Return On Innovation Advisors Ltd. Announces the Successful Completion of the Reorganization of ROI Canadian Mortgage Income Fund, ROI Canadian Real Estate Fund, ROI Canadian High Income Mortgage and ROI Institutional Private Placement Fund

Jul 08, 2014, 09:16 ET from ROI Capital

TORONTO, July 8, 2014 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital"), the manager of ROI Canadian Mortgage Income Fund (TSX:RIL.UN), ROI High Income Mortgage Fund (TSX:RIH.UN), and ROI Canadian Real Estate Fund (TSX:RIR.UN) (each, a "Fund" and collectively, the "Listed Funds"), is pleased to announce the successful completion of its previously announced reorganization ("the Reorganization") of the Listed Funds and ROI Institutional Private Placement Fund ("ROI IPP").                                               

In connection  with the Reorganization, Dream Asset Management Corporation ("DREAM") acquired the right to manage the Listed Funds and ROI IPP, along with the indirect transfer of approximately $725 million in assets from the Listed Funds, their relevant underlying reference funds, and ROI IPP (collectively the "Funds") to the new TSX listed Dream Hard Asset Alternatives Trust (TSX:DRA.UN).

"The successful completion of the reorganization marks a milestone for unitholders" says ROI Capital President Wilfred Vos. "The new Dream Hard Asset Alternatives Trust provides unitholders with tax efficient income from a growth oriented portfolio of hard assets including private commercial mortgages and real-estate, managed by an industry leader, DREAM."

As part of the Reorganization, and based on the net asset value ("NAV") for each of the Funds on July 3, 2014, unitholders of the Funds received today:


pro-rata units of DRA.UN;


a special cash distribution equal to 10% of the NAV of each respective Fund totaling more than $87 million; and


pro-rated monthly cash distribution for the period of July 1, 2014 to July 7, 2014.

"Our goal has always been to do what is best for unitholders and we believe the successful completion of the reorganization is evidence of that" says Vos. "Since listing our three funds, our unitholders have received over $570 million in cash payments through distributions, the annual redemption, as well as the market repurchase program." 

With the successful completion of the Reorganization, the Listed Funds have been terminated, will be delisted from the TSX and will cease to be reporting issuers.

About ROI Capital

Established in 2002, ROI Capital is a privately held Canadian investment management firm that specializes in commercial mortgages, loans and private real estate investments. With a deep understanding of the fundamentals of the commercial real estate market, ROI Capital strives for capital preservation while seeking to deliver sustainable income and long-term returns for investors. This is achieved by primarily focusing on income-producing properties in large urban markets. ROI Capital has created a bridge between investors seeking the income potential from alternative investments and borrowers in Canada's flourishing commercial real estate sector seeking non-bank financing. In just over a decade, ROI Capital has financed over $1.7 billion (as of June 30, 2014) across approximately 200 private commercial real estate investments and has continuously delivered value and income to investors. For more information:

Certain statements included in this news release constitute forward-looking statements, including statements relating to the Reorganization. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. ROI Capital undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in any Fund will earn any positive return in the short or long term nor is there any guarantee that the Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.