Partnership Bonavista Square

• Bonavista Square, completed in 2000, is a shopping centre in Calgary, Alberta, Canada
• Lease agreements for 97% of the area. 59% of these are 10-year leases and 38% are for 10 years or more.
• A vacancy insurance policy (up to 5% vacancy) has been taken out.
• Total projected yield: 9.4% net annually*.
• Investment horizon of 7 years.
• Participation starting at 15,000 CAD (approx. 9,500 Euros).
• The Homburg Uni-Corp Group’s ample experience and proven expertise provide assurance of excellent management.
• Maatschap Homburg Bonavista Square was set up in late November of 2003.

* This is a projection. The value of your investment may fluctuate. Results attained in the past are no guarantee of future performance.

After two years, a proposal was made to sell the Bonavista Square shopping centre project.
In 2006, it was announced that the exit that provided traffic to the shopping centre would be moved in order to help traffic flow out of the city better. This change would have an adverse effect on the accessibility of Bonavista Square. It is still not known exactly when the exit will be moved. In order to act on this development immediately, we have recommended that Bonavista Square be sold.
Aside from the exit being moved, it has also proven difficult to attract tenants. A number of tenants exhibited poor payment behaviour, which made it an ordeal to collect the rent every month. New tenants are difficult to find and often want a rent-free period, which results in a further reduction in profits.
The proposal to sell was approved by the partners. The sale has now been completed and the partnership is expected to close within a few weeks.
Thanks to the manager’s timely reaction, we attained a total yield of 16.87% before taxes, while the estimates for the entire term indicated a projected gross yield of 12.86%. Another factor is that the exchange rate for the Canadian dollar is currently preferable compared to when the Bonavista Square project was launched, which means a good return is also acquired on the exchange at this time.

Bonavista Square, built in 2000, consists of 7 buildings with a total leasable area of 5,630 m². The entire lot has an area of 23,300 m2. Over 300 parking places are available for visitors.

The Bonavista Square shopping centre is located in south-east Calgary, Alberta, approximately 14 kilometres from downtown. Bonavista Square enjoys good visibility and accessibility from the MacLeod Trail, a 6-lane highway used by 115,000 commuters a day.