Tempus Capital to acquire $1M in Oak Street shares

Executive Summary

• Tempus Capital Inc. has signed an agreement to invest up to $1 million in Oak Street Partners Ltd., a private Canadian affordable housing owner-operator.
• The investment is conditional upon satisfactory due diligence review and involves strategic board appointments for both companies.
• Oak Street specializes in government-subsidized affordable housing in the Midwest US, targeting a 15% annual cash return, while Tempus aims to diversify its portfolio and gain exposure to this asset class.

Key Details

• Investment Amount: Up to $1 million in Oak Street common shares.
• Conditionality: Investment is conditional upon satisfactory due diligence review.
• Target Company: Oak Street Partners Ltd., headquartered in Toronto, operating in the Midwest United States (specifically Cleveland and Akron, Ohio).
• Target Operations: Owns and manages over 150 housing units in single-family and multifamily asset classes; specializes in renting to tenants through government-subsidized programs.
• Target Financials: Targets a 15% cash return to investors annually.
• Governance Changes:
  • A member of Oak Street's management team will join the board of directors of Tempus Capital.
  • Tempus will appoint one member to the advisory board of Oak Street.
• Strategic Rationale (Tempus): Market diversification and risk-mitigated yield approach; access to high cash-flow-producing residential real estate.
• Strategic Rationale (Oak Street): Capital to expand portfolio in northeast Ohio; providing investors with exposure to Oak Street through a liquid, publicly traded company (Tempus) and allowing investment via registered funds.

Notable Quotes

• Russell Tanz, Tempus President and CEO: "The investment makes a lot of sense for our shareholders from both a market diversification standpoint and for the risk-mitigated yield approach that Oak Street's investment model focuses on... We look forward to completing the due diligence period and making this accretive investment."
• Parker Christie, Oak Street Partners CEO: "Having Tempus invest into Oak Street marks a significant milestone for our company... offering investors exposure to Oak Street through a liquid, publicly traded company and the ability to invest registered funds into Tempus is a tremendous benefit."