For over 30 years, John Pennington has been a real estate entrepreneur, involved as a principal in a range of real estate developments, with primary emphasis on the sectors of hotels, multi-unit residential and seniors’ citizens housing. In addition to construction and development, his experience also includes property management, and arranging numerous debt and equity project financings.
Starting in the early 1990’s, John became actively involved in “turning around” troubled real estate syndicated properties. Typically these projects were widely-held, but illiquid, limited partnerships and co-ownerships that experienced difficulties some time after the initial syndication for one or more reasons, such as ineffective and/or conflicted property management, inappropriate or inadequate financing, significant arrears of property taxes and other liabilities, necessary but deferred and unfunded capital expenditures, etc. In order to correct these problems, in each case John would assume overall asset management on behalf of, and with the support of, the limited partners, and then implement the appropriate measures. To date, John has been directly responsible for the recovery and subsequent successful performance of over seventeen real estate projects in eleven separate syndications.
The Delta Lodge at Kananaskis (the “Delta Lodge”) is one of the syndicated projects for which John assumed responsibility and continues to represent the limited partners. The Delta Lodge is a 412-room resort hotel complex in Kananaskis, Alberta. First constructed for the 1988 Winter Olympics, the Lodge has been a popular resort destination over the years for a large number of both local and international groups and functions, including serving as the host of the G8 Summit Meeting in 2002. John is the principal of Kananaskis Alpine Resort Inc., the general partner of the limited partnership that owns the Delta Lodge at Kananaskis.
Over the course of his many work-out assignments, John also recognized that, in addition to requiring effective supervision of their investment, many investors in syndicated real estate projects also needed an opportunity to liquidate their investment on favourable terms in those situations where the underlying property was not likely to be sold in the near-term. Unlike REIT’s, many syndicated real estate projects are illiquid, in that their ownership interests do not trade in any established market.
To address this need for investor liquidity, starting in 2000, John created and continues to manage a group of private equity funds, on behalf of a select group of individuals, that have purchased illiquid real-estate-related securities from investors who would otherwise have little opportunity to sell their interests. These Funds’ holdings currently consist of minority ownership interests in seventeen previously syndicated real estate limited partnerships, co-ownerships and private companies, located in both Canada and the United States.
John holds an undergraduate degree in economics from Queen’s University, and a Master of Business Administration from the University of Western Ontario.