Interest in Real Estate Rights

12 Months Ended

Apr. 30, 2016

Interest In Real Estate Rights

Interest in Real Estate Rights

As discussed in Note 5, MegaWest received an interest in real estate rights of 30 condominium units from Fortis pursuant to the Megawest Transaction.  Between October 15, 2015 and April 30, 2016, Fortis sold and MegaWest is entitled to a profit of its interest in real estate rights of 25 condominium units with a cost basis of $12,723,980 for gross proceeds of $24,434,274, of which $4,829,693 was included in accounts receivable – related party as of April 30, 2016. MegaWest incurred commissions and closing costs of $1,220,581 and general and administrative expenses of $15,000 related to the 25 units sold.  For the year ended April 30, 2016, the Company recognized a net gain of $10,474,713 related to its interest in real estate rights contributed by Fortis.

The following table summarizes the activity for interest in real estate rights:

	April 30, 2016
Balance at April 30, 2015	$	-
Additions – interest in real estate rights of 30 condominium units contributed by Fortis		15,544,382
Less: cost basis of interest in real estate rights of 25 condominium units sold by Fortis		(12,723,980	)
Balance at April 30, 2016	$	2,820,402