/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES/
An exceptional opportunity to gain exposure to the undervalued North
American real estate sector
TORONTO, March 4 /CNW/ - Front Street Capital is pleased to announce the launch of the Front Street Real Estate 2008 L.P. The Partnership has been formed to provide exposure primarily to the North American real estate market.
Real estate related securities are attractive because of opportunities created from the volatility in global credit markets. Certain assets are currently undervalued and negatively affected by perceptions of risk. These securities and properties have strong potential for improved yield, not fully reflected in current valuations.
"The current disruption in the financial markets has caused valuations of certain equity and debt securities, of both public and private real estate investments to fall to levels not seen since early this decade. This situation presents an exceptional opportunity for Canadian investors," said Eric Dzuba, Portfolio Manager, Front Street Capital.
The Front Street Real Estate 2008 Limited Partnership will give investors exposure to three compelling areas of the real estate market.
1. Public Real Estate Securities on a Long/Short Basis
Real estate securities are at multi-year low valuations and look very attractive. REIT yields are compelling in this lower interest rate environment.
2. Private Real Estate: US Rental Apartment Communities
Poor lending standards in the US allowed people to buy houses with no money down and created the sub-prime mortgage market. Lending standards are now changing and the sub-prime space is being eliminated as people are losing their homes due to foreclosures. The end result? People are leaving their homes and returning to rental accommodations.
3. High Yield US Real Estate Securities
Forced liquidations and a need for liquidity are causing sell-offs to occur on good-quality credit. This presents an opportunity to capitalize on deep discount valuations.
Objective
To achieve capital appreciation and income over a 5-year term through investment, directly or indirectly, in a diversified portfolio of publicly traded and privately held real estate securities with exposure primarily in Canada and the United States.
Why a Limited Partnership Structure?
A) Tax Free rollover into a corporate class group of funds at L.P. termination date
B) An allowance for a position greater than 10% in private assets
C) Ease of purchase: Units will be available at $25.00 with a minimum order of $5,000
Front Street Capital
Based in Toronto, Front Street Capital is a focused and dedicated alternative asset class management firm. With CDN $2.7 billion in assets between various sector and strategy-specific funds, Front Street Capital is a leading Canadian alternative asset firm that strives to provide investors with superior returns while reducing overall risk.
Additional Information: The prospectus for the Limited Partnership is available on SEDAR, at www.frontstreetcapital.com, or by calling Front Street Capital at 1-800-513-2832.