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SOURCE Cranson Capital
TORONTO, Oct. 16, 2013 /CNW/ - Cranson Capital Securities is pleased to announce today that Plazacorp ("Plaza"), a leading residential condominium developer, has completed its King West Condominium development in the revitalized Liberty Village neighbourhood achieving profit of $143 million and a 233% return for its base of accredited investors.
Plaza requires significant capital for its projects and traditionally, developers obtain equity financing from institutional investors and finance the balance of their projects through banks and mezzanine debt lenders. Plaza's capital raising strategy evolved significantly over the past few years since the collapse of the international financial services firm, Lehman Brothers. After Lehman stopped financing the Toronto developer market, Plaza re-evaluated the financial landscape and looked for capital elsewhere. Traditional sources of equity from large institutions were no longer available so Plaza pooled together a group of high net worth investors and offered them an opportunity to invest in their projects.
In May 2007, Plaza successfully raised a total of $31 million dollars from over 150 accredited investors for a 1633 unit residential condominium project in Liberty Village, Toronto. The project took six years to complete, and investors were able to more than triple their money. The annual internal rate of return for this investment is 22% surpassing most investment opportunities that would be available to investors during this time period.
One investor, Paul Godfrey, Chief Executive Officer of Postmedia commented, "Investing in Plaza's development projects has significant upside potential for investors and I'm extremely pleased with the returns I have made on my investment to date. Cranson Capital and Plaza have made investing in this unique funding structure easy for investors." Investors initially take on more risk while the project obtains enough pre-sales to launch construction, but once construction begins, the investors risk is significantly reduced. Investing with Plaza, one of Canada's leading developers with the experience and a proven track record of success further mitigates the investment risk.
"Plaza has a unique funding strategy that looks to a community of accredited investors to help finance their projects," commented Devon Cranson, President of Cranson Capital Securities. "The success of the Liberty Village development is a testament to Plaza's experience and expertise. We're proud to be their exclusive agent and are able to bring these types of lucrative investment opportunities to our investor base."
"We are very pleased with the success of the Liberty Village project and with the return on investment that we were able to achieve for our investors," commented Anthony Heller, President of Plaza "We look forward to a continued relationship with Cranson Capital Securities, and working with them on financing future development projects." Cranson Capital is the exclusive investment bank affiliated with Plaza and the only investment dealer involved in raising funds for their projects.
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small and medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support our investors and entrepreneurs. Cranson Capital Securities is registered with the Ontario Securities Commission as an Exempt Market Dealer and specializes in raising capital from accredited investors for private placements in real estate developments, technology start-ups and high growth companies. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for our entrepreneurs.
Plaza is one of Toronto's most experienced residential condominium construction and development organizations with over 7,000 condominium suites either already completed or under construction. Since 1982, the Plaza philosophy of providing a high level of standard quality in every condominium built has made its name synonymous with lasting value. Plaza was among the first condominium developers and builders in Toronto to include such finishes as granite counters and floors, marble bathroom counters and floors, halogen lighting, under-mount sinks, porcelain tile, engineered hardwood floors and stainless steel appliances as standard features rather than costly upgrades. Plaza developments can be found in many of Toronto's most desirable urban neighbourhoods including Yorkville, North Toronto, King West, Queen West, Lawrence Park, Liberty village, St. Lawrence Market, Harbourfront, and Mt. Pleasant village.
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