Toronto property developer Harry Stinson today announced the formation of the Stinson Property Fund.

SPF is a specialized real estate lender specifically designed to allow individual investors to become directly involved in the real estate financing industry.

“You can park your money in the bank at 1%, and they’ll lend it to Nortel … or you can invest it directly in SPF at 8%, and you know exactly where it’s being used, what for, and by whom. It’s not for everyone”, says Stinson.

Individual investors will receive a minimum 8% interest on their money. SPF then loans funds to selected projects at 12%. At the end of each year — similar to an income trust — the surplus interest is split between the investor and Stinson, whose company will manage the fund.

Stinson says the fund does not charge any management fees to the investors. Each borrower/loan pays a 1% administrative fee, but the investors receive their 8% return in full.

According to Stinson, the fund will specialize in financing real estate projects that offer prime locations, distinctive architecture, and environmental innovation.

BDO Dunwoody LLP are the auditors for SPF, and Weir, Foulds LLP are the solicitors.