Investors

Lancaro creates value by uncovering overlooked opportunities

We exist to make a lasting positive impact for our tenants, investors, and the communities in which we operate.

We apply our experience, entrepreneurship, deep market knowledge, rigorous data-driven approach, financial discipline, and extensive relationships to uncover overlooked opportunities.

We choose strong markets with diversified, resilient economies and attractive demographics.

We design appealing and efficient developments on well-located properties.

We are retailers at heart and we focus relentlessly on our tenants’ success.

Because we pick the right properties in the right markets, and because of our retailer-focused approach, we attract sought-after national tenants with strong financial covenants.

We are conservative in our underwriting and uncompromising in project execution.

We create value through intelligence and hard work.

Investing alongside us

As we deploy capital and establish a track record, we will consider accepting external investors. The following are the principles upon which we would base our relationship with investors.

SPONSOR ALIGNMENT

We feel that having skin in the game is critical. As such, the Lancaro team’s participation will always be no less than 10% of the total equity of the fund.

INVESTMENT & CAPITAL ALLOCATION GUIDELINES

While the following guidelines are not intended to be strictly applied, they inform our investment decisions:

Minimum trade area population of 10,000 people (unless supported by a strong non-permanent resident population, such as resort towns).
Investments need to present the opportunity for short to medium-term value creation, or long-term growing, predictable cash flows.
Where we intend to hold properties for the long term, we seek to align the term of property debt to lease maturities.
Leverage target between 50 and 65% of asset value.
Retain sufficient cash from operations to fund capital maintenance of existing properties.
Depending on deal flow and our development pipeline, capital may also be deployed through mortgage loans to third parties.

RIGOROUS MANAGEMENT & TRANSPARENT REPORTING

Before investing in any project, we set a clear 5-year strategy for the investment and define measurable goals to be achieved.

We hold ourselves accountable and report back regularly on our performance against our strategy and the goals we’ve set. We create thoughtful, realistic plans and strive to over-deliver.

We remain agile; we will evolve our strategy and underlying goals as market conditions warrant, and always keep you informed.

EQUITY PARTICIPATION

Participation is reserved for institutions and accredited investors.
Minimum $250,000 initial commitment.
Typically, 50% of the commitment is required upon subscription, with a further cash call for the balance to be expected 4 to 12 months after, but these guidelines will vary depending on specific transactions and deal flow.

ANTICIPATED RETURNS

Our goal is to provide investors with a minimum 8% total annual return, from a combination of cash distributions over time and capital gains.

While many real estate entities count on property inflation to achieve capital appreciation, we create value by applying our unique talents to acquire properties and develop or reposition them with long term leases to strong tenants, generating improved cash flows.

important CAUTIONARY statements

This document is a corporate profile and is NOT, and under no circumstances is to be construed as, an offering memorandum, a prospectus, advertisement, or public offering of securities. Neither this corporate profile nor any other material relating to a potential future offering has been reviewed or considered by any securities commission, or any other governmental or regulatory authority.

If and when securities might be offered for subscription, the transfer of such securities will be subject to certain restrictions and will be affected by restrictions on resale. There is no guarantee that a resale market may exist.

Lancaro has not commenced operations and does not own any assets. Accordingly, it has no operating history upon which prospective investors may evaluate its performance. Past performance of the affiliates of the general partner and its personnel are not indicative of future results, and there can be no assurance that targeted returns will be met. Accordingly, investors should draw no conclusion from the performance of historical investments by affiliates of Lancaro or its personnel mentioned herein.

All real property investments are subject to elements of risk. Such investments are affected by national, regional and local economic conditions, local real estate markets (including an oversupply of space in properties like those in which Lancaro invests, or a reduction in demand for properties like those in which Lancaro invests), the attractiveness of properties in which Lancaro invests, competition from other available premises, financing availability, permitting and governmental regulations (including those governing usage, zoning, the environment and taxes) and various other factors, some of which cannot be foreseen.

Certain significant expenditures must be made throughout the period of ownership of real property regardless of whether the property is producing any income.

The real estate business is competitive. Numerous other developers, managers and owners of real estate compete with Lancaro in seeking to acquire properties, lease them or sell them.

Future development of real estate properties may not yield expected returns and may strain management resources. Development of properties is subject to several risks, including construction delays, cost overruns, financing risks, failure to meet expected occupancy and rent levels, delays in and the inability to obtain zoning, occupancy and other governmental permits, and changes in zoning and land use laws. Overall project costs may significantly exceed the costs that were estimated when the project was originally undertaken, which could result in reduced returns, or even losses, from such investments.

Various conflicts of interest exist or may arise between Lancaro and other entities which are affiliates of Lancaro. These conflicts of interest may have a detrimental effect on the business of Lancaro. Lancaro may retain certain management services and other services from affiliates and/or third parties in managing its real estate interests, as disclosed from time to time.

As an owner of interests in real property, Lancaro will be subject to various federal, provincial, and municipal laws relating to environmental matters. Such laws provide that Lancaro could be liable for the costs of removal of certain hazardous substances and remediation of certain locations. The failure to remove such substances or remediate such locations, if required, could adversely affect the ability to sell such real estate or to borrow using such real estate as collateral and could potentially also result in claims against the owner.

Lancaro and its related entities must comply with various legal requirements, including tax laws, environmental laws, and other laws, rules, and regulations relating to the development of real estate. Should any of those laws, rules, or regulations change over time, the legal requirements to which the owner of the property may be subject could differ materially from current requirements.

General economic conditions will affect Lancaro’s activities. Interest rates, general levels of economic activity, the demand for real estate, and other factors may affect the value of investments made by Lancaro.