ComplaintsforRedev Properties Ltd.

• Initial Complaint

  01/11/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I have been attempting to receive Tax Forms T216 and others from Redev Properties for months. They are required by law to provide me with the above forms in order that I am compliant with the CRA in filing my taxes on time. After several attempts, emails, phone messages, they have refused to respond or provide me the tax forms in a timely fashion. I am currently non-compliant with the CRA, and still Redev will not respond to my requests or provide me with the forms. They have also stopped paying any dividends or interest on my investment made in 2013. They are not cooperating or fulfilling any communication requests on my investment. This is a disgrace of a company and I caution anyone to do business with them.

  Business response

  02/11/2023

  Please note all required tax documentation was provided to the Canadian Revenue Agency in Q1 of 2022 as required. To our knowledge all requested tax documentation has now been provided to **** *********. 

   

   

• Initial Complaint

  06/07/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  The company Redev Properties have sold numerous clients a percentage ownership in a shopping mall center in Edmonton, Alberta called the ********* ******** ******* The initial sales pitch was the exit strategy would be to sell the shopping center in 5-8 years, returning the principal investment plus any earnings to the investors. The company Redev Properties have not adhered to their timeline for selling the property. I invested 9 years ago and there is still no intention of selling the ********* ******** ****** to return money to the investors. They also have very poor communication in terms of outlining any strategy for sale of the property, or the current market value of the property. They have tied up the money of the investors for longer than expressed, and are not being transparent in any future sales strategy of the property. I'm not recieving any profit shares and I can't get a hold of anyone from the company. I've tried to get a hold of the company but no one is answering phone calls and emails.

  Business response

  12/07/2023

  Hello ******* *****, 

  The nature of the time frame provided for the ********* ******** ****** located in Edmonton, Alberta during the initial investment stages was a projected timeframe based on past projects and anticipated plans at that time, we would like to elaborate further on the nature of this timeframe and our plans moving forward. 

  Our mandate as General Partner of the ********* ******** ****** is to maximize the market value of our properties under management. As such, it is our responsibility to not sell a property unless all short-term and medium-term value-adds have been completed. Generally, to accomplish these short-term and medium-term value-adds we generally require between 8-10 years to fully maximize value on a project. This timeframe is estimated based on the nature of commercial real estate whereby a property is valued based on the net operating income it generates. As such, the main source of increased value at our properties are due to increasing the rental rates achieved over time. Due to the leases generally averaging 5-10 years in length, it takes quite some time to turn-over the leases at the property and achieve these rates. 

  For the ********* ******** Centre, ReDev Properties initially anticipated an ownership horizon of five to seven years based on our evaluation of the past performance of the property and the properties leasing structure at such time. All marketing materials qualified this anticipated ownership horizon by indicating that this time was based on past performance which does not assure future performance. As such, all limited partnership units were sold to investors without a specified term and would continue to exist until the property is sold. At the time of your investment and the determination of the anticipated an ownership horizon it was not expected that the Canadian and Albertan economy would be in a recession for a number of years since 2014. This made market conditions unfavourable for an exit without taking significant losses. In addition to such recession, the current economic climate continued to be unfavourable to the market value of the ********* ******** ****** due to the downturn of the commercial real estate market fuelled by the Covid-19 pandemic and raising interest rates. Restrictions implemented as part of public health measures in Alberta affected several tenants in ********* ******** ******, especially those tenants in food & beverage and personal cares businesses. In Alberta, mandatory provincewide restrictions were in effect in all regions to protect the health system and slow the spread of COVID-19. Several tenants have decided to vacate the premises due to the hardships brought on by the COVID-19 restrictions while others required free rent inducements to remain at the property. 
  These events have hindered the possibility of a disposition of the property on the timeline provided in the marketing materials. The management team understands that some investors will like this to be disposed of soon and due to that, our team is currently exploring exit several options to ensure value is derived for the owners like yourself. While we continue to maximize the value of the project, we are in ongoing communication with several commercial real estate brokerage firms in connection with the sale of the property to continually evaluate the demand for the sale of the property.  

  Please note while your interest in the ********* ******** ****** can’t be liquidated on demand due to the fact that they aren't publicly listed as you own part of a real estate title not shares in a company, if this timeframe and our plans moving forward do not align with your personal investment strategy, your interest in the property can be sold to a private buyer. We help facilitate this process by listing your interest in the property for sale in our semi-annual newsletters that go out and put potential buyer shows in direct contact with you. We do this to facilitate an exit considering this is an illiquid investment.

• Initial Complaint

  13/07/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  Myself and wife and my mother in-law invested in a limited partnership in two properties managed by Redev Properties.. ******* Plaza , Calgary in 2005 and ******** Square in Guelph Ont. 3 units. When first invested , we were told to expect our principal and profit back within 5 to 8 years. Initially we got quarterly income from both properties. is was stopped during the pandemic and was resumed again on one property but not the second one. Have tried so many times to reach out to Redev but no one calls back. We want to know why the managing principal does not want to sell these malls and give us back our investment. Two of the units in ******** used to belong to my mother in-law and when she passed away in 2010, we contacted the company to liquidate hers but was told to find a buyer by ourselves and that was impossible. Finally it was assigned to my wife.. presently myself and wife are retired and that investment was suppose to be part of our retirement income. Are we suppose to get it when we die like my mother in-law that never got her money back?

  Business response

  22/07/2022

  Business Response /* (1000, 6, 2022/07/15) */ Our goal as General Partner of ******* Plaza and ******** Square is to maximize the market value of our properties under management. As such, the opportune time to sell a property is once all short-term and medium-term value-adds have been completed. To accomplish these short-term and medium-term value-adds we generally require between 8-10 years to fully maximize value on a project; however, this timeframe is flexible and as such all limited partnership units are sold to investors without a specified term and continue to exist until the property is sold. This timeframe is estimated based on the nature of commercial real estate whereby a property is valued based on the net operating income it generates. While we continue to maximize the value of the project, we are in ongoing communication with several commercial real estate brokerage firms in connection with the sale of the property to continually evaluate the demand for the sale of the property. Due to the downturn of the commercial real estate market fueled by the Covid-19 pandemic, inflation and increasing interest rates, market conditions are currently unfavourable for the disposition of the property. Given the uncertain times we currently find ourselves in, an exact time frame cannot be provided and we appreciate your ongoing and continued patience. If this timeline does not align with your financial goals and you wish to sell your units, we will work to facilitate the sale of your interest to another investor by listing it for sale in our quarterly newsletters that go out and if a potential buyer shows interest we will act as an intermediary between the parties. We do this to facilitate an exit considering this is an illiquid investment. We appreciate your ongoing patience in the interim. Consumer Response /* (3000, 8, 2022/07/18) */ (The consumer indicated he/she DID NOT accept the response from the business.) Thanks for getting back to us soon. Since the original presentation by the Redav sells man was wrong, and we had made the investment on the understanding that we can get our principal and whatever return made on it between 5 to 10. yrs.. And now it is about 17yrs and no hope of return. Please we will like to have our units disposed off. Let Redev sell our units for us. Thanks Business Response /* (4000, 11, 2022/07/21) */ Please note that any anticipated timelines or forward looking information provided in marketing material is an estimate based on our analysis of the property at the time of sale and subject to change. As mentioned previously, this is why all limited partnership units are sold to investors without a specified term and continue to exist until the property is sold. Since the current timeline for the property no longer aligns with your financial goals, as requested, we will list your units for sale in our quarterly newsletters and if a potential buyer shows interest we will act as an intermediary between the parties. We appreciate you patience. Consumer Response /* (2000, 13, 2022/07/22) */ (The consumer indicated he/she ACCEPTED the response from the business.)

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