ICYMI - Property brothers: Kielburgers facing scrutiny over WE organization's $50M real estate empire
In the Regent Park/Moss Park area, WE are high profile.
One big question mark in understanding the overall operations of the WE organization is deciphering exactly how much revenue its for-profit entity ME to WE generates, and what assets and liabilities, including real estate, the entity has to its name. Because ME to WE is a private company it is not obligated to make its financials public. The Kielburger brothers, according to WE, have a “controlling interest” in the company and are paid roughly $125,000 each annually in salary.
After tax net income is essentially profit made by a company after all taxes have been paid, and earnings deducted from revenue. Some of the biggest names in international development own either no real estate, or significantly less than WE Charity, Canada Revenue Agency filings show. “If you’re a $3 billion charity, you might have some flexibility in what you can do with investing. But if you only make say $1 million in a year, you have to be careful to not put most of that one million in one kind of asset,” Blumberg said.
The lawyers the Post spoke to are of the opinion that this kind of set-up is more typical for religious institutions like the Catholic Church, or large hospitals that require massive premises, rather than an international development organization.Article content continued The total value of all of these holdings in terms of purchase price — an amount confirmed by WE — is $11.9 million, but it is still unclear, despite direct questions to WE, if they represent all of the real estate holdings of ME to WE.On January 25, 2019, a numbered corporation registered to Fred and Theresa Kielburger sold a property at 329 Queen Street East to ME to WE Foundation for $2.6 million.
In addition, back in 2009, they offered the use of 212 Carlton Street — another building they owned — rent-free to ME to WE Social Enterprises Inc. In 2011, a building nearby, 227 Carlton Street became available to purchase and the Kielburger parents bought that building and again, provided it rent-free to ME to WE. It is unclear whether ME to WE still owns these buildings in some way.
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