About
Leveraging our industry expertise we strive to maximize total return for our unit holders and generate stable and growing cash flow.
Our History
Commercial real estate investments are complex. The need for large capital outlays, mortgage financing, and an understanding of the intricacies of asset and property management present a number of barriers to individual investors. Taken together, these impediments ensure that only specialist developers and large financial organizations benefit from the bulk of profits, capital gains, and tax advantages available in this highly lucrative field.
The Millennium III Group of Companies was founded 43 years ago to overcome these barriers. By facilitating collective ownership of commercial real estate through a limited partnership structure, we offer investors the opportunity to profit through partnership.
Millennium III acquires and develops commercial properties with minimum individual capital outlay and maximum tax advantages. Investors, as part owners of a property, participate fully in the profit from operations while maintaining limited liability. The directors of Millennium III personally purchase partnership units in each offering, ensuring our commitment to the project’s long-term success.
The Millennium III Group is one of the largest commercial landlords in Saskatoon, Saskatchewan, with a proven track record of investment in 93 projects across Western Canada. Along with our more than 1,700 investors, we currently own and manage:
• Over $450 million in investment property throughout Saskatchewan and Alberta
• 71 commercial properties
• 1.9 million square feet of leasable space with more than 600 industrial, retail, and office tenants
Our limited partners have benefited from tax advantages, capital gains, and long-term income from their real estate investments. Many partners have multiple investments in a number of our projects, returning year after year to participate in our new syndications.
We have been helping investors profit through partnership for 43 years. We welcome you to join us.
John A.W. Kearley
President, The Millennium III Group of Companies
Investing in
Western Canada
since 1981
Investing in Western Canada offers attractive opportunities due to its abundant natural resources, including vast reserves of oil, gas, minerals, and agricultural products. The region’s stable political environment, well-developed infrastructure, and strategic location for trade with North America and Asia further enhance its investment appeal.
Western Canada is poised for unprecedented economic growth. Millennium III continues to invest throughout the region with the intention that our partners will share in those opportunities.
Executive Team
Meet our Team
Frequently Asked Questions
One of the benefits of participation in a limited partnership is the favourable tax treatment. In the first years of the project, the costs associated with syndication, and refurbishment of the property, are transferred to investors as a 100% tax write-off. Most of this write-off applies in the first year of the partnership, with lesser write-offs in subsequent years. Capital Cost Allowance (CCA) may also be written off as the project progresses, to reduce or eliminate taxable income of the project. Preferential tax treatment of capital gains, at only 50% income inclusion, also applies to the net proceeds if a property is sold. **
No. Millennium III’s real estate limited partnerships are designed to produce long-term income, and may not be readily converted to cash.
Millennium III partnerships using our current syndication model have historically delivered excellent annual returns* over the various stages of the investment. These returns are a combination of tax write-offs, appreciation in the value of the property, increase in equity through debt reduction, capital distributions from the partnership.
Millennium III’s investments are private, and are not publicly traded. Most of our sales are done through select investment dealers so we do not advertise widely.
Advanced Questions
Investment units can be transferred to a spouse to facilitate income splitting. Many investors purchase the investment to provide tax relief for a high earning spouse for the first four years, and then when the major write-offs are exhausted, transfer the unit to the lower income spouse, who then takes the partnership income at a lower tax rate.
Transferring investments to children or grandchildren will incur liability for capital gains tax on 50% of the fair market value (FMV) of the investment less the adjusted cost base (ACB). To minimize tax exposure, this is best done once the tax write-offs have been taken and the FMV and the ACB are nearest in value.
A good mechanism for passing on investment units to family members is a trust. The units are transferred into the trust when the capital gains tax liability is lowest. The investor can continue to benefit from the income from the investment by taking income from the trust, or pass the income onto other beneficiaries as desired. As long as the investment is held in trust there is no further tax to pay except on income. Units will flow out of trust to capital beneficiaries without further capital gains tax consequences. **
A limited partnership is a business entity that combines the benefits of partnerships and corporations. There is a general partner, frequently a limited company, that is responsible for the operations and management of the business. Limited partners are similar to corporate shareholders. They share in the profits generated by the business, but their liability is limited to the amount of their investment only.
A T5013 income tax slip is sent to investors in March for the previous tax year. In the early years of the investment, there will be losses reported that can be deducted from your other sources of income. In later years, you will have income to declare.
The best reason to invest with us is the long-term advantage. Millennium III is Western Canada’s most experienced sponsor of commercial real estate partnerships. At Millennium III, we are proud of our reputation built on our ability to deliver excellent returns to our limited partners over our many years of operation.
Most people are familiar with the ups and downs of residential real estate. Commercial real estate is a more stable market. Values depend primarily on income from leases that are typically three, five or ten years in length, so commercial property retains its value through short-term economic downturns and fluctuations in the stock markets.
Participating in a limited partnership allows a group of individuals to invest collectively, enabling them to raise sufficient capital to enjoy ownership of commercial properties not normally affordable by an individual investor.
Many investors make use of financing to purchase limited partnership units, as this strategy provides additional tax relief in that the interest on the loan is tax deductible. We have arranged a loan program, through select financial institutions, whereby the investment may be purchased with a $5,500 down payment and a $19,200 loan in the investor’s name, subject to approval, with an arm’s length financial institution.
Millennium III partnerships have an indefinite term. Our strategy is to produce a regular income stream from the property, ideal for retirement planning or for passing on wealth to children or grandchildren. The possibility of disposition of the property exists, in which case the partners will receive their share of the net proceeds of the sale.
Millennium III provides annual financial reporting. We also provide regular progress reports that include details of the leasing and operations of the property. In addition, investors’ annual meetings are held to discuss the previous year’s performance.
The general partner is the holder of the land title. As a limited partner, you receive a limited partnership unit. Your security is the inherent value of the real estate.
* Past performance is not necessarily indicative of future results.
** Tax circumstances differ for each individual and tax rules are subject to change. The general tax commentary above may not apply in every case. Always seek advice from a professional tax advisor when considering investments for tax planning.