ROI Land Investments Ltd is a diversified real estate land development investment company with a unique business model. Summed up, its business model consists of acquiring attractive land, obtaining the necessary development permits, outsourcing the development of the infrastructure and profiting from the sale of the subdivided land units.
Its process is simple and it has helped ROI Land Investments Ltd to become the market leader in the land development industry.
Here are 5 details that you might not know about ROI’s business model:
ROI follows strict land acquisition criteria
ROI Land Investments Ltd looks to acquire vacant lands in high growth areas where there is much demand for housing. ROI’s management team closely analyses the local economy and they favor areas where there is population growth and a booming industry.
For example, on the West Coast of Canada right now there are a total of 19 proposed Liquefied Natural Gas (LNG) projects. The LNG industry in British Columbia is thriving and it could be Canada’s next multimillion-dollar industry. As a result, many of the local communities such as that of Kitimat are experiencing strong economic development. The Kitimat region currently lacks the infrastructure and single-family dwellings needed to house an influx of LNG workers and their families. ROI Land Investments Ltd has acquired approximately 250,000 square feet of prime residential land development to build over 300 apartment units in the region on Kitimat. These houses will help to meet this demand while also successfully improving the communities in Northern B.C.
ROI works with a local partner to acquire land
ROI Land Investments Ltd has several important partners with whom it works. ROI creates strong relationships with real estate development and construction companies because they are the true experts in their region and they have strong incentives to help ROI Land Investments Ltd find the best land. For its Kitimat project, ROI Land Investments Ltd has partnered with Coast to Coast Holdings Inc. Coast to Coast Holdings Inc is a Calgary-based real estate development and construction company that builds multimillion dollar commercial and residential projects across Canada. They have purchased 100% of the lots.
ROI has a clear exit strategy with a local partner
ROI Land Investments Ltd’s exit strategy consists of three different alternatives: ROI enters into a joint venture with a local developer, ROI sells the land in its entirety to a real estate developer or ROI develops the land and sells the inventory units to the final customer. By following any of these three exit strategies, ROI aims to take advantage of good investment opportunities and maximize profitability. For example, ROI has recently entered into a five-year agreement with LNG Canada Development Inc. to develop housing in Kitimat, British Columbia. Of the 93 units being developed, LNG Canada will lease 35 units, which includes a mix of apartments and townhouses, to house some of its employees required to support the proposed liquefied natural gas project. This agreement has already been made pre-construction phase thus giving ROI a clear exit strategy that will help ROI achieve its investment goals.
ROI capitalizes on local expertise
ROI Land Investments Ltd always performs extensive due diligence before taking advantage of good investment opportunities for their company and their bondholders and/or shareholders. Collaborating with a local partner that has extensive local knowledge greatly enhances this process. Coinciding with rigorous analysis and valuation procedures, the expertise of a local partner can offer key insight into an investment opportunity.
ROI minimizes costs
ROI Land Investments Ltd seeks to minimize its costs where possible. By entering into joint ventures with developers, ROI can take on a supervisor role as property owner and decision maker. The local developers and partners take on the responsibility of organizing the marketing campaign, purchasing the lots and engaging the builders.
For example, ROI Land Investments Ltd has executed a Pre-Sale Agreement for project in Evans, Colorado, read more in the press release section.