MoneyLogix believes that the current economic and market conditions have created an environment for opportunistically investing in urban real estate markets. Notwithstanding a significant decline in market activity and a material reduction in credit availability, MoneyLogix is of the view that North American real estate markets continue to demonstrate strong long-term industry fundamentals including projected population growth in urban centres, low borrowing rates and government policies in support of intensified urban development. Based on its opinion of these underlying fundamentals, MoneyLogix expects the demand for urban commercial and residential properties to recover in the next few years and remain relatively strong over the long term.

Based on this view, the Company will initially look to invest in a portfolio of opportunities primarily in the North American urban real estate markets, through the strategic acquisition of properties that provide the potential for increases in income, value and/or the prospect of significant capital gains from site development or re-development.

MoneyLogix will seek to initially invest 90% of its funds in physical properties and 10% in real estate related investments (i.e. mortgages, mezzanine financing). Of the allocation to physical properties, approximately 45% of the funds available (plus debt financing) in predominantly commercial and residential mixed-use re-development projects that generally offer positive cash flow and 40% to purchase underdeveloped and vacant land for investment and development purposes. In evaluating investment opportunities, MoneyLogix applies a minimum annualized investment return or hurdle rate of 30%.

In addition to our investment activities, MoneyLogix intends to use our depth of expertise to provide financing and restructuring assistance to land owners, developers, builders and operators. It is expected that during the formative stages of the company this will generate the majority of our profits but will become a less significant aspect of the company as our property and mortgage portfolios are developed.