Port Picton Homes (PPH) presents a pioneering, regulatory-compliant real estate tokenization offering for the Cold Creek Back-to-Back Townhome Community located on Laney Street in Picton, Prince Edward County, Ontario. The project comprises 86 purpose-built rental townhomes configured across 11 discrete blocks (ten 8-unit blocks and one 6-unit block).
Under the Ontario Securities Commission (OSC) Start-Up Crowdfunding Exemption (NI 45-110), PPH is offering fractionalized digital Class A Limited Partnership units at $100 CAD per token. Each 8-unit block requires exactly $800,000 CAD of equity ($100,000 CAD down per unit). The balance of construction is funded via a 40-year traditional facility. Upon completion and stabilized lease-up, the block undergoes a CMHC MLI Select 95% LTV takeout refinancing, returning 100% of investors' capital tax-free while leaving token holders with permanent equity yielding quarterly rental dividends and substantial terminal appreciation.
The table below outlines the audited proforma underwriting for a standard 8-unit back-to-back townhome block (4 × Two-Bedroom units @ 1,551 SF + 4 × Three-Bedroom units @ 1,623 SF).
| Financial Metric | Underwriting Basis | Per Townhome Unit | 8-Unit Block Total |
|---|---|---|---|
| Development & Construction Cost Base | Land + Civil + Vertical Build Net of HST | $424,900 CAD | $3,399,200 CAD |
| Required Equity Down (Token Raise) | Class A LP Units @ $100/token | $100,000 CAD | $800,000 CAD |
| Construction Mortgage Financing | 40-Year Traditional Construction Draw | $324,900 CAD | $2,599,200 CAD |
| Effective Gross Revenue (EGR) | Average Rent $2,250/mo (net 7.5% vacancy) | $26,450 / yr | $211,600 / yr |
| Operating Expenses (Opex) | Taxes, Insurance, Mgmt, Maintenance Reserves | ($5,169) / yr | ($41,350) / yr |
| Stabilized Net Operating Income (NOI) | Commercial Valuation Basis (@ 4.8% Cap Rate) | $21,281 / yr | $170,250 / yr |
| Projected Stabilized Market Value | Certified AACI Commercial Appraisal | $532,500 CAD | $4,260,000 CAD |
| CMHC MLI Select Takeout Mortgage (95% LTV) | 50-Yr Amortization @ 4.10% Insured Rate | $404,700 CAD | $3,237,600 CAD |
| Retire Interim Construction Debt | Principal Balance at Stabilization | ($324,900) CAD | ($2,599,200) CAD |
| Net Cash Returned to Token Holders (Refi Event) | 100% Principal Return + Accrued 8% Pref Return | $114,000 CAD | $912,000 CAD |
A unique structural strength of the Cold Creek back-to-back townhomes is the Dual-Track Exit Architecture. Because each unit is structurally and architecturally an independent townhome, PPH possesses the legal entitlement to execute a Part-Lot Control Exemption By-law with Prince Edward County.
Following the CMHC takeout, investors hold their tokens with $0.00 net capital remaining in the deal. Quarterly rental cashflow after debt service is split 50% to Token Holders and 50% to PPH. Concurrently, the CMHC mortgage pays down ~$38,000 CAD of principal per block annually, growing the LP's underlying equity net worth.
At an optimal market window, PPH can create separate freehold / parcel of tied land (POTL) titles for each of the 8 townhomes and sell them individually on MLS to retail home buyers at the projected retail value of $520,000 to $545,000 CAD per unit.
| Part-Lot Control Exit Economics (8-Unit Block) | Per Unit | 8-Unit Block Total | Per Token ($100 basis) |
|---|---|---|---|
| Gross Retail Disposition Revenue (MLS Average) | $532,500 CAD | $4,260,000 CAD | $532.50 |
| Disposition Costs (Brokerage, Legal, Closing @ 4.0%) | ($21,300) CAD | ($170,400) CAD | ($21.30) |
| Payoff Remaining CMHC Mortgage (after 5 yrs amort) | ($372,500) CAD | ($2,980,000) CAD | ($372.50) |
| Net Residual Equity Windfall | $138,700 CAD | $1,109,600 CAD | $138.70 |
| PPH Sponsor Carried Interest Share (50%) | ($69,350) CAD | ($554,800) CAD | ($69.35) |
| Net Exit Cash Distributed to Token Holders (50%) | $69,350 CAD | $554,800 CAD | +$69.35 / token |
• Exemption: NI 45-110 (Start-Up Crowdfunding) allows up to $1.5M CAD per issuer every 12 months without a prospectus.
• Issuer SPV: Each block is owned by a distinct LP (`Cold Creek Block [X] LP`), creating isolated legal liability.
• Title: Nominee Corp holds bare legal title; LP holds 100% beneficial ownership.
• Statutory Hold: 4-month seasoning lockup under NI 45-102.
• Standard: ERC-3643 (T-REX) deployed on Polygon Layer-2.
• On-Chain Identity: Automated smart contract transfer checks ensure tokens can only be transferred to KYC/AML-verified addresses.
• Dorsal P2P Portal: Following the 4-month lockup, token holders can buy/sell tokens on an internal whitelisted bulletin board.
• Embedded Wallets: Web2 email onboarding (Privy/Magic) allows investors to participate without crypto wallet friction.
| Rollout Tranche | Blocks Included | Units | Total Equity Raise | Capital Sourcing | Refi & Roll Timeline |
|---|---|---|---|---|---|
| Tranche 1 (Pilot) | Block 1 & Block 2 | 16 Units | $1,600,000 CAD | Retail Crowdfunding (NI 45-110) + Accredited | CMHC Refi at Month 18–21 |
| Tranche 2 | Block 3 & Block 4 | 16 Units | $1,600,000 CAD | Tranche 1 Capital Roll + Portal New Users | CMHC Refi at Month 24–27 |
| Tranche 3 | Block 5 & Block 6 | 16 Units | $1,600,000 CAD | Capital Roll + Syndicate LPs | CMHC Refi at Month 30–33 |
| Tranche 4 | Block 7 & Block 8 | 16 Units | $1,600,000 CAD | Capital Roll + Syndicate LPs | CMHC Refi at Month 36–39 |
| Tranche 5 (Final) | Blocks 9, 10 & 11 | 22 Units | $2,200,000 CAD | Capital Roll + Residual Portfolio Syndicate | CMHC Refi at Month 42–45 |
| Full Community | All 11 Blocks | 86 Units | $8,600,000 CAD | Recycled Capital across 11 Blocks | Complete 86-Unit Stabilized Portfolio |