We believe the facts should be out there. Click on the comments link to view the discussion. The comments on this post are from a previous discussion thread from another site. We feel that the information should be available and the discussion should continue. Scroll down to the end of any page to post your own comment.
April 1st, 2009 at 12:00 am
Does anyone have any current information on Concrete Equities? Please respond asap.
April 1st, 2009 at 12:00 am
Yes, I do. A GRAVELY SERIOUS ISSUE has arisen to which the current share holders are now at a 99.98% risk of loosing everything they invested and a potiental that this number could increase. The new cirrcular sent out by Concrete Equities in conjunction with Wealthstreet will not only DISSOLVE my legal title on the SNC Lavalin, Castleridge and the other projects and demote me down to a mere bond holder and make me and my fellow investors 100% liable for all expenses incurred by Concrete. This was NOT the Product I purchased. I am know fevorishly working with the Alberta Securities Commission, the Calgary Police Fraud division and legal counsil to salvage my portfolio and STRONGLY recommend ALL other investors to the same. In fact my logon name should now be WANTING OUT!!!!
April 1st, 2009 at 12:00 am
Thank you I thought I was alone.
I’m an investor with Concrete Equities in Calgary.
Over 2 � years ago, I purchase a $50,000 unit in the SNC Lavalin building in downtown Calgary. Two hundred and Forty Five units were sold in the form of a Limited Partnership, to raise a total of $12,250,000. In addition, a Standard Life Mortgage of $9,750,000 at 4.97% was assumed on the property for a total Purchase Price of $22,000,000.
The projected � Cash Flow Investment Income� showed a 5.07% return in year 1.
A return of 7.03% year 2 and 3, and a 7.38% return year 4 and 5.
After 5 years the proposed plan was to refinance the property based on new tenancy leases, and then to do an equity take out of $37,849.07 per $50,000 unit initially invested.
This plan was strongly promoted by Dave Jones of Wealth Street.
For the first 2 years things looked really good, and quarterly payments were made on schedule, but for some reason, no financials were ever provided on the building.
In late 2008 it was brought to the attention of the Limited Partnership that the mortgage term had ended, and no new mortgage had been arranged. It also came to light that as of July 2008, two floors out of the ten floors in the building were vacant!
As of March 31 2009, the property still appears to be without a mortgage. Details are hazy. Two floors of the building still remain vacant, and Concrete Equities are still not providing the investors in the Limited Partnership Financial statements on the operations of the SNC Lavalin building.
It would appear to some that Concrete Equities is not even trying to secure a mortgage, nor rent out the vacant floors! What Concrete Equities is proposing is an entire restructuring of their business model!
On March 12, 2009, a Notice of Special Meeting, Information Circular, Proxy and Extraordinary Resolution was sent out to all 245 investors in the SNC Lavalin building, as well as to the investors in the other Concrete Equities Ventures, namely; �Millrise Plaza�, �Deer Valley Station�, �Castleridge Plaza�, �Concrete Equities Place�, �MEG Place�.
This package of documents propose the immediate selling of all properties to a third party who will then set up a single fund, the Strategic LP. In exchange, unit owners will receive �non-voting� Class B shares of the fund and a �unsecured subordinated debenture.
Also lumped into the whole scenario are yet to be Syndicated Concrete Equities Properties which hold considerable liabilities in the way of mortgages;
� Airways Business Park� mortgage of $4,750,000.
�Glenmore Commerce Court� mortgage of $6,250,000
�Symcor-Otis buildings� first mortgage of $9,500,000 at 9.25% and
a second mortgage of $8,213,000 at 40%
As well as another Concrete Limited Partnership that owes a first mortgage at $6,225,000 at 12.5% and a second collateral mortgage of $1,000,000 at 40%.
Yes, you read that right, 40%.
If individuals in the current Limited partnerships of these buildings agree to this scenario they will be giving up any ownership interest in the properties they currently own, and instead they will be assuming huge liabilities!
Unfortunately, Concrete Equities control the owner contact lists, and therefore also control the flow of all information, or lack of information, to the unit owners.
Concrete Equities and Concrete Equities President, Varun Aurora, Vice President, Vincenzo De Palma, as well as Dave Jones of Wealth Street, Director of Concrete Equities, are all working very hard to have this vote pushed thru prior to investors actually receiving full financial packages. You have to ask yourself why?
April 1st, 2009 at 12:00 am
There is a group of investors all sharing the same “what do I do” “how can I stop this thing” questions meeting on Tuesday, April 7th, 7pm at 10623 West Valley Rd SW (Victory Church on the Highway 1 West). 7pm. I hope to see you at the meeting on Wednesday.
In case you don’t have the contact info for the securities commission it’s:
Alberta Securities Commission: Contact Ron Rodger, 403-355-4476
300 – 5th Avenue SW (stockexchange building).
Sending in a “AGAINST” answer on the proxy is also Key to stopping these guys and I know for sure that the securities commission is investigating. If all goes wrong we can maybe get our initial investment dollars back.
Saying Yes to the Proxy means: that you are no longer a title holder just a member, you give up your say on what is purchased and you have all the liabilities. Did you know they are planning to develop land in Odgen that is contimnated (old chemical referenery) and it will be the investors that will HAVE to PAY to clean up the land…Not Concrete… Not a good Deal.
and I don’t know how in the world someone could sign a deal that would have a 40% interest rate on second $8,213,000!!!! that’s just crazy, if I may be so bold.
Hindsite is defiately 20/20 and I wouldn’t give a dime to these crooks….
April 1st, 2009 at 12:00 am
I wonder who holds that second mortgage? Someone related to the directors maybe? But then these kind of people aren’t likely to put any of their own money into these ventures, even at 40%, when they can gamble with yours instead.
April 1st, 2009 at 12:00 am
You could be right about the “family” connection, as the new circular doesn’t state who the mortgage lender is. And this mortgage is on the new Concrete Equities office building too! Nice, they get a gorgeous office and I loose my home… the only Power I have right now is voting against the proxy and have Hope the securities commission can get my money back – like they did for the another small group of Concrete’s investors back in Oct of 08.
Are you an LP with concrete?
April 1st, 2009 at 12:00 am
No, just a cynic. The name(s) alone would have scared me off, let alone their advertising practices. If it looks like snake oil, smells like snake oil, and tastes like snake oil, chances are it is snake oil.
April 1st, 2009 at 12:00 am
Are you also under the impression that if I don’t vote, it is an automatic yes vote. When reading the introducing letter I understood that a vote was needed to allow this proposal to happen, but when reading the bottom line of the green sheet I changed my mind. Also, could you explain their 40% mortgage situation more? The other thing is the 6% interest carrot. Are we signing away our property and then getting paid for it in the form of a yearly 6%?
April 1st, 2009 at 12:00 am
I read with great interest your comments. I have $25k in Concrete Equities Place and have not received any info (proxy) to date so I am puzzled about any reorg taking place. Is this for real?
April 1st, 2009 at 12:00 am
Have you filed a complaint with the Alberta Securities Commission?