TORONTO, Nov. 14, 2013 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital"), a Canadian investment firm that specializes in commercial mortgages, loans and private real estate investments, is pleased to announce that it has entered into a $25 million credit facility with a Canadian lender for its three TSX listed funds; ROI Canadian Mortgage Income Fund ("RIL.UN"), ROI Canadian High Income Mortgage Fund ("RIH.UN"), and ROI Canadian Real Estate Fund ("RIR.UN") (each a "Fund" and collectively the "Funds"). The current net asset value of each fund is approximately $354 million, $428 million, and $199 million respectively, and each fund is limited to borrowing an amount not to exceed 30% of its net asset value. The expected allocation of the credit facility is $9.5 million for RIL.UN, $3.5 million for RIH.UN, and $12 million for RIR.UN, currently representing 1% to 6% of the net asset value of any one fund. While ROI Capital, the Manager of the Funds, expects to have sufficient liquidity, due to the illiquid nature of commercial mortgages, loans and private real estate, it is entering into the agreement to secure a credit facility to provide the Funds with additional flexibility with respect to the Funds 2013 annual redemption obligation. Additional information regarding the annual redemption for the Funds can be found at roicapital.ca.
About ROI Capital
Established in 2002, ROI Capital is a Canadian investment firm that specializes in commercial mortgages, loans and private real estate. With a deep understanding of the fundamentals of the commercial real estate market, ROI Capital strives for capital preservation while seeking to deliver returns for investors. This is achieved by primarily focusing on income-producing properties in large urban markets. Today, ROI manages approximately $1.3 billion across 11 funds of which RIL.UN, RIH.UN and RIR.UN are listed on the Toronto Stock Exchange.
Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Return On Innovation Advisors Ltd. undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in a Fund will earn any positive return in the short or long term nor is there any guarantee that a Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.
SOURCE: ROI Capital
For further information:
Wilfred Vos Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA
President & Founding Partner