phoenix pp rev7

Equity Investment OfferingEquity Investment Offering

January 2009January 2009

DisclaimerDisclaimer

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Certain statements contained in this presentation may constitute “forward-looking statements”. All statements, other than statements of historical fact, in this presentation that address activities, events or developments that Global Estate Investment Limited Partnership (“GEILP” or the “LP”) or a third party expects or anticipates will or may occur in the future, including the LP’s future growth, results of operations, performance and business prospects and opportunities, and the assumptions underlying any of the foregoing, are forward looking statements. These forward-looking statements reflect the LP’s current beliefs and are based on information currently available to the LP and on assumptions the LP believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward looking statements as they are subject to a number of significant risks and uncertainties. Certain risks and uncertainties are beyond the LP’s control. Consequently, all of the forward-looking statements are qualified by these cautionary statements, and there can be no assurances that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, the LP. These forward-looking statements are made as of the current date and the LP assumes no obligation to update or revise them to reflect subsequent information, events or circumstances unless otherwise required by applicable securities legislation.

This presentation may also contain financial measures that are used by the LP from time to time but that do not have any standardized meaning prescribed by Canadian or US generally accepted accounting principles (“GAAP”). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings or to cash flow from operating, investing, and financing activities determined in accordance with Canadian GAAP or US GAAP as indicators of the LP’s performance. These measures are provided to assist investors in determining the LP’s ability to generate earnings and cash flow from operations and to provide additional information on how these cash resources are used. These financial measures are identified and defined as follows: EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

Table of ContentsTable of Contents

• Executive SummaryExecutive Summary 44• Key ManagementKey Management ____________________________________________________________ ____________________________________________________________ 88• Phoenix Metro Area MapPhoenix Metro Area Map 99• Buying Criteria Buying Criteria 1010• The City of Phoenix__The City of Phoenix____________________________________________________________ __________________________________________________________ _11_11• Market AssessmentMarket Assessment 1212• Projected Housing Price CycleProjected Housing Price Cycle

1313• Historical Data___________________Historical Data___________________ 14 14 • RRSP InformationRRSP Information 1919• Risk AssessmentRisk Assessment 2020• AppendixAppendix

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Executive Summary: Part 1 of 4Executive Summary: Part 1 of 4

IntroductionIntroduction

Global Estate Investment LP (GEILP) proposes the purchase of up Global Estate Investment LP (GEILP) proposes the purchase of up to $25,000,000 of REO and short sale properties in the Phoenix to $25,000,000 of REO and short sale properties in the Phoenix Metro Area of Arizona.Metro Area of Arizona.

GEILP will raise $5,500,000 US as the cash component for the real GEILP will raise $5,500,000 US as the cash component for the real estate purchases.estate purchases.

Our team includes strategic personal within financial institutions, Our team includes strategic personal within financial institutions, mortgage companies, realtor agencies, property management mortgage companies, realtor agencies, property management companies, and renovating organizations.companies, and renovating organizations.

GEILP is proposing on offering lease back options to current home GEILP is proposing on offering lease back options to current home owners, or using our experienced property management team to owners, or using our experienced property management team to rent out the properties.rent out the properties.

A positive cash flow will be maintained for a period of 3 to 5 years - A positive cash flow will be maintained for a period of 3 to 5 years - when housing prices are speculated to return to peak levels. At when housing prices are speculated to return to peak levels. At the end of this period the properties will be listed and sold.the end of this period the properties will be listed and sold.

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Merits of purchasing properties in PhoenixMerits of purchasing properties in Phoenix

Real estate purchases in bulk:Real estate purchases in bulk:• Buying several homes as a group will help an individual diversify and Buying several homes as a group will help an individual diversify and

reduce the risks associated with owning only one house.reduce the risks associated with owning only one house.• Economies of scale will be achieve with discounts on property management, Economies of scale will be achieve with discounts on property management,

realtor fees, landscape maintenance, etc.realtor fees, landscape maintenance, etc.

Phoenix market:Phoenix market:• Sustainable economySustainable economy

▪ The Phoenix metro area continues to grow in populationThe Phoenix metro area continues to grow in population▪ Job growth continues to be strong in ArizonaJob growth continues to be strong in Arizona▪ Desirable retirement location for baby boomers in Canada and USDesirable retirement location for baby boomers in Canada and US

Purchasing properties in mid 2009:Purchasing properties in mid 2009:• There is a large volume of foreclosure properties in GEILP’s target There is a large volume of foreclosure properties in GEILP’s target

communities.communities.• Discounts of up to 30% off current market values.Discounts of up to 30% off current market values.• History of the Arizona market shows a peak in housing prices every 7-8 History of the Arizona market shows a peak in housing prices every 7-8

years, which would indicate the next peak to be in 2015-2016.years, which would indicate the next peak to be in 2015-2016.

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Transaction DetailsTransaction Details

GEILPGEILP• $25,000,000 purchase$25,000,000 purchase• $20,000,000 debt$20,000,000 debt• $5,000,000 cash$5,000,000 cash

Projected Revenue and ReturnsProjected Revenue and Returns

Based on sale of properties after Year 4, the Based on sale of properties after Year 4, the annualannual return for return for unit holders will be unit holders will be 40%.40%.

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* Details in Appendix A

Year 1 Year 2 Year 3 Year 4End of Year 4

House Sale GainTotal

Net Income -$239,850 $639,600 $762,720 $891,996 $15,255,000 $17,309,466

A $50,000 investment will have a proposed return of $130,000 after 4 years.



• assumes $20,000,000 in assumes $20,000,000 in mortgage debtmortgage debt

• operates all aspects of the operates all aspects of the limited partnershiplimited partnership

• provides legal and tax provides legal and tax requirements for the limited requirements for the limited partnerspartners

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• contributes $5,500,000 in contributes $5,500,000 in cashcash

• receives 65% of all income receives 65% of all income after principal paybackafter principal payback

GeneraGeneral l

PartnerPartner

LimiteLimited d

PartnerPartnerss

GEILP has retained the services of McLeod & Co LLP in Calgary, Alberta; and GEILP has retained the services of McLeod & Co LLP in Calgary, Alberta; and YCS&T Services LLC/Young Conaway Stargatt & Taylor, LLP in Wilminton, YCS&T Services LLC/Young Conaway Stargatt & Taylor, LLP in Wilminton, Delaware for legal services and advice.Delaware for legal services and advice.

Additionally, GEILP has retained the services of Deloitte in Calgary, Alberta for Additionally, GEILP has retained the services of Deloitte in Calgary, Alberta for tax consulting, auditing and tax return services.tax consulting, auditing and tax return services.

• Scott Seguin, CEOScott Seguin, CEO

Mr. Seguin is currently the President and CEO of Core Materials Inc. Since 1997, Mr. Seguin is currently the President and CEO of Core Materials Inc. Since 1997, Mr.Seguin has owned and operated several successful businesses; including Mr.Seguin has owned and operated several successful businesses; including sporting goods retail, beverage distribution, and banking services. Mr. Seguin has sporting goods retail, beverage distribution, and banking services. Mr. Seguin has a Bachelors degree in Mechanical Engineering from the University of Alberta and a Bachelors degree in Mechanical Engineering from the University of Alberta and a Masters Degree in Business from the University of Calgary.a Masters Degree in Business from the University of Calgary.

• Chris Skidmore, COOChris Skidmore, COO

Mr. Mr. SkidmoreSkidmore has had a professional career in the field of real estate acquisition, has had a professional career in the field of real estate acquisition, development and renovation, which has led to numerous local and US raw land development and renovation, which has led to numerous local and US raw land development options and inner-city projectsdevelopment options and inner-city projects. Chris lived in Phoenix from 1999 to . Chris lived in Phoenix from 1999 to 2005 and has developed an extensive network in the banking and real estate 2005 and has developed an extensive network in the banking and real estate industries. Chris is currently focusing on the development of GEILP and is industries. Chris is currently focusing on the development of GEILP and is working closely with our current partners in Phoenix.working closely with our current partners in Phoenix.

• Victor Millington, VP financeVictor Millington, VP finance

Mr. Millington has been a senior loan officer since 2001 for both Mortgage Banker Mr. Millington has been a senior loan officer since 2001 for both Mortgage Banker and Mortgage Broker; and during this time has worked with over 185 different and Mortgage Broker; and during this time has worked with over 185 different lenders. Since 2001, Victor has been a real estate agent in Maricopa County, lenders. Since 2001, Victor has been a real estate agent in Maricopa County, Arizona with over 100 transactions to his credit. He has a Bachelor of Science Arizona with over 100 transactions to his credit. He has a Bachelor of Science degree from Michigan State University. Victor is also FHA and Ameridream degree from Michigan State University. Victor is also FHA and Ameridream Certified.Certified.

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Key ManagementKey Management

Phoenix – Metro AreaPhoenix – Metro Area

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Buying CriteriaBuying Criteria

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• Buying Criteria:Buying Criteria: Locations:Locations:

PhoenixPhoenixScottsdaleScottsdaleMesaMesaGlendaleGlendalePeoriaPeoriaChandlerChandlerGilbertGilbertAnthemAnthemTempeTempe

3 bedroom minimum3 bedroom minimum 1 ¾ bathroom minimum1 ¾ bathroom minimum 1300 sq. ft. minimum1300 sq. ft. minimum $1,000 maximum in initial renovations (paint, landscape, etc.)$1,000 maximum in initial renovations (paint, landscape, etc.) $160,000 to $200,000 $160,000 to $200,000 Built after 1987, with aim to purchase homes built in 2000 or newerBuilt after 1987, with aim to purchase homes built in 2000 or newer Homes without HOA/community feesHomes without HOA/community fees

NOTE: The criteria above is GEILPNOTE: The criteria above is GEILP’’s starting criteria and may change from time-to-time in order to accommodate for changes s starting criteria and may change from time-to-time in order to accommodate for changes in the real estate market.in the real estate market.

The City of PhoenixThe City of Phoenix

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• Phoenix is a desirable location; it’s beautiful and, most importantly, its Phoenix is a desirable location; it’s beautiful and, most importantly, its cost of living is very reasonable. This explains why Phoenix is an cost of living is very reasonable. This explains why Phoenix is an affordable choice for young families, and also the reason why its location affordable choice for young families, and also the reason why its location is an asset to companies looking to attract new workers. is an asset to companies looking to attract new workers.

• Warm weather is certainly a factor in the Valley's popularity. The sun Warm weather is certainly a factor in the Valley's popularity. The sun shines more than 80 percent of the time on an annual average. The area shines more than 80 percent of the time on an annual average. The area receives about 7 inches of precipitation yearly, and the average annual receives about 7 inches of precipitation yearly, and the average annual daytime temperature is about 82daytime temperature is about 82°F°F / 28 / 28°C°C. Phoenix's climate is . Phoenix's climate is excellent, especially for those whom are used to having to deal with excellent, especially for those whom are used to having to deal with snow, the cold, and grey skiessnow, the cold, and grey skies..

• An incredible variety of sports action can be found in the Valley. An incredible variety of sports action can be found in the Valley. Professional sports teams include the NBA’s Phoenix Suns, the NFL’s Professional sports teams include the NBA’s Phoenix Suns, the NFL’s Arizona Cardinals, the NHL’s Phoenix Coyotes, the MLB’s Arizona Arizona Cardinals, the NHL’s Phoenix Coyotes, the MLB’s Arizona Diamondbacks, and the WNBA’s Phoenix Mercury. Diamondbacks, and the WNBA’s Phoenix Mercury.

• Arts and cultural activities are abound in Phoenix, with more than 20 Arts and cultural activities are abound in Phoenix, with more than 20 museums in the metro area as well as numerous performing arts groups. museums in the metro area as well as numerous performing arts groups. A sampling of the museums include the newly renovated and expanded A sampling of the museums include the newly renovated and expanded Phoenix Art Museum, which holds more than 13,000 works of artPhoenix Art Museum, which holds more than 13,000 works of art..

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• AssumptionsAssumptions

Total Purchases: $25,000,000Total Purchases: $25,000,000 Average unit list price: $115,000Average unit list price: $115,000 Discounted purchase price : $90,000Discounted purchase price : $90,000 Number of units: 180Number of units: 180 Average days before rented: 60Average days before rented: 60 Average rental rate per unit: $1,200Average rental rate per unit: $1,200 Initial repair fee per unit: $2,500Initial repair fee per unit: $2,500 Monthly maintenance reserve per unit: $165Monthly maintenance reserve per unit: $165 Property management fee: 10% at the time of lease signing.Property management fee: 10% at the time of lease signing. Average bank financing per house: $63,000 (70% LTV)Average bank financing per house: $63,000 (70% LTV) Average cash required per house: $27,000Average cash required per house: $27,000

Market AssessmentMarket Assessment

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• Projected housing price cycle in Phoenix Metro area, based on a Projected housing price cycle in Phoenix Metro area, based on a average residential single family home with a average residential single family home with a current market current market valuevalue of $212,500. of $212,500.

Projected Housing Price CycleProjected Housing Price Cycle

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Historical data- Part 1 of 5Historical data- Part 1 of 5West Valley Maricopa County House SalesWest Valley Maricopa County House Sales

• House sales continue to stay strong in West Valley Maricopa House sales continue to stay strong in West Valley Maricopa County. The absorption of excess properties is continuing to County. The absorption of excess properties is continuing to decrease inventory.decrease inventory.

Note: Information supplied by the Multiple Listing Service.Note: Information supplied by the Multiple Listing Service.

West Valley Maricopa County: Home Sales for J uly 2007 - J uly 2008

6,745

2,266

362237

1,945

363

1,334

419

7,991

2,636

244 212393

1,070

579

1,713

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

> $340,000 < $340,000 > $340,000 < $340,000 > $340,000 < $340,000 > $340,000 < $340,000

Phoenix Anthem Glendale Peoria

Units Sold

Units Listed

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Historical data- Part 2 of 5Historical data- Part 2 of 5East Valley Maricopa County House SalesEast Valley Maricopa County House Sales

• House sales continue to stay strong in East Valley Maricopa House sales continue to stay strong in East Valley Maricopa County. The absorption of excess properties is continuing to County. The absorption of excess properties is continuing to decrease inventory.decrease inventory.


East Valley Maricopa County: Home Sales for J uly 2007 - J uly 2008

3,251

668

1,917

1,054

2,267

930

484

2,736

651

248

2,439

8191,016

848

1,222

858

330

3,534

328203

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

>$340,000

<$340,000

>$340,000

<$340,000

>$340,000

<$340,000

>$340,000

<$340,000

>$340,000

<$340,000

Mesa Chandler Gilbert Scottsdale Tempe

Units Sold

Units Listed

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Historical data- Part 3 of 5Historical data- Part 3 of 5West Valley Maricopa County LeasingWest Valley Maricopa County Leasing

• The number of properties leased out in West Valley Maricopa The number of properties leased out in West Valley Maricopa County continues to increase as volume of rental property has County continues to increase as volume of rental property has constantly decreased over the past year.constantly decreased over the past year.


West Valley Maricopa County: Rentals for J uly 2007 - J uly 2008

1,309

1,488

210243

434

355410

350326

621

4493 73

11173

126

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

< $1,200 > $1,200 < $1,200 > $1,200 < $1,200 > $1,200 < $1,200 > $1,200

Phoenix Anthem Glendale Peoria

Units

Rentals leased -signed Dec 2007

Rentals listed

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Historical data- Part 4 of 5Historical data- Part 4 of 5East Valley Maricopa County LeasingEast Valley Maricopa County Leasing

• The number of properties leased out in East Valley Maricopa The number of properties leased out in East Valley Maricopa County continues to increase as volume of rental property has County continues to increase as volume of rental property has constantly decreased over the past year.constantly decreased over the past year.


East Valley Maricopa County: Rentals for J uly 2007 - J uly 2008

669

335

599

531587

557

43

1,031

119

219

151 14097

212

82

175

10

854

2075

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

< $1,200 > $1,200 < $1,200 > $1,200 < $1,200 > $1,200 < $1,200 > $1,200 < $1,200 > $1,200

Mesa Chandler Gilbert Scottsdale Tempe

Units

Rentals leased -signed Dec 2007

Rentals listed

* Stats from the U.S. Census Bureau and www.phoenix.gov* Stats from the U.S. Census Bureau and www.phoenix.gov 18

Historical data- Part 5 of 5Historical data- Part 5 of 5Population growthPopulation growth

• Phoenix has seen substantial growth over the last decade and is Phoenix has seen substantial growth over the last decade and is also projected to see continued growth over the coming decade.also projected to see continued growth over the coming decade.

• The 2005 population of Phoenix was estimated to be 1,512,597.*The 2005 population of Phoenix was estimated to be 1,512,597.*

Population Growth Phoenix and Maricopa County*

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1970 1980 1990 2000 2010 2020 2025

Phoenix

Maricopa County

Risk AssessmentRisk Assessment

• Phoenix housing marketPhoenix housing market When will the market begin the long-term, upward trend?When will the market begin the long-term, upward trend?

• Foreclosure purchase priceForeclosure purchase price Are the purchase prices actually at the specified discount?Are the purchase prices actually at the specified discount?

• Ability to rent and maintain a 95%+ occupancy rateAbility to rent and maintain a 95%+ occupancy rate Property management’s ability to rent-out acquired Property management’s ability to rent-out acquired

properties.properties.

• CompetitionCompetition Large firms purchasing similar properties, creating Large firms purchasing similar properties, creating

competition for the rental and sales market.competition for the rental and sales market.

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• Scott Seguin▪ (403) 510-2461▪ [email protected]

• Chris Skidmore▪ (480) 789-1466▪ [email protected]▪ 11827 North 133 Rd Way▪ Scottsdale, Arizona▪ 85259

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Contact InformationContact Information

mailto:[email protected]

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1.1. Income Statement ProjectionsIncome Statement Projections

2.2. Cash Flow ProjectionsCash Flow Projections

Appendix ListingAppendix Listing

phoenix pp rev7

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