Business
Mainstreet Equity Corp. announces proposed investment in United States focused real estate fund
/NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ ...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n THE UNITED STATES/\n\n\nCALGARY, June 18, 2012 /CNW/ - Mainstreet Equity Corp. (\"MEQ\") (TSX:MEQ) announces that in connection with the proposed offering of\n up to $75,000,000 of trust units (\"Offering\") of Mainstreet US Multi-Family Residential Fund (the \"Trust\"), an unincorporated private investment trust formed under the laws of\n the Province of Alberta, MEQ intends as a condition of the Offering to\n subscribe for 10% of the Trust units issued under the Offering which,\n assuming completion of the target offering would be a contribution to\n the Trust of $7,500,000.\n\n\nThe Trust (indirectly through an income tax effective limited\n partnership structure involving a Canadian limited partnership and\n various US limited partnerships which will require no U.S. tax filings\n for Canadian investors) intends to acquire, renovate, upgrade and\n re-position real estate properties in the United States, using MEQ's\n \"Value Chain\" business model in order to generate income and the\n possibility of capital appreciation for Trust unitholders.  The Trust\n intends to focus primarily on the acquisition of multi-family\n residential properties and the associated residential real estate\n markets in the United States, with an initial emphasis on the\n re-covering sunbelt regions of Arizona, Florida, Georgia, Texas and\n Nevada, although the Trust may indirectly invest in other United States\n residential real estate assets, such as single-family houses.  The\n Offering is a blind pool as the specific properties and assets in which\n the Trust intends to invest (through its subsidiary entities) have not\n yet been identified.\n\n\nIt is intended that a wholly-owned subsidiary of MEQ will act as the\n general partner of a master Canadian limited partnership to indirectly\n hold the underlying US real estate assets.  As the general partner, the\n MEQ subsidiary will share in the profits of the underlying assets,\n after certain hurdle rates are met in respect of distributions to Trust\n unitholders.  In particular, after the payment of an annual preferred\n return of 8% to Trust unitholders (including MEQ) (which accrues if\n unpaid) and repayment of an amount equal to their initial investment\n (including MEQ), the MEQ subsidiary...