Madison Pacific Properties Inc T.MPC.C

Primary Symbol: T.MPC Alternate Symbol(s): MDPCF

Madison Pacific Properties Inc. is a Canada-based real estate company, which owns, develops, and operates office, industrial, commercial, and multi-family rental properties located in British Columbia, Alberta, and Ontario. The Company also has investments in joint ventures that develop residential properties. The Company’s investment portfolio comprises around 54 properties with approximately 1.9 million rentable square feet (sq. ft) of industrial and commercial space and a 50% interest in two- multi-family rental properties with a total of 94 units. It offers a range of property management services for its portfolio of investment properties, which include tenant services and relationships, building operations, lease administration, property accounting and reporting and project management services. Its development properties include a 50% interest in the Silverdale Hills Limited Partnership which owns approximately 1,400 acres of development lands in Mission, British Columbia.

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Madison Pacific Properties Inc

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Post by undervalueon Apr 30, 2021 12:21pm

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Post# 33101641

I have my position, time to talk.

Madison, a simple cheap real estate investment.
The majority guys at GVC have a property company, Madison Pacific. Symbol mpc.c for the non voting, and mpc for the vote.
There are 59.5 million shares aprox. in total.
MPC owns a impressive list of industrial, free standing commercial, a couple small office buildings in Yaletown and minor residential.
Almost all the property is in the BC lower mainland. They own most of the yards for Taiga building (a fav of mine) they have a bit in Alberta and Ontario.
The properties are all leased up. They have a good web site that details the holdings building by building.
I see this as a mostly industrial real estate hold co. that pays a small div, and reinvests for growth without dilution.
The western investor, a GVC real estate journal published a story in early December regarding the start of a huge redevelopment in Mission BC.
Silverdale. You can find a decent web site called Silverdale hosted by a real estate agent called Nault group. It shows the area and the plans.
The Western Investor story outlined the first 38 acres being developed by Polygon and Madison. The package is 1400 acres. 700 acres each.
The story further describes zoned lands being worth a million and a half an acre in Mission.
The property was originally a play by Genstar. They bailed in 2016 and sold to Polygon. Polygon is a big, private real estate co. They have built 30,000 homes. Polygon has revenue between 800 million and a billion per year.
I found an old story describing the initial assembly dating back to 1967, 53 years ago.
I believe Madison has been hanging in as long. Their statements describe development, but I believe the original cost is so low they do not break it out. The ownership pre dates Sedar. I tried to look it up.
The lands are hillside, so some slopes will not be usable, but the size is what gets me. 700 acres of urban land is a very large land bank. Probably the largest in the lower mainland. They will have killer views and could be quite desirable. I believe they expect to build 6000 to 7000 dwellings.
It could be worth $4 or 5 a share in the current state on top of the underlining value. Small packages are asking close to 400k and acre. The Town is in favor, they are working through secondary plans.
Seems like low development risk. You can access the planning docs on the Mission web site. Built out it could be worth a half to 3 quarters of a billion. 10 bucks per share on top of the rest of the co. value.
There does not seem to be the political NIMBY issue that we see with TWC.
The previous mayor was elected as a member of the provincial government last fall. A by election took place last week. The new Mayor seems very sensible and pragmatic towards growth.
Mission house prices are thru 800k per. They have a rail connector to Vancouver, and the Highway is almost 4 lanes all the way out.
In Coquitlam they are 50% partners with Polygon on a 5 acre site that is across the road from the skytrain staion.
The site is proposed for 4 towers with 1 million to 1.4 million feet. Land is worth $150 per buildable plus.
In Mount Pleasant in Vancouver they have several redevelopment opportunities. They could get 3 times coverage with values at $300 per buildable. The land on West 2nd could get 6 times coverage.
At the Rupert skytrain station they own a 5 acre site that was zoned in 2012. The city wants density employment on the site. Building heights could be 100ft. It is another whale.
Like GVC, they have a current tax case, they have deposited half. A loss would be a set back, but not lethal, they have a large cash position, over a dollar per share.
No rush, it took 4 months to get my position. This is a potential generational play, but, I feel like the story is being understood more widely. Low sum of the parts is $8, high estimate $15.