Invest in the residential rental assets Canadian families want most.
The Avanew REIT is the opportunity to participate in the income and appreciation of ground-oriented institutional-class rental options that Canadians have been missing.
Canada is Moving to Rentals
More Affordable vs Home Ownership
No Downpayments
Avanew in 90sec
Low Rise Rental is in the Highest Demand and the Shortest Supply
2010-2019 saw fewer “ground-oriented” housing completions than any decade since the 1960s.
Preference for ground-oriented dwellings spans all age groups including Millennials and Gen Y – 80% of Millennials express a preference for ground-oriented vs apartment.
There is a growing mismatch between the types of housing Canadians want and what is being built: the majority of new purpose built rental supply are apartments.
Key Benefits of the Avanew REIT
Participation in recurring distributions from rising rents and capital growth generated by a diversified portfolio of stabilized rental assets.
Avanew REIT expects to utilize a low leverage strategy to derisk the portfolio’s financial volatility. Avanew REIT will seek to grow its portfolio through acquisition of assets from smaller market participants. Many smaller, individual low rise rental landlords are under pressure from higher borrowing costs and higher capital gains taxes – Avanew REIT, as a well capitalized, institutional quality asset manager has the ability to provide enhanced management of these assets. Additionally, Avanew REIT is a long term owner of low rise rental real estate, providing its tenants with stability relative to “mom-and-pop” landlords.
Avanew REIT units may also be offered as consideration to purchase assets from smaller “mom and pop” operators, providing vendors with a tax-deferred rollover while retaining exposure to the asset class in a larger and more diversified portfolio. This allows the Avanew REIT to more expediently scale up its operations and provides vendors with a tax advantaged solution, particularly in light of increases to the capital gains tax inclusion rates, which affects all sellers of investment properties in Canada.
In Canada, Avanew is the first to bring leading prop-tech and US REIT best practices to the market, establishing it as the leading, institutional quality low rise rental asset manager.
Similarly structured vehicles in the US market typically provide an IRR of around 10%.
Not Every House Is an Avanew Home
Avanew invests where demand for low rise rental homes is most robust and where local economies support job creation and stable incomes for prospective tenants.
For efficiencies of scale in property management, Avanew also clusters its investments in areas where it can achieve scale of 50 homes or more.
Avanew invests in 3 types
of low rise assets:
Occupied assets, such as single family homes or low rise multi unit properties, currently offered as rentals by smaller landlords in high-quality neighbourhoods.
Underutilized properties where Avanew can upgrade an existing asset and potentially add gentle densification through the addition of an Accessory Dwelling Units (ADUs), creating new housing supply.
Finally, Avanew is also exploring options to create purpose built rental assets, potentially as new communities within established neighbourhoods, to further add to the housing options available for Canadians.