 22,720 Units ($2,500,000);
$115 per Trust Unit for last 21,739 Units ($2,500,000).
|Minimum Subscription:||$10,000. Additional subscriptions may be made in multiples of $1,000 in Units.|
|Business of the Trust:||The Trust will invest all the Available Funds in securities of the Partnership (as defined in the Offering Memorandum), which will in turn use the proceeds to acquire a 0.66 acre (28,900 sq. ft.) property located at 2337 King George Blvd in Surrey, British Columbia (the “Development Property”). The Partnership intends to develop and operate a 3-storey (plus 2 basement floors) combination self storage/car wash facility on the Development Property.|
|Distributions:||Investors are expected to receive monthly cash distributions (targeting annualized preferred base return of 7.425%, 7.071%, 6.75% or 6.456% based on a $90, $100, $105, $110 and $115 Trust Unit issue price, respectively; and upside participation thereafter in all income and profits) approximately 15-30 months from the date of the final Closing of the Offering.|
|Redemption:||Quarterly redemption provisions (subject to certain restrictions – see Offering Memorandum).|
|Eligibility:||The Units are qualified investments for Registered Plans, which include RSPs, RIFs, DPSPs, RESPs, RDSPs and TFSAs.|
|Liquidity:||Liquidity is expected to occur within approximately 5 to 9 years. Terms and timing of a liquidity event (if any) will depend on opportunities available at the time.|
1 targeting an annualized preferred base target return of 7.425%, 7.071%, 6.75% or 6.456% based on a $90, $100, $105, $110 and $115 Trust Unit issue price, respectively. See current Offering Memorandum for details.
Monthly cash distributions to investors generally start 18-24 months from the closing of an offering and is dependent on the opening of the facility.
NationWide IV Self Storage & Auto Wash Trust – Surrey Status Update
The NationWide IV Self Storage & Auto Wash investment offering is currently open.
T3 Statement of Trust Income Allocation (T3 Tax Slips) are sent out on or before March 31st in the years that Trust Income (Cash Distributions) is paid out to Investors. T3 Tax Slips are mailed out from NationWide’s back office to the investors.
For status of Cash Distributions, please visit the Cash Distributions tab for the offering to which you invested in.
TAX REPORTING FOR THE 2018 TAX YEAR
The Ideal Investor
An investment in a NationWide Self Storage trust offering represents an excellent opportunity for investors who are:
- seeking income;
- overweight in cash positions and waiting for the right opportunity to invest;
- seeking a solid investment in a tangible hard asset;
- looking to generate long-term capital appreciation; and
- wanting less exposure to stock market volatility.
The Trust is offered via Offering Memorandum to eligible investors only. Please contact your investment dealer for further information or email@example.com
Purchased Property Overview
The Trust has purchased the property located in 2337 King George Blvd and will develop this property into a combination self storage/car wash facility. Offering easy access off King George Blvd and 24 Ave intersection, this South Surrey White Rock property is near upcoming neighborhood developments occurring in the region and is only minutes away from one of the largest retail corridors in the Lower Mainland.
Using Strategy Two, the Trust has elected to develop a combination storage/car wash property for this trust offering. Below is the estimated timeline for the development:
- Strategy 1
- Strategy 2
- Alternative Strategy
Develop New Storage Properties
Acquire land and commence construction
Open storage properties and market to fill units followed by cash flow
Refinance with long-term debt at a maximum loan to value of 65%
Position for maximum targeted sale price and investor liquidity
Frequently Asked Questions
When will monthly cash distributions commence?
Cash distributions to investors are estimated to commence approximately 12-30 months of the final investment closing, however cash distributions may commence within 3 months after acquisitions of an already existing storage facility or within 18 months after the development or retrofit of an existing warehouse into a self storage facility.
How and when do investors receive their tax slips?
On or before March 31 of the year following the announcement of cash distributions in the Trust, investors will be mailed a T3 – Statement of Trust Income Allocations and Designations from NationWide’s back office. Investors will receive a T3 for each year they own Trust units.
When will the liquidity event take place and what will investors receive at that time?
Liquidity event is expected to occur within approximately 5 to 9 years. It is anticipated that investors will receive cash or shares of a publicly traded company, but the terms and timing of a liquidity event (if any) will depend on opportunities available at the time.
This is not a formal offering document. Prospective purchasers of this investment opportunity will be provided with a formal offering memorandum dated June 3, 2019 (the “Offering Memorandum”) and will need to be qualified for investment prior to making any investment. No person has been authorized to give any information or to make any representation not contained in the Offering Memorandum. No securities regulatory authority or regulator has assessed the merits of the proposed offering or reviewed the Offering Memorandum. and will need to be qualified for investment prior to making any investment. No person has been authorized to give any information or to make any representation not contained in the Offering Memorandum. No securities regulatory authority or regulator has assessed the merits of the proposed offering or reviewed the Offering Memorandum.
This investment opportunity is speculative and involves a high degree of risk. There is a risk that an y investment made will be lost entirely or in part. Only prospective investors who do not require immediate liquidity of their investment and who can afford the loss of their entire investment should consider this investment.