A portion of the Fund’s investments may be made in other real estate entities as a passive investor. The strategy is to diversify the Fund’s portfolio of assets acquired from its direct investments in real estate.

This is accomplished by making investments in other companies, entities or funds that specialize in a particular asset class, such as medical office building, or a debt/equity fund focusing on making high interest loans where the underlying principal is the collateralization of the borrower to secure the risk. These investments are made with a view towards seeking higher returns.

The Fund’s direct investments in real estate are made with a view towards enhancing the capitalized rate of return through the application of debt at rates which are lower than a specific project’s capitalized rate of return. The use of debt through lines of credit or to achieve a positive leveraging on investment returns is a fundamental part of the Fund’s strategy and is pursued through the following debt vehicles:

a. Lines of Credit
b. Direct Loans for specific real estate assets;
c. Direct Refinancing for specific real estate assets