Nicola Wealth has called time on its Value Add Real Estate fund and will no longer accept new capital or redemption requests. It's now effectively a closed-ended fund working to return capital to investors. The fund plans to continue to develop its projects and sell assets with "discipline and patience." The fund has a current NAV of around $755m. Since inception in 2014, the fund has generated annualized returns of 7.9%. Last year, it lost 25%.
Nicola wrote to clients that it expects "significant distributions to happen beginning in 2027" and the "significant majority of total capital" expected to be returned within the next 5 years.
You can view the fund's holdings at this link. Most projects are in GTA and the BC Lower Mainland. Any of you vultures take note: Nicola has stated that it is focused on "maximizing" value for unitholders.
Nicola had roots in insurance sales. It then morphed into a wealth manager. It had some early success convincing some of its clients to invest in select properties on a non-discretionary basis. Nicola then used this track record to springboard into a globe-straddling multi-asset manager. Nicola shows little sign that recent setbacks have tempered its ever-expanding sense of competence, as you can see from this recent headline.
