Return On Innovation Advisors Ltd. Announces Proposed Change of Manager and Proposed Reorganization of ROI Canadian High Income Mortgage Fund, ROI Canadian Mortgage Income Fund, ROI Canadian Real Estate Fund and ROI Institutional Private Placement Fund

TORONTO, April 2, 2014 /CNW/ - Return On Innovation Advisors Ltd. ("ROI Capital") announced today that it has entered into an agreement with a subsidiary of DREAM Unlimited Corp. (TSX:DRM) ("DREAM") whereby DREAM will acquire the rights to manage ROI Canadian High Income Mortgage Fund (TSX: RIH.UN), ROI Canadian Mortgage Income Fund (TSX: RIL.UN), ROI Canadian Real Estate Fund (TSX: RIR.UN) and privately held ROI Institutional Private Placement Fund (collectively, the "ROI Funds"). 

In connection with the change of manager, it is proposed that the ROI Funds will complete a reorganization involving, among other things, the transfer of the assets of each ROI Fund to a newly-formed, open-ended investment trust called DREAM Alternatives Fund ("DREAM Alternatives") in exchange for units of DREAM Alternatives. Unitholders of the ROI Funds would then receive units of DREAM Alternatives on redemption of their ROI Fund units under the reorganization.

DREAM Alternatives will be managed by a subsidiary of DREAM and will provide unitholders with exposure to real estate, real estate lending and infrastructure, including renewable power, and accordingly leverage DREAM's asset management platform, track record and expertise in these areas.

"Given DREAM's roster of 178 real-estate professionals and management of over $13.8 billion of real-estate assets, we believe the proposed transaction between the ROI Funds and DREAM will offer great synergies to deliver on unitholder expectations and value." said Wilfred Vos, President of ROI Capital.

The closing of the transaction and the completion of the reorganization is subject to customary closing conditions including obtaining requisite unitholder, stock exchange and regulatory approvals in addition to the Independent Review Committee recommendation for the ROI Funds. It is anticipated that an information circular will be prepared for mid May 2014, with the unitholder vote expected to occur in June 2014. Subject to the appropriate approvals, the transaction is expected to close in July 2014.

Further details of the transactions will be set forth in an information circular that will be mailed to applicable ROI Fund unitholders.

About the ROI Funds

The investment objective of ROI Canadian High Income Mortgage Fund is to provide unitholders with attractive risk adjusted, monthly, tax advantaged cash distributions, a high current yield, some long-term capital appreciation and preservation of capital by investing primarily directly or indirectly in, or by obtaining economic exposure through a forward agreement to, an actively managed diversified portfolio of commercial mortgages, loans secured by, or that provide a participating interest in, real property or ownership interests in real property. The net asset value per unit of ROI Canadian High Income Mortgage Fund as of April 1, 2014 is $9.3841.

The investment objective of ROI Canadian Mortgage Income Fund is to provide unitholders with attractive risk adjusted, monthly, tax advantaged cash distributions, a nominal after-tax current yield, long-term capital appreciation and preservation of capital by investing primarily, directly or indirectly in, or by obtaining economic exposure through a forward agreement to, an actively managed diversified portfolio of commercial mortgages, loans secured by, or that provide a participating interest in, real property or ownership interests in real property. The net asset value per unit of ROI Canadian Mortgage Income Fund as of April 1, 2014 is $9.5539.

The investment objective of ROI Canadian Real Estate Fund is to provide unitholders with attractive risk adjusted, monthly, tax advantaged cash distributions, a nominal current yield, some long-term capital appreciation and preservation of capital by investing primarily, directly or indirectly in, or by obtaining economic exposure through a forward agreement to, an actively managed diversified portfolio of commercial mortgages, loans secured by, or that provide a participating interest in, real property or ownership interests in real property. The net asset value per unit of ROI Canadian Real Estate Fund as of April 1, 2014 is $9.3709.

The investment objective of ROI Institutional Private Placement Fund is to provide unitholders with attractive risk adjusted, monthly cash distributions, a nominal current yield, some nominal long-term capital appreciation and preservation of capital by investing primarily, directly or indirectly, or by obtaining economic exposure through one or more forward agreements to, an actively managed diversified portfolio of commercial mortgages, loans secured by, or that provide a participating interest in, real property or ownership interests in real property. The net asset value per unit of ROI Institutional Private Placement Fund Series A as of April 1, 2014 is $91.8002.

About ROI Capital

Established in 2002, ROI Capital is a privately held Canadian investment management firm that specializes in commercial mortgages, loans and private real estate investments. With a deep understanding of the fundamentals of the commercial real estate market, ROI Capital strives for capital preservation while seeking to deliver sustainable income and long-term returns for investors. This is achieved by primarily focusing on income-producing properties in large urban markets. ROI Capital has created a bridge between investors seeking the income potential from alternative investments and borrowers in Canada's flourishing commercial real estate sector seeking non-bank financing. In just over a decade, ROI Capital has financed over $1.7 billion (as of December 31, 2013) across approximately 200 private commercial real estate investments and has continuously delivered value and income to investors. Website: www.roicapital.ca

About DREAM

DREAM is an innovative real estate manager and developer primarily focused on the commercial and residential sectors in Canada and Germany and renewable power in Canada.  From its creation, DREAM has successfully identified and executed on opportunities for the benefit of the business, shareholders and clients. 

DREAM provides asset management for over $13.4 billion of assets. DREAM is the asset manager for three publicly listed REIT funds in Canada including: Dundee REIT, Canada's largest office REIT, Dundee International, Canada's largest REIT that invests only outside of Canada and Dundee Industrial REIT, one of Canada's largest dedicated industrial REITs. 

DREAM is also the co-manager of a $345 million infrastructure fund with a focus on wind and solar Canadian renewable power projects.  The total value of these projects is about $1.3 billion including debt.

Its asset management team consists of 178 real estate professionals with backgrounds in property management, architecture, engineering, construction, finance, accounting, sales and marketing and law.  The team brings experience from virtually all the major real estate organizations in Canada and has expertise in capital markets, structured finance, real estate investments and management across a broad spectrum of property types in diverse geographic markets.  It carries out its own research and analysis, financial modeling, due diligence and financial planning.  DREAM has an established track record for being innovative and for its ability to source, structure and execute on compelling investment opportunities. DREAM has completed over $17 billion of commercial real estate transactions over the last 20 years. Website: www.dream.ca

Certain statements included in this news release constitute forward-looking statements. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. ROI Capital undertakes no obligation to update publicly or otherwise revise any forward looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. Investment funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There is no guarantee that an investment in any ROI Fund will earn any positive return in the short or long term nor is there any guarantee that the ROI Fund's investment objectives will be achieved or that the net asset value per unit will appreciate or be preserved.

SOURCE: ROI Capital

Wilfred Vos, Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA, President and Founding Partner, 416 361-6162