Dear Investor, As you know Albertan's and the oil patch have been going through a tough time over the last two years. Our 500 man Royal Redwater Lodgethat was zoned, approved and SUPPOSED to go on our land was canceled due to oil prices. Now we are at the end of what was a considerable downturn and ready to move forward.
As I mentioned in a previous update we hired consultants to advise us on how best to adjust our business plan. Their recommendations included securing tenants in need of a laydown yard, warehousing and/or an ambient storage facilities.To that end, we are actively searching out the ideal tenant. We have enlisted the assistance of our well-connected industry partners in our quest.
To make this all a reality and to be more pro-active we successfully negotiated a $3,000,000 loan with the Alberta Treasury Branch (ATB). The proviso attached to the loan is we first negotiate a lease with a reputable and acceptable tenant for 10 acres. This would take care of the mortgage payments thereby limiting our exposure.
By leasing the remaining 20 acres @ $3,000.00 / acre your return would be approximately 8%....depending on what you paid for your units. That leaves 90 acres to be leased with your ROI ramping up to approximately 32%.
It is quite evident this is a slower process than we anticipated but one worth pursuing, which we do daily. I don't need to remind you that because we have zero debt your investment survived this cycle fully in tack and much stronger.
If you have any questions please don't hesitate to contact me.