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Introducing:

GenCap Equity #11Water Crest in Bayside Airdrie

Build wealth from the ground up

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About GenCap Equity Inc

• Former Equity Investment Division

(EI)

of Genesis Land Development Corp.

• 16 year history of real estate

investments• Principles Genesis Experience- working with more than 3000

investors to date-Total Fund Raised 95 M last 5 years-5 LP projects in last 4 years

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GenCap Added Value

• All Investments based on

• The GenCap Model

“Added Value Concept”

• Raw land to rezoned or

• Building on developed

land

• Always adding value to

investor’s land

• Genesis Land

Development is

contracted to consult on

our projects

Added Value Concept at Work

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• $45,000/ acre in 2003

• $69,000/ acre in 2006

• 51% profit / 3 yrs

• Rezoned Agric to Comm.

Raw land purchased by investors and rezoned

Added Value Concept at Work

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• $30,000 /ac in 2005

• $50,000 / acre appraisal - Mar. 2007.

• East Freeway now complete

• commercial/industrial corridor designated by county

Raw land purchased by investors and rezoned

Added Value Concept at Work

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Building on Developed land

Tara Lake Junction• Land Purchased late

2006

• Return for investor

by end of 2008

Equalled 27%

• Average return of

11.7% /ann.

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• Sold out 2008 - 2 years

almost 24%

• in 2010 moved to JV with

Genesis for profit

sharing of recreational

lots and condos.

Added Value Concept at Work

Raw land purchased by investors and rezoned

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Raw land purchased by investors and rezoned

• 44 M sold.  

• Long term rezoning project.

• 5-7 years.

Added Value Concept at Work

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Genesis Past Project Summary

Projects Fund Amount

Dates Raise Return

GLP 1 & 2N. Calgary (Balzac) Commercial

$3,300,000(3.3 M)

200315 Months 51% /3yrs

GLP 4 & 5Northeast Calgary Lands – 615 ac.

$9,000,000(9 M)

200510 Months

67% increase1st 2 yrsOngoing

GLP 6 & 7(7 Const. JV)

$25,000,000(25 M)

2006 12 Months 27%(Project Based)Ongoing

GLP 8 & 9(Radium/Finan. JV)

$10,850,000(10.85 M)

2007 3 Weeks24% /2yrsOngoing

LPLP 2007 – 937 ac.Airdrie/Delacour

$72,000,000(43 M)

2007-2008 12 Months New ProjectOngoing

91.15 M Raised in 4 Years

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Genesis Land

Genesis Land Development Corp.

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Genesis Divisions

Entry level homes

Estate homes

Move-up homes

The Builders Group

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Genesis Divisions

Commercial division

Multi-family

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Commercial Division

Sage Hill Crossing

• 117 acres of mixed use

• 1.2 million sq ft of commercial retail

• 950,000 sq ft of office commercial office

• 4,400 Multi-Family Units

• Transit Hub

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The Alberta Economy

Taking advantage of a stronger economy

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Alberta/Calgary Advantages

• Oil Capital – 90% Canadian Oil Company HO• Second Largest Head Office Center in Canada• Calgary Metro Population Approx. 1.4 Million• Distribution Hub for Western Canada• Movie Industry and Tourism: Banff, Jasper• Alberta Wheat – Major Global Producer• Alberta Beef – World Famous 40% of Canadian• High Tech – Oil & Gas IT, Over 2600 Companies• Major Oil Pipelines to West Coast and U. S. • No PST tax

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The Ideal Investment

What should we look for?

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What should investors look for?

1. Security• Hard assets …

Land• Developed

Land• No

speculation on value

• Liquidity• In a

“Growing Community”

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What should investors look for?

2. Fixed Return• Turbulent

economy provides no guarantees in the stock market and in mutual funds

• 20010 and 2011 will provide uncertain returns

• Fixed return provides stability in a portfolio

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What should investors look for?

3. Tax Savings

• Capital Gains… ½ of net capital gain taxable

• Capital Loss offsets a Capital Gain

• Loss carried forward Indefinitely “A Capital Loss cannot be applied

toward income. It can only offseta Capital Gain”

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An Ideal Investment provides:

1. Security through Direct Ownership of Serviced Land

2. Fixed Return

3. Capital Gains

GenCap Equity # 11 Provides all 3

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Introducing GenCap Equity # 11

In Bayside, Airdrie

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The City of Airdrie - Location

• On the Calgary – Edmonton Corridor CANAMEX Highway with 6000 vehicles /day

• Minutes from Trans-Canada Highway

• 15 Minutes to Airport, • Under 30 min delivery

time to down town Calgary

• 24 hour delivery time to major world markets

Airdrie

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The City of Airdrie – Land Supply

• 6 Business Parks• 4 New Business Parks

ready for development• Gateway Commerce

Centre• Highland Business

Park• Kingsview Business

Park• Sierra Springs

Industrial/Commercial

GenCapEquity # 11

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The City of Airdrie

• Population 38,091 in 2009

• Fastest growing City in Alberta

• 8.6% Ave. ann. Growth over past 5

years

• 80% of residents under the age of

50

• The median family income is

$83,271

• Vacancy Rate, 4.3%, Aug 2009

• Vac. Rate, 0%, Affordable Rent,

Aug 09

Growth, Pop & StatsYear Actual

PopulationAnnual

PercentageGrowth

Increase

1998* 17,519 4.70% 7871999 18,306 4.49% 7872000 19,165 4.69% 859

2001** 20,382 6.35% 1,2172002 21,979 7.84% 1,5972003 23,680 7.74% 1,7012004 25,606 8.13% 1,9262005 27,069 5.71% 1,4632006 29,035 7.26% 1,9662007 31,512 8.53% 2,4772008 34,116 8.26% 2,604

2009 38,091 11.65% 3,933

Source: City of Airdrie Civic Census *Not a census year.  **Estimated figure from Statistics Canada.

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GenCap Equity #11 Joint Venture

Overview• Investors own a serviced Multifamily Lot • Enter into a joint venture with builder• Share in profits with the builder. • 50 % to Builder / 50% to GenCap Equity

# 11.

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2005 Best New Community

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Bayside in Airdrie

Water Crest

Shopping

Ctr.

Sam Award Finalist

Best New Community

The Breeze

N

Yankee Valley Blvd

Nose Creek Elementary School

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Bayside – Lakefront Commercial

Airdrie, AB• Land use approved.• 5.5 ac. neighbourhood

retail• Attractive maritime

theme• Targeted tenant mix

– Financial institutions– Drug store– Coffee shops– Medical Office– Pubs / Restaurants– Specialized stores

• Water front boardwalk

• Fall 2010 projected opening

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Multifamily Project

• 8 Acre Multifamily Lot• Approved for 207 Condo Apt.

Units• Flexible unit mix to maximize

investor returns• Underground Parking• Recreation Area • Canal & Mountain Views• Quiet Location• Entrance Facing the Canals• Multi Buildings Design• Easy Access to All Major

Amenities• 2 Minutes to Lakefront

Shopping• Affordably Priced

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Water Crest Concept

4.8 Acre Lot36 Town Homes, 89 CondosUnder Ground Parking

The Breeze

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Similar Development

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GenCap Equity # 11

Building On Success

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• Genesis Place Wellness & Sports

• $2 Mil contributed By Genesis

• Close Relationship With City of Airdrie

Genesis Place - Airdrie

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• 1 million sq. ft shopping centre

• Racetrack / Recreation

• Industrial Park

• 3500 New Jobs

• 1500 More

Airdrie

Eas

t F

reew

ay

Int’lAirport

Cross Iron Mills

Cross Iron Mills

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Airdrie

Cross Iron Mills

BalzacN

Steady Employment Growth

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Calgary

Cross Iron Mills

S

StoneGate

Close to Calgary

Race Track

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StoneGate Announcement

• StoneGate Landing (Dev. By WAM Development and AIMCo.)

• Massive $3 Billion mixed-use Retail, Office , Hotel, and Industrial Development

• Biggest in City’s History• 1100 acres Commercial in

Total• 1.5 mil. sq. ft. Retail• 2 mil. sq ft. Office• 10 mil. sq ft. Industrial

Park• Approx 20,000 people will

be employed in StoneGate Landing

• Only 8 minutes to Water Crest

WaterCrest

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Airdrie is a Growing Community

Employment Opportunities

CrossIron Mills5000 new jobs

StoneGate Landing 20,000 new jobs

CrossIron Mills

Gateway Commerce Centre

Gateway Commerce Centre500+ new jobs **1 of several new industrial parks in the Airdrie area

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Calgary Ring Road

• Access from the north end to east and west sides of the city completed Fall of 2009

Stoney Trail Expansion Project

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Lakefront Shopping Ctr.

School

• 1 Min to Lakefront ctr• 2 Min to Airdrie Mall• 3 Min to HWY 2• 5 Min to Cross Iron Mills• 7 Min to Stoney Trail• 8 Min to StoneGate• 12 Min to Sage Hill Crossing• 15 Min to Airport• 25 Min to Downtown Calgary

Location Location Location

Water Crest

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GenCap Equity #11 Investment Summary

Offering Memorandum (OM)

• 9.2 Million Fund Raising Project

• All Funds Trust Into Miller Thomson

LLP

• Corporate Format – Share Units

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Investment Types

• Cash• RRSP, RESP, RIF, LIRA

• TFSA Tax Free Savings Account ($5000)

Minimum $10,000 Investment

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Introducing TSFA

• Any Canadian over 18 will qualify

• Eligible for $5000 contribution ‘every year’

• All profits from that $5000 are 'tax free’

• Can carry over to next year ie: ‘$10,000’ 

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RRSP Investments

Minimum $10,000 Investment:• From ‘existing’ Self Direct RRSP Account

• ‘Yearly Eligible’ RRSP Contribution • Or combination of Both Above

• Using existing Self Direct RRSP Account • Open Self Direct RRSP with Olympia

Trust, CWT

• Document & Forms available from your consultant

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Return Summary

• 8% Fixed Return Per Year2009 through June 30th 2011 *Qtr payments (4 payments/yr)2% per payment (Every 3 Months)* First 2.5 Yrs Return – Investment Dividend

• In the 3rd year & on – Quarterly Returns of Capital - based on salesReturn Of Capital = No Tax

• Overall Profit Split at the end of the ProjectProfit Split = Capital Gain

Our goal is to provide above average return

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3 Mos

TIME(Month)

GenCap 11 Project

Start

3 Mos

3 Mos

3 Mos

3 Mos

3 Mos

3 Mos

3 Mos

8% 8%Principal Return

Rest of Profits Split

Capital Gain

EST. 1.5 Years More

Accounting Time

GenCap 11Close

Principal Rtn.

Completed

Construction & Sales

Completed1st Year 2nd Year

2% 2% 2% 2% 2% 2% 2% 2%

Investment Amt. Rtn.

GenCap Equity #11 Annual Return

Return Summary

Dividend - Investment Return

2009 2010

3 Mos

Investment Amt. Rtn. 3 Mos

2011

3rd Year

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Project Summary

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Better Strategies for Development in a Challenging Economy

GenCap Strategies for Success

More Time for the Sale of ProductLonger sales cycle for condos allows for flexibility and a more realistictimeline for project completion in the current economic conditions

Concessions to Help and Encourage BuildersBuilder will not be required to purchase or finance the multifamily lotor carry costs other than their cost to market and build condos and town homes.

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GenCap Investment Features

1. Direct Ownership of Assets• GenCap Equity # 11 owns the land, investors own

preferred shares in GenCap Equity # 112. Fixed Rate of Return

• 8% annually, 2% quarterly until Jun 30th 20113. Return of Capital after 2nd Year

• Early return can be reinvested while still earning here4. Capital gain on after 2nd Year

• 50% taxable / Offset a capital loss5. Realistic Construction Timelines

• Flexibility allows for changes in market conditions6. History of Success

• Principles have a 17 yr. History of successful investment offerings“Every subscriber”, in the last 17 years, has increased their wealth

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Questions & Discussion

Thank You!www.gencap.ca