Corporations & Syndictes

Corporations and Syndicates

Corporations and syndicates alike have recognized for years the value in real property as both an inflation hedge and a potential profit centre within their well diversified portfolios. In a recent report known as the “Grosvenor’s Resiliency Index” which measures the resiliency of various economies, it was stated that “Canada as whole is doing exceptionally well. The top 3 most resilient cities in the world are Vancouver, Toronto and Calgary. For investors in investment grade real estate, Canada continues to be a very sound long-term investment market. Thorough and functional understanding of the many pieces of legislation and reporting requirements that regulate the way these types of assets are managed are a necessity to ensure that shareholder or investor’s gains are maximized.

Financial Requirements

Revenue Canada Reporting requirements are continuously changing and staying on top of the most recent reporting requirements is a necessity.

While a professional accounting firm will know the technicalities of what is required for financial reporting, such as tax remittance and income reporting, knowing what types of expenses can be recovered from the tenants of the property based on the type of asset held in the portfolio, audit requirements, and mortgage requirements is often better understood by a real estate professional.

Managing agents will have access to dedicated software to produce accurate reports for your investors, as well as property specific financial statements that can be simply and seamlessly integrated into your corporate records.

Legal Requirements

There are many different pieces of legislation including, but not limited to, the Residential Tenancy Act, the Personal Information and Privacy Act, and the Commercial Tenancy Act, which continuously change and update. Hiring a professional to handle negotiations and preparation of legal documents such as leases is more than just a smart thing to do, but can often save you time, money, and potentially volatile liability issues down the road.

If not prepared correctly, a commercial lease can be registered on land title against the property and affect your ability to transfer title, sell, or refinance a property.

Licensed managing agents will be familiar with the various legislative requirements and limitations with regards to what can or should be written into a lease at a fraction of the cost of hiring a lawyer.

Goals and Objectives

Determining a strategic vision for the asset, if none is in place, and knowing how to make that vision a reality is key to ensuring that your asset is being prudently managed for the shareholders.

Managing professionals are not only aware of what is happening with the market, but what types of influences can affect your property. Location, demographic and economic trends are all topics that an expert manager takes into consideration. Your property manager should be aware of how a down market could affect your rentals, if your property is located in an area that has an oversupply issue, or if there any upcoming developments in the neighborhood that could affect your rental capabilities.

Furthermore, your managing agent should be aware of where your asset stands in comparison to other similar properties in the area, of what types of value creation ideas can be put into place to give your property an edge over those that it is in competition with.

Martello has been a trusted and accountable real estate advisor to corporations, pension funds and syndicates for over 25 years. Our collaborative method of managing client assets allow our team of seasoned portfolio managers to provide the highest level of advisory services, customized to each clients unique goals and objectives including the implementation of long term repositioning strategies within the market.

We work closely with our clients to establish a strategic vision for the asset if none is in place, and to work towards making that vision a reality by utilizing our mangers creativity and skills. This focus on value creation has allowed our clients to benefit from an average increase in net operating income of 10% in the first year of bringing us on board.

Over 90% of our new Clients come to us through referrals. If you haven’t been referred to us directly, have a look at our extensive library of case studies that show not only what we have done, but also what our clients have to say about us.

Case Studies