Altyn Equities – Fall 2019 Update
Greetings investors, and thank you for reading our semi-annual update of activities.
We did not buy a single building since August of 2018. We did place offers on three solid projects, 75 units (2 buildings) in Saskatoon, 96 units (3 buildings) also in Saskatoon, and a very nice 20 suiter in Mill Woods in Edmonton. The first two offers were rejected, however we offered fair market price. We did place the Mill Woods project under contract but the deal fell apart during due diligence when the building experienced a spike in vacancy and we were unable to obtain financing. During this time I likely walked through a dozen buildings, poured through more than a hundred listings (many off market), to narrow down a few prospects however this year nothing panned out, but this is the way it goes.
In general the market still remains soft in Alberta and Saskatchewan and we seem to be hovering near bottom since 2018, a falling market that is now entering its 6th year. There are signs of optimism however, as vacancy rates are coming down and we are now raising rents in all markets including Saskatoon in which we have just changed property management companies. We have spent the last several months improving all projects substantially in preparation for the next upswing. We have now sold our shares in Spruce Grove for significant profit, and provided a great ROI to our investor partners. Beaumont Place is still doing well, with a possible sale in 2022 when the mortgage is up. The Saskatoon projects are slightly behind, and mostly likely will go from 5 year deals to 8-10 year deals to hit our targets. Although the market was down from the 2014 highs in 2016/2017 when we bought, it has since deteriorated further as we near our 5 year points. The good news is we will hit target as the market is turning around, and we are well positioned to take advantage of it having invested in our buildings during the downturn.
Please click on the fall update link above (or below) for the complete update, including details on each project.
Happy 2020 and happy investing!