Optimus Increases Portfolio with The Element

TM Real Estate Group in partnership with the Optimus Fund has acquired a 10% limited partnership interest in The Element, a 294-unit apartment complex in Metrowest district of Orlando.

The Element Brings Optimus Portfolio to 1107 Condos

On May 23, 2013, the Fund’s wholly owned subsidiary, Optimus Element LLLP, completed the acquisition of 294 condos in The Element in Orlando, Florida for $27 million. The sale price equates to $91,837 per unit. The Fund purchased a 90% interest in The Element, in partnership with a related entity of TM Real Estate Group, which entity acquired a 10% limited partnership interest.

TM Real Estate Group is the property manager of all of the Fund’s real estate holdings. This gives the Fund beneficial ownership of 265 of the 294 units purchased in the Element. The Element is located at 2207 Lake Debra Drive and is centrally located in the Metrowest district of Orlando, only 10 minutes from Universal Studios.

The units are wood-framed, stucco exterior construction, and average about 1006 sq. ft in size, many have garages. The Element backs on to the Robert Trent Jones golf course. The buildings were originally constructed in 1996, converted into a condo complex in 2006, and extensively renovated in 2010, with 37 units upgraded with premium features.

Optimus Caps Fund at $64 million with Investment from Montreal Pension Funds

Optimus US Real Estate Fund is pleased to announce that it has completed a deal with two Montreal area pension funds called the “Montreal PF’s”, who have each agreed to invest into the Fund, bringing the total Fund capitalization to just over $64 million. The details of the investment were agreed upon by a term sheet executed on April 5, 2013, and ratified by a special meeting of Fund common unitholders on May 2, 2013. Proceeds have been used to pay off an existing corporate mortgage of $8.4 million USD, an $8 million unsecured equity loan by some of the Fund’s principals, and a portion of the balance was used to complete the acquisition of 294 condos in The Element in Orlando, Florida. The Montreal PF deal was brokered by the Alternative Capital Group Inc. in Montreal, Quebec.

Management Commentary:

Managing Director and CEO Arthur Wong commented, “The Montreal PF investment represents a major step in the evolution of the Optimus Fund from a retail-based fund to one with significant institutional involvement. While we have always been confident about the transparency, accountability, and governance of the Fund, the investment by two sizable Montreal PF’s clearly validates the Fund’s investment thesis and its execution to date.” Grant Sardachuk, Managing Director of US Operations added, “The Element property acquisition is a trophy asset which increases our Florida portfolio to the largest of the three major geographical areas that Optimus is located in (448 units in total).

The Optimus US Real Estate Fund is a prospectus-exempt, open-ended private mutual fund trust that was designed to take advantage of the unprecedented downturn in US real estate prices. Designed with investors in mind, the Fund optimizes both Canadian and US tax treatments and is RRSP eligible. The highly skilled and dedicated management team has more than $3 billion in real estate acquisitions and financing experience.

Forward-Looking Statements:

Certain information in this release is forward-looking and related to the anticipated financial performance, events and strategies of the Optimus U.S. Real Estate Fund and its operating subsidiaries (collectively, “Optimus” or the “Fund” in this note). All statements other than statements of historical fact are forward-looking statements.

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