McGillivray Real Estate Preferred Distribution Trust

Distributions, Paid Monthly

A preferred equity position in Canadian residential development. Targeted 10 to 12% annualized distributions, paid monthly, with quarterly redemption rights.

$100M+

Deployed

1,780+

Units

$1.75B+

Gross Development Value

1,600+

Investors

10 to 12%

Targeted Annual Distribution

Deployment, unit, development value and investor figures reflect McGillivray Capital Partners across all vehicles. Targeted distribution figure is specific to the Trust and is a target only.

The Trust is designed for investors seeking regular distributions from private real estate through a preferred equity investment.

How the Trust works

A straightforward approach to monthly distributions

01

Investment

Investors purchase units in the Preferred Distribution Trust, with a minimum investment of $50,000 CAD. Investments can be made using cash or registered funds (RRSP, TFSA, LIRA) via Olympia Trust.

02

Deployment

The Trust invests this capital as preferred equity in a diversified portfolio of residential development projects.

03

Distribution

Targeted distributions are paid monthly, or reinvested through the Distribution Reinvestment Plan (DRIP) at a 1% unit price discount.

Position in the structure

Preferred equity, and what that means for you

  • •Paid out ahead of common equity
  • •Predictable monthly cash flow
  • •Tax-efficient distribution structure*

*The Trust is structured with the objective of delivering tax-efficient returns. Distributions are intended to be characterized primarily as return of capital, where appropriate. Actual tax treatment may vary and is subject to change based on the Trust’s operations, tax legislation, and individual investor circumstances. Any references to tax efficiency reflect current expectations only and should not be relied upon as tax advice. Investors should consult their own tax advisors regarding the tax consequences of an investment in the Trust. Please refer to the OM for further details.

Senior debt and project financingRepaid first
Preferred equity. The Trust invests here.Ahead of common
Common equityDevelopment upside
Illustrative capital structure. Actual positioning varies by project and is described in the Offering Memorandum.
Illustrative

Cash distributions vs DRIP

Amount invested $250,000
Select a class to set the amount to its minimum initial subscription.
Cumulative distributions, ten years Class B Units, 11% per annum
Distributions paid in cash
Reinvested through the DRIP, units issued at 99% of net asset value
Monthly distribution
Taken in cash, or reinvested through the DRIP
CashDRIP
Over 12 months
Five years
Ten years
Difference between DRIP and Cash
Management fee for this class:

Illustrative only. Target total net returns are 10% per annum on Class A Units, 11% on Class B Units and 12% on Class C Units, and are targets only. The Trustees have initially set a distribution rate of 10% per annum payable monthly, and the rate and frequency may change on 30 days notice. Subscriptions close monthly and figures above assume distributions begin from the first full month following the applicable Closing. Distributions may be comprised in whole or in part of a return of capital. Figures assume the target rate is achieved and held constant, and are not a projection or a guarantee. Refer to the Offering Memorandum.

The portfolio

Four projects, one discipline

The Trust is positioned in four Toronto residential developments identified in the Offering Memorandum, together representing approximately 1,448 residential units and more than one million square feet of residential gross floor area. Every one sits within walking distance of a subway or GO station. Each project is selected on the same criteria: transit-oriented locations, long-term housing demand.

Renderings are illustrative and subject to change. Underlying properties are those identified as proposed investments of the Partnership in the Offering Memorandum. Project scope, unit counts and floor areas reflect current development concepts and are subject to change through the planning and approval process.

At a glance

Key terms

Target return
10 to 12% targeted annualized, paid monthly.
Timeline
Open-ended, with quarterly redemption rights.
Minimum investment
$50,000 CAD
Funds accepted
Cash and registered funds including RRSP, TFSA, LIRA through Olympia Trust.
Eligibility
Accredited and eligible investors (accredited investors only in Quebec).
Questions

What investors ask

Targeted distributions are paid monthly. These are targets rather than guarantees, and actual distributions will depend on the performance of the underlying projects and on market conditions.

The Trust offers quarterly redemption rights. Please review the Offering Memorandum for the full terms and any applicable notice periods.

The Trust is structured for tax-efficient distributions. Distributions are intended to be characterized primarily as return of capital, where appropriate. Please refer to the Offering Memorandum and consult your tax advisor.

Yes. A Distribution Reinvestment Plan (DRIP) is available at a 1% unit price discount.

The Preferred Distribution Trust offers a preferred equity position designed for recurring monthly distributions with a flexible timeline. The Scott McGillivray Real Estate Funds offer a common equity position designed for long-term capital growth. We are pleased to discuss which structure aligns best with your objectives.

Next step

Request the Offering Memorandum

Eligible and accredited investors can complete the form to receive the Offering Memorandum and learn more. A member of our team will follow up to answer your questions and arrange a call at your convenience.

Canadian Accredited and Eligible Investors