Holdun Funds Real Estate SP 01

Executive Summary Q1 2020

Investment Overview

  • Holdun Funds Real Estate Segregated Portfolio 01 (SP01) specifically invests in real estate within the United States that is utilized to increase the number of drug treatment programs available for those seeking a solution to opioid dependency.
  • SP01 initially acquired several locations and anticipates acquiring and converting a total of 10 -15 locations that have been specifically zoned and refurbished to provide drug and alcohol medical treatment.
  • Investors in the SP01 receive attractive returns while providing equity necessary to acquire additional optimal locations for drug medical detox operators.
  • The fund is structured as a Closed-end Fund with a 5 Year term with an optional 3-year extension.
  • The portfolio initially purchased 4 properties as cash transactions utilizing the proceeds from the initial offering.
  • In connection with this Offering, Holdun is seeking contributions for the Portfolio (from Investors, an aggregate amount of US$17,000,000.00, the ‘Second Offering Amount’)

Problem

OPIOID ADDICTION

70,000 deaths in 2018

DRUG DETOXIFICATION

Outpacing the availability of beds

Social Impact

FAMILY IMPACT

Breaks family bonds

ECONOMIC IMPACT

$78.5 billion/year in the U.S

DRUG DETOXIFICATION

Emergency resource systems on overload

Investment Highlights

 

  • 12-14% Anticipated 5-Year Annualized Return
  • 5-Year Term. Single 3-year optional extension
  • A U.S. Withholding Tax exempt Fund structure
  • Target Dividend of 3% per annum
  • All properties currently leased to credit worthy Medical Detox Operators and Sober Living Operators
  • Long-term NNN Leases
  • 3% rent escalations provide annual increases in revenue

Q1 2020 Fund Update

 

  • As market uncertainty spreads as a result of CoVID-19, traditional assets have experienced unprecedented volatility. Despite this volatility, the Fund has not experienced any negative impact from the Coronavirus pandemic and anticipates that any future impact will be negligible.

CoVID-19 Update

 

Our tenants are currently near capacity (97%) across all Detox Centres, and there has been an uptick in demand for services over the last 30 days.

As ‘Essential Businesses, all our tenants will remain in operation during lock-down as a licensed healthcare facilities, our tenants can avail of federal funding, supplies, and additional staffing support.

  • Over Q1 2020 SP01 realized 100% rent collections from the four properties totalling $356,759.85.
  • The current valuation of SP01 as of March 312020 is $7,282,743.20 representing a Net Asset Value (“NAV”) of 10.14 representing a 1.4% return for the quarter.
  • Quarterly distributions set to commence at the end of Q2 2020 with the anticipated distribution to be in the $.05-$.0625 per share range.
  • The 5 Year Total Return projection will be achieved through increased valuation of each property as a result of the annual scheduled 3% rent rental increases

Acquired Properties

THE PROPERTY THE TENANT ACQUISITION COST CAP RATE
3163 Canada Court, Lake Worth, Florida Recovery Unplugged Holdings, LLC $6,024,555 7.25%
3150 Prince Drive, Lake Worth, Florida Palm Royal Behavioral Health, LLC $1,273,276 7.5%
4461 Medical Center Way, West Palm Beach, Florida Holistix by the Sea, LLC $3,954,542 7.25%
900 54th Street, West Palm Beach, Florida Allure Detox $3,807,871 7.25%

Pipeline

The Fund anticipates additional acquisitions of the following in the coming months:

THE PROPERTY THE TENANT ACQUISITION COST CAP RATE
1401 N.W. 9th Ave, Boca Raton, FL Boca Detox, LLC $7,586,206.90 7.5%
255 Wilson Pike Circle, Brentwood, TN Recovery Unplugged Holdings, LLC $7,938,461.54 7.5%
HOLDUN