NationWide II Self Storage
& Auto Wash Trust
NationWide II Self Storage & Auto Wash Trust (the “Trust”) is a unique real estate investment with objectives structured to provide monthly income and long-term investment growth to investors.
The investment objective of the Trust is to provide holders of participating preferred trust units with:
- an investment return derived from:
- an annualized preferred base target return based on the current Trust Unit issue price1;
- 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 (including return of capital);
- a source of cash flow in various economic environments;
- an investment backed by urban industrial real estate.
|Issue Size:||$16,500,000 (maximum)|
|Securities Offered:||CDO NW021 – Participating Preferred Class A trust units
CDO NW022 – Participating Preferred Class F trust units
|Price Per Security:||$100 per Trust Unit for first 30,000 Units ($3,000,000);
$105 per Trust Unit for next 57,143 Units ($6,000,000);
$110 per Trust Unit for next 45,455 Units ($5,000,000);
$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 2055 Boundary Road in Vancouver, British Columbia (the “Development Property”). The Partnership intends to develop and operate a 4-6 floor combination self storage/car wash facility on the Development Property.|
|Distributions:||Investors are expected to receive monthly cash distributions (targeting annualized preferred base return target of 7.425%, 7.071%, 6.75% or 6.456% based on a $100, $105, $110 and $115 Trust Unit issue price, respectively; and upside participation thereafter in all income and profits) approximately 12-24 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 7 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 $100, $105, $110 and $115 Trust Unit issue price, respectively. See current Offering Memorandum for details.
Cash distributions to investors are expected to commence in 15–30 months. Individual storage facilities are expected to begin generating cash flow within 3 months after the acquisition of a storage facility or within 18 months after the development or retrofit of a storage facility.
On or before March 31 of the year following an investment 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 and receive cash distributions.
TAX REPORTING FOR THE 2017 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 2055 Boundary Road and will develop this property into a combination self storage/car wash facility. Offering excellent exposure and access off Lougheed Highway this property is minutes away from major urban developments occurring in Metro Vancouver, including the upcoming Solo District, Gilmore Place and Amazing Brentwood.
View Property Overview page.
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 within 12-24 months of 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 a warehouse into a self storage facility.
How and when do investors receive their tax slips?
On or before March 31 of the year following an investment 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 7 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 October 1, 2018 (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.