Investors in line for Alberta gain

PUBLISHED : Sunday, 06 November, 2005, 12:00am
UPDATED : Sunday, 06 November, 2005, 12:00am

Alberta-based Redev Properties says those who bought into a Calgary shopping complex 21/2 years ago stand to make a capital gain of 44 per cent if a recent offer for the site is accepted.

A vote will be put to stakeholders this week on a bid by a North American real estate investment trust for the 35,880 sq ft Northmount Village shopping mall in northwest Calgary. Investors stand to receive C$72,000 ($471,556) for each C$50,000 originally paid.

The project has yielded 7 per cent annually after deductions for mortgage payments and taxes, according to Brett Cameron, a sales director for Redev in Hong Kong. The project was marketed solely to Canadian investors, but similar projects have been sold in Hong Kong since Redev opened an office in January.

Interest in Alberta real estate, including its corporate headquarters Calgary and the provincial capital Edmonton, has soared on rising energy prices.

Redev is marketing the Whitemud Crossing & Shopping Plaza in Edmonton and the Castleridge Plaza Two in Calgary, both providing rental yield and possible capital gains in five to 10 years.