Glossary of Terms
The purchasing and selling of properties undertaken by the Partnership.
Company funds used in the large-scale or long-term maintenance or upgrading of assets in order to uphold or increase the scope of operations (such as repairs, additions, etc).
Patterns established by the market in the construction or growth of property in a designated area over a period of time.
The possession of alternatives or options in order to limit losses in the event of a decline in the value of underlying security.
Those parties who take on the operational responsibilities, greater financial liability, and corporate accountability of the Partnership.
Used to determine a property's viability, the IRR is an interest rate that assigns a net present value of zero when applied to the expected cash flow of a prospective property.
Limited Partners invest their capital to support the Partnership from a position of limited legal and managerial obligations.
A Partnership wherein investors enter as Limited Partners (LPs) who assign the roles and liabilities of managing the portfolio to the General Partner (GP).
A seven-seat panel of nominated investors assigned with the task of representing and executing the opinions and strategies of the Partnership as a whole.
Prior to the addition of a new property to the portfolio, all prospective investments must be approved by the LPC. Further to this, all existing LPs have the Right of First Refusal on any additional units.
Psychological characteristics of a population including purchasing motivations, lifestyles, values, beliefs, interests, etc.
An exit strategy condition stipulating that Limited Partners wishing to sell their units to a third party must first offer existing Limited Partners the right to purchase the units at the agreed upon price.
A ratio comparing the expected investment return to the level of risk undertaken.
A collection of properties wherein equity is distributed both within and across asset classes in order to minimize the risk to individual investors.