\"Land is the basis of all wealth\"
Adam Smith
Banking Land..... Building a Future
Land Banking
•œ Security - Capital Preservation
•œ Fixed Asset - \"Aaa\" Rated
•œ 15%-20% per Annum Targeted Returns*
•œ Absolute Return Strategy
•œ Portfolio Diversification
•œ Medium Term Investment
•œ Profit in Rising and Falling Markets
•œ Low Minimum Investment
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Investment Objectives
The primary investment objective is to produce absolute returns of 15-20% per annum - regardless of market
conditions. The Land Banking investment also places a strong emphasis on capital protection and provides a
fixed asset with an \"Aaa\" rating from Moody's.
Key Benefits
15-20% per Annum Targeted Returns Profit in Rising and Falling Markets
Faced with lower returns and higher volatility, investors are
TSI Land Banking investments seek to produce tax-efficient
increasingly seeking sources of return that are uncorrelated
annual returns of 15-20 percent net of all fees. Forward-
with broad market movements. One way to achieve this
looking simulations have produced returns well in excess of
objective is through an \"Absolute Return\" strategy. Strategies
30%.
such as land banking generate superior performance
regardless of whether markets rise or fall.
4-6 Years Investment Term
Land Banking investments have shown greater returns over Portfolio Diversification
the medium term than either traditional or alternative
Adding real estate to a traditional portfolio improves overall
investments. Average investment horizon (the length of the investment diversification away from traditional stocks and
investment) is approximately 4-6 years. bonds. By utilising land banking as a diversification tool,
investors can greatly reduce risk while enhancing overall
Security of a Fixed Asset \"Aaa\" Rated(highest credit rating available) portfolio returns.
Investors receive direct beneficial ownership of the Land
Modern portfolio theory, developed by the Nobel Prize economist Dr.
Banking asset which is fully registered with a sovereign Harry M. Markowitz, in 1952, demonstrates how portfolio diversification
provincial government body. The Government of Ontario, works to reduce risk for investors.
Canada holds the highest possible credit rating available with
Hedge Against Inflation
an \"Aaa\" rating from Moody's Investors Service.
Historically, land has been viewed as the best hedge
Moody's Investors Service is among the world's most respected, widely utilised
against inflation and deflation. Studies and research have
sources for credit ratings, research and risk analysis. The system of rating securities
demonstrated that real estate provides significantly strong
was originated by John Moody in 1909.
hedges against expected and unexpected inflation.
Low Minimum Investment
Access to an Exclusive Asset Class
TSI offers Land Banking investment opportunities to qualified
TSI International provides investors with an affordable way
investors with the minimum investment amount as low as
to gain access to an exclusive, highly profitable, alternative
C$50,000 and no upper limit on the amount you may invest.
asset class.
No Initial Charges - No Annual Management Fees
There are no initial charges and no annual fees when
investing in TSI Land Banking products.
Investment Manager
Alternative Real Estate Investment Products
TSI International Group is a member of the TSI Group of
The firm focuses on real estate investment products that
Companies headquartered in Toronto, Canada. TSI Group
provide absolute returns, regardless of market conditions.
is a diversified group of companies engaged in a variety of
The firm offers structured debt and equity products for
real estate businesses.
qualified institutional and individual investors. All products
Land Banking Investment
•œ
offer investors the chance to benefit from TSI's core
Real Estate Development
•œ
specialty in Land Banking.
General Contracting/Construction
•œ
TSI International also works closely with top legal and
Property Management
•œ
financial teams to create profitable, tax-efficient,
Land Banking Pioneers inheritance-friendly structured products.
The principals of the TSI Group of companies are pioneers Disciplined Investment Process
in the real estate investment and land banking fields. TSI
Investment Manager
International co-founders, Daniel Lane and Stephen
Huggins and a team of dedicated, experienced staff are at Land banking investment objectives, strategy and performance
the forefront of a growing trend to bring the high returns and
superior benefits of land banking to qualified investors.
TSI Services/Clients
Land Land
The TSI Group provides a range of investment Land
Land
Value Sale
management services for institutional investors, private Syndication
Acquisition
Creation -Exit-
clients, independent wealth managers, and private banks.
TSI International has distribution partners throughout North
America, Europe, and Asia- Pacific.
Disciplined due diligence, legal,
accounting & control, engineering, and concept planning.
Risk Management

The Story of Real Estate and Land Banking
How famous land bankers have become some of the wealthiest people in the world
role in a mixed-asset portfolio was fond of reminding
Many well known people like Donald Trump, Li-Ka
investors that the \"Real\" in real estate does not come
Shing, the Mori family and the Rockefellers have
just from its tangible nature. \"Real\" is derived from
made solid and secure profits from land banking.
the French and Spanish word for \"royal\" (as found in
Historically, land has always played a pivotal role in
Montreal). It's no coincidence that throughout history
the ancient and the modern world as a source of
royalty were the wealthiest because they were also
wealth, power and economic strength. Early
the original owners of land. The kings, queens,
economic systems from feudalism to mercantilism
emperors, monarchs and feudal lords knew the
were all based, in part, on the income derived from
economic benefits of owning property.
agrarian and urban real estate holdings. Meyer
Melnikoff, one of the early proponents of real estate's
What is Land Banking
Land Banking is:
1 3
The strategic acquisition of land in advance of The process of purchasing land and holding it for
expanding urban development; future use;
2 4
The practice of buying and holding pre-development Purchase of land at today's prices and development
land in the path of growth; of the land, as appropriate, in the future.
Land Banking is a Proven Concept
Clearly, it is preferable and far more profitable to buy
Pre-planning purchase of agricultural, green belt and
land prior to planning applications being submitted.
pre-development investment-grade land is nothing
Having gained planning permission the land may
new - large developers and the super-rich have been
then increase in value 200% to 500%. There are no
doing it for decades. They \"stockpile\" land into their
complicated concepts that investors need to
own land banks for future development use. What is
understand with land. Simply, there is an ever-
new, however, is that we at TSI International Group are
increasing demand for expansion with a limited
pleased to offer this unique opportunity to qualified
supply of land for purchase.
investors. Every developer knows that each town and
city must grow outward, absorbing undeveloped land.
Land Banking Advantages are:
Land is real. It is an inexpensive way to invest in property.
•@ •@
Unlike shares, land is tangible - it can be visited, Land increases in value in two ways:
seen and walked on. By property values rising due to demand
•›
•@
outstripping supply.
There is a limited supply of land. •@
•@
By re-zoning the land (gaining permission)
•›
It is easy to understand and is viewed as a solid
to have houses or business parks built on
investment.
the land.
•@
Land is not open to accounting scandals and when
Historically, land banking has proven to be a
property prices are going up (or down), the reason
secure, profitable investment.
for this movement is clear.

Land Banking Process
There are four basic steps in our investment strategy:
Step 1 Step 2 Step 3 Step 4
Land
Land Land Value Land Sale
Syndication
Acquisition Creation -Exit-
Rigorous quantitative and Concept planning takes over as Upon approval of \"Draft Plan\"
TSI syndicates the land by
qualitative research of the primary focus. and land use re-designation,
dividing the property into
investment-grade land. the land is either sold to local
undivided interests called units.
developers or in smaller
parcels to local builders.
Environmental, water, sewage,
Investors acquire units and
Investment manager targets 51% of the investors must
infrastructure, and other
become equity partners.
land located in high population agree to the sale offer. Once
considerations form the basis of
growth areas in and around the sold, the profits are divided
the \"Draft Plan\".
GTA and close to existing or equally amongst the unit
potential infrastructure projects. holders on a per unit basis.
Negotiation with government
Invest in land that is attractive TSI Intl. retains 10-15% Maximise the wealth of the
and developers for future
to developers for future ownership in each project. investors.
development.
development.
How Land Values Increase
As urban areas grow in terms of population, income and
Land Value
wealth, the value of land in surrounding areas increases.
(C$)
Our value is our unique understanding of knowing today Secondary
Market
where people are going to live and work tomorrow. The Development (2)
Completed
two key factors that drive land values upwards are: Construction
of Buildings
Development (1)
1. Population Growth Infrastructure
Draft Plan & Services
Approval &
2. Economic Growth - Stable and Vibrant Economy Registration
Draft Plan
Population Growth can be defined as the rate at which the Application &
Submission
population is increasing or decreasing in a given year. It
takes into consideration all the components of population Pre-
Development
growth- mainly births, deaths and migration. Land
Economic Growth can be defined as an increase in an
economy's ability to produce goods and services which
brings about a rise in standards of living. Raw Land
Investment Term 4 - 6 years
While population growth and economic growth help drive
average land values upwards, TSI creates added value for
Time
investors by following a comprehensive development
process. This process results in optimising the raw land's As explained in the graph above, as the process for
development potential. This involves taking the raw land advancing the land toward development progresses and it
through a series of re-zoning and planning stages. ultimately gets re-zoned, the value of the land increases
Ultimately, it results in land use re-designation which creates substantially.
more demand for the land, thereby increasing its value.
\"It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint,
and I just love real estate.\" Donald Trump

Why Invest in Real Estate
Real estate is an attractive asset class that offers high current and total returns, and provides substantial
diversification in a multi-asset portfolio. For these reasons, recent asset management research advocates higher
real estate allocations for most investors.
Primary Reasons To Consider Real Estate
1 3
To achieve absolute returns well above the To hedge against unexpected inflation or
risk-free rate; deflation;
2 4
To reduce the overall risk of the portfolio by To comprise a part of a portfolio that is a
combining asset classes that respond differently reasonable reflection of the overall investment
to expected and unexpected events; universe.
There are many benefits and diverse investment opportunities that a professional approach to real estate
investing can offer. This presents a solid case for increased investor focus on this important asset class.
\"Real estate ownership is listed as the prime source of wealth more often than any
other occupation.\" Forbes
Performance Comparisions
Risk/Return Analysis: 10-Year Average Simulated Return on Investment (CAD$100,000)
275
24 20%
250 248,832
20 15%
TSI Land Banking 225
16
207,360
201,135
200
Equity
12
175 172,800 174,900
Government Bonds
8
152,087
Public Real Estate 150 144,000
4 132,250
125
Cash 120,000
115,000
0 100
0 5 10 15 20 25 30 1 2 3 4 5 6 7
Volatility / Standard Deviation (%) Time (Years)
Geographical Investment Area
Canada Toronto - The Greater Toronto Area
Canada is the 2nd largest country in the world at 9.98 million The Greater Toronto Area (called the GTA by local residents)
sq. kms and has a population of 33 million people. It is the largest metropolitan area in Canada and is centred
possesses a wealth of natural resources - virtually around the fifth largest city in North America, Toronto, after
inexhaustible. One of Canada's best-kept secrets is that it Mexico City, New York City, Los Angeles, and Chicago. The
possesses more oil than all of the Middle East. Canada is GTA has a population of over 5.5 million people (2005) and is
considered a financial safe haven due to its stable financial one of North America's fastest-growing regions.
and political systems and it boasts an AAA credit rating. The Greater Toronto Area (GTA) is Canada's undisputed
Canada's GDP growth was 3.5% in 2004, and since 2000 business and manufacturing capital and is the 3rd largest
Canada has had the highest average GDP growth of all G-7 financial centre in North America after New York and
countries. Canada is a low-risk business environment and has Chicago. The GTA generates 1/5 of Canada's GDP and is
been voted by the United Nations as the best place in the home to 40% of Canada's business headquarters. The GTA
world to live (highest standard of living) 8 out of the last 10 has superior infrastructure (IT, Highway, Rail) and boasts the
years. busiest highway in North America, the 401 King's Highway.
Canada has one of the world's most generous immigration The GTA is the economic powerhouse of Canada.
policies and is expected to continue its rapid population
growth.
Geographically, Canada provides long-term access to the North
American market of 400 million people, with a combined GDP of
11.4 trillion dollars.

TSI Global Locations Key Facts
Investment Strategy: Land Banking - Real Estate Investment
Investment Objective: Capital Preservation and Growth
Targeted Returns: 15-20% pa
Risk Profile: Low – Medium
Recommended Holding Period: Medium Term (4-6 years)
Minimum Investment: CAD$50,000
Initial Sales Charge: Zero
Benefits: Security, Diversity, High Returns
Geographic Location: Toronto, Canada
Offices: Toronto, Tokyo, Hong Kong
Investment Manager: TSI International Group
Currency: Canadian Dollars
Investment Update: Bi-annual
Security: Moody’s \"Aaa\" Provincial Government
Materials: English, Japanese, Chinese, French
How to Subscribe
For further information about TSI Land Banking or for more details on the application
process, please contact an authorised distributor in your area or a TSI International Group
representative.
Building a Future
Banking Land.....
e-mail: info@tsi-international.com
Disclaimer: The information contained in these materials is for information purposes only. It is not an offer to sell securities
or other instruments, nor a solicitation of an offer to buy securities or other instruments. There is no guarantee of performance,
and past or projected performance is not necessarily a guide to future results. Any performance simulation contained in this
document is not intended to be a statement as to future performance. This material may not be reproduced or distributed to
any other person or incorporated in any way into another document or other material without the prior written consent of TSI
International Group. Additional information is available upon request.
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