Investment Committee

Evidence Library

Required underwriting evidence by pillar, mandatory IC exhibits, and the due diligence tracker. Nothing is scored without a documented source.

Mandatory IC exhibits

Circulated to all members no less than five business days before any Gate 3 vote. The CFO may waive an exhibit by written notice where demonstrably not applicable, with the waiver recorded in the minutes.

  • Detailed monthly development cash flow and sources-and-uses model
  • Market study, competitive set and comparable transaction schedule
  • Site plan, development program, unit mix and area schedule
  • Zoning and entitlement summary with approvals roadmap
  • Detailed development budget with benchmark or quantity surveyor support
  • Master development schedule and critical path
  • Capital stack, debt term sheet and equity waterfall
  • Base, downside and stress-case financial model
  • Break-even and LP capital impairment analysis
  • Sponsor and key team track record
  • Top ten project risks and mitigation register
  • Due diligence tracker and outstanding conditions precedent
  • Conflict-of-interest disclosure for every IC member
  • CFO certification of financial model integrity

Required evidence by pillar

Market

  • Macro fundamentals: population, household formation, employment, income and migration
  • Submarket trajectory: infrastructure, access, amenities, employment nodes and neighbourhood change
  • Supply: existing inventory, under construction, approved and proposed pipeline
  • Demand: historical absorption, sales and leasing velocity, vacancy, target customer depth
  • Competitive positioning: product, unit mix, amenities, design, pricing and location
  • Revenue validation: closed comparables, rents and sales per SF, incentives and achievable pricing

Development Feasibility

  • Highest and best use, and alternative development scenarios
  • Zoning, entitlement, FAR/FSR, height, setbacks, parking and permit requirements
  • Topography, geotechnical, environmental, servicing, utilities and access constraints
  • Program: GFA, net area, efficiency, unit mix, parking and amenities
  • Cost validation: hard costs, soft costs, municipal charges, escalation and contingency
  • Schedule validation: entitlement, design, permits, procurement, construction and stabilization

Capital & Returns

  • Total and peak capital requirements; timing of equity draws and interest reserve
  • Capital stack: senior, mezzanine, preferred equity, Fund equity and GP co-investment
  • Debt metrics: LTC, LTV, debt yield, DSCR, covenants, guarantees and recourse
  • Project returns: unlevered and levered IRR, profit on cost, development margin
  • Investor returns: LP net IRR, equity multiple, preferred return and promote economics
  • Capital efficiency: equity duration, recycling, refinance and return-of-capital timing
  • Exit assumptions: stabilized NOI and value, cap rate, refinance proceeds, selling costs

Execution Risk

  • Sponsor track record, comparable project experience and financial capacity
  • Development manager, architect, engineers, cost consultant, CM/GC, sales/leasing and operator
  • Governance, decision rights, approval thresholds, reporting and change management
  • Procurement and contracting strategy, trade packages, long-lead items and price certainty
  • Cost controls: commitments, forecast-to-complete, change orders and contingency
  • Schedule controls: critical path, milestones, float, procurement and recovery planning
  • Stakeholder management: municipality, lenders, equity partners, neighbours and counterparties

Downside Protection

  • Revenue stress: price and rent decline, incentives, slower absorption and vacancy
  • Cost stress: construction, soft costs, municipal charges and financing costs
  • Schedule stress: three-, six- and twelve-month delays
  • Capital markets stress: rates, lender spreads, reduced LTC and refinance proceeds
  • Exit stress: cap rate expansion, NOI reduction and delayed stabilization
  • Break-even analysis: price, rent, occupancy, cost and cap rate
  • Capital impairment: GP loss, loss of LP preferred return, LP principal impairment, covenant breach

Due diligence tracker

Twelve workstreams. Each requires a named responsible party and target date before Gate 3 approval.

WorkstreamStatusResponsibleTarget dateCritical issue

CDCL-specific evidence requirements

Land contribution valuation. Where a municipality contributes land, valuation is on an independent AACI appraised as-is basis, not as-entitled. Municipalities are tax-exempt under ITA s. 149(1)(c), so no Section 85 rollover is required for the municipal contribution. A s. 97(2) election (Form T2058) is recommended as a backstop for CDCL's own transfers into the LP.

Municipal dual-role disclosure. Where the municipality is both land contributor and regulatory approval authority — as with the Town of Okotoks on River's Edge and Sage Way — the dual role is disclosed in the IC package, recorded in the minutes, and disclosed to Limited Partners in offering materials.

Securities filings. Form 45-106F1 within ten days of each distribution, filed with the Alberta Securities Commission and, where a purchaser or the issuer's directing mind resides in BC, the British Columbia Securities Commission.

Mass timber insurance. Where CLT or mass timber construction is contemplated, the insurance premium is the single most consequential underwriting variable. DSCR must be tested at elevated premium multiples, not the base quote.

Regenerative screen. The diagnostic question is whether the site is ecologically and socially healthier with the building than without it — not whether it achieves a certification tier or delivers incremental efficiency gains.

Post-approval obligations

  • Monthly. Capital spent, capital committed, next non-refundable milestone, unresolved material risks, and any change to the investment thesis.
  • At entitlement milestones and before Gate 3. Refresh the underwriting in full.
  • Quarterly. CFO portfolio dashboard within 30 days of quarter-end — asset performance, DSCR, occupancy, distributions, and fund-level TVPI, DPI and RVPI.
  • On completion. Post-investment review comparing original assumptions against realized land basis, schedule, entitlement and development outcomes.
BackGate 3 · Development Return toOverview
Collegium Development Company Ltd. · Okotoks, Alberta · Strictly confidential — authorized GP and LP use only.