Home » NationWide II

NationWide II Self Storage Trust

This offering is currently closed. Check back soon.

NationWide II Self Storage Trust (the “Trust”) is a unique real estate investment with objectives structured to provide monthly income and long-term investment growth to investors.

INVESTMENT OBJECTIVES

The investment objective of the Trust is to provide holders of participating preferred trust units with:

  • an investment return derived from:
    1. an annualized preferred base target return based on the current Trust Unit issue price(1);
    2. up to 70% participation in the excess cash distributions after the preferred base target return is satisfied – paid monthly in arrears; and
    3. capital appreciation on disposition.
  • tax advantaged (including return of capital) monthly income distributions;
  • a source of cash flow in various economic environments;
  • secure hard asset investment backed by urban industrial real estate;
  • wealth preservation and capital appreciation; and
  • no exposure to stock market volatility.
Investment Terms
Issue Size: $22,500,000 (maximum)
Securities Offered: CDO NW021 – Participating Preferred Class A trust units
CDO NW022 – Participating Preferred Class F trust units
Price Per Security: $90.00 per Unit for first 83,333 Units ($7,500,000);
$100.00 per Unit for next 50,000 Units ($5,000,000);
$105.00 per Unit for next 47,619 Units ($5,000,000);
$110.00 per Unit for last 45,454 Units ($5,000,000).
Minimum Subscription: $10,000. Additional subscriptions may be made in multiples of $1,000 in Units.
Investment Strategies: The Trust will allocate 100% of available capital directly towards:

  1. retrofitting existing warehouse(s) and/or industrial building(s) into high quality self storage properties and/or
  2. developing new self storage properties in strategic locations.

As an alternative strategy, NationWide Self Storage may allocate capital to acquire existing, high quality, positive cash flow storage properties.

Distributions: Investors are expected to receive monthly cash distributions (targeting a 8.25% annualized preferred base return(2)(3)(4) based on a $90 Participating Preferred Trust Unit issue price and upside participation thereafter in all income and profits) approximately 12-24 months from the date of the final Closing of the Offering.
Redemption: Redemption available through quarterly redemption provisions (subject to certain restrictions including limited on cash redemptions paid).
Initial Closing: Once minimum offering is achieved and every month-end thereafter.

 

(1) targeting a 8.25% annualized preferred base return (based on a $90 Participating Preferred Trust Unit issue price).
(2) or a targeted 7.425% annualized preferred base return (based on a $100 Participating Preferred Trust Unit issue price).
(3) or a targeted 7.071% annualized preferred base return (based on a $105 Participating Preferred Trust Unit issue price).
(4) or a targeted 6.75% annualized preferred base return (based on a $110 Participating Preferred Trust Unit issue price).

Cash distributions to investors are expected to commence in 12–24 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

Middle-aged husband and wife discussing investment opportunities

The Ideal Investor

An investment in NationWide Self Storage Trust
represents an excellent opportunity
for investors who are:

  1. seeking income;
  2. overweight in cash positions and waiting for the right opportunity to invest;
  3. seeking a solid investment in a tangible hard asset;
  4. looking to generate long-term capital appreciation; and
  5. 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 info@nationwideselfstorage.ca

Investment Strategy

The Trust has identified the following strategies for entering the self-storage business:

Retrofit Existing Buildings

YEAR

1

Acquire building and retrofit storage properties

YEAR

2

Market to fill units followed by cash flow

YEAR

3+

Refinance with long-term debt at a maximum loan to value of 65%

YEAR

5+

Position for maximum targeted sale price and investor liquidity

Develop New Storage Properties

YEAR

1

Acquire land and commence construction

YEAR

2

Open storage properties and market to fill units followed by cash flow

YEAR

3+

Refinance with long-term debt at a maximum loan to value of 65%

YEAR

5+

Position for maximum targeted sale price and investor liquidity

Acquire Existing Storage Facilities

NationWide Self Storage may allocate capital to acquire existing, high quality, positive cash flow storage properties

YEAR

1

Immediate cash flow

YEAR

2

Reposition to maximize operating income

YEAR

3+

Refinance with long-term debt at a maximum loan to value of 65%

YEAR

5+

Position for maximum targeted sale price and investor liquidity

Estimated Timeline

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.

DISCLAIMER

This is not a formal offering document. Prospective purchasers of this investment opportunity will be provided with a formal offering memorandum dated May 11, 2017 (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.