Holdun Funds Real Estate SP 01

Executive Summary Q2 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 4 properties following the initial offering 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.

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

Q2 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.

Our tenants are currently near capacity across all Detox Centres, and there has been an uptick in demand for services since the pandemic began.

As ‘Essential Businesses’, all our tenants will remain in operation during the lockdown. As licensed healthcare facilities, our tenants can avail of federal funding, supplies, and additional staffing support.

  • Over Q2 2020, SP01 realized 100% rent collections from the four properties totaling $388,169.44
  • The current valuation of SP01 as of June 30th, 2020, is $7,448,055.40. The Net Asset Value (“NAV”) as of June 30th, 2020 is 10.41, representing a 2.66% return for the quarter and a 4.1% return YTD.
  • Quarterly distributions commenced at the end of Q2 2020 with an initial distribution of $0.05 per share.

Acquired Properties

 THE PROPERTY THE TENANT CAP RATE
3163 Canada Court, Lake Worth, Florida Recovery Unplugged Holdings, LLC 7.25%
3150 Prince Drive, Lake Worth, Florida Palm Royal Behavioral Health, LLC 7.50%
4461 Medical Center Way, West Palm Beach, Florida Holistix by the Sea, LLC 7.25%
900m 54th Street, West Palm Beach, Florida Allure Detox 7.25%

Pipeline

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

 THE PROPERTY THE TENANT CAP RATE
255 Wilson Pike Circle, Brentwood, TN Recovery Unplugged Holdings, LLC 7.50%

Over Q3, the Fund will be finalising the purchase of 255 Wilson Pike in Brentwood Tennessee. This is a 20,0000 sq. foot residential drug detox centre. A long term lease has been agreed with Recovery Unplugged. The NNN lease includes four 5% annual rent escalations and 3% rent escalations thereafter.

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