Wednesday, 23 April 2014

ICE Construction Update

From York and Bremner

Aura Condo Construction Update

From Yonge and Dundas Square

One Bloor Construction Update

From Yonge and Bloor Intersection

Vancouver Condos Flipped For Large Profits

Investors at Vancouver’s Olympic Village have flipped some of the project’s highest-priced condos for quick profits of $500,000 per unit, while Vancouver taxpayers seem likely to lose about $400 million on the soured deal. The Province’s investigation of sales records of 30 units in the Village’s high-end Canada House suggests the city’s plan failed to capture significant funds that could have been returned to taxpayers, according to several industry experts.

 The Canada House — including 60 luxury units in the waterfront building that housed Canada’s men’s gold-medal hockey team — was released for sale in 2012. In November 2010 the city had tasked receiver Ernst & Young with selling Village condos to regain as much as possible of the failed private project’s $1.1-billion liability. Unlike most of the Olympic Village — which still has 68 unsold units six years after going to market — Canada House attracted investors right away. Property document searches of half of the 58 units sold in Canada House revealed five quick flips. -

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Burlington Condo Projects Stun New Buyers


It had the sound of an old-time revival meeting: "One hundred people attended the presale event, 80 people were converted."

Developer Vince Molinaro is talking about the soft sales launch in February of the Molinaro Group's Paradigm condominiums in Burlington.
Molinaro will build five condo towers on Fairview Street at Brant on five acres of land just steps away from the Burlington GO Station. The buildings, ranging from 18 to 24 storeys, will contain 929 condos.
"Proximity to GO is the key," Molinaro, the company president, says from Paradigm's chic sales centre. "People buying here will be hopping a train to work. The price point will appeal to the upwardly mobile young person just starting out and to empty nesters, too."


Burlington: Paradigm Condo Project Gets Set for Launch in Burlington | 5 x 20 fl | Approved

Partners Real Estate Investment Trust | Toronto and Barrie

Partners Real Estate Investment Trust  is pleased to announce that it has closed its acquisition of three retail centres (the "Properties") under the terms described in the REIT's press release dated April 2, 2014. The REIT purchased three Ontario Properties which include the mixed use urban Hamilton City Centre in Hamilton, the multi-tenanted retail Crossroads Centre in London, and a multi-tenanted retail property in Kemptville. The REIT has purchased only the stabilized in-place Net Operating Income ("NOI") of the Properties.
"This acquisition is one of many of the initiatives that the REIT has undertaken in the last 60 days. We are thrilled to complete this acquisition. These assets serve to enhance our internalization objectives within the Ontario marketplace," stated Ron McCowan, Partners' interim CEO. "Ontario is a geography where Partners now boasts a strong operational infrastructure. This acquisition also greatly improves the size of our property portfolio, increasing our gross leasable area by approximately 22%. We look forward to working with Holyrood Holdings Limited as they pursue at their sole cost new leasing for the REIT which focuses on national retailers. In addition the vendor, again at their sole cost, will execute significant investments which cover the development activities and capital expenditures the Properties."

Acquisition Terms

As previously disclosed, Partners has paid Holyrood Holdings Limited (the "Vendor") an immediate consideration of approximately $90,100,000. This amount includes $83,200,000 to satisfy the purchase of the Properties, with the balance of $6,900,000 as a promissory note receivable generating annualized interest of 5.4%. This consideration has been satisfied by (i) the assumption of debt secured by the Properties, (ii) the issuance of 1,188,188 units of the REIT ("REIT Units"), issued at an effective price of $5.80 per REIT Unit, and (iii) the issuance of 4,813,517 class B units (the "Class B Units") of a limited partnership formed by the REIT for the purposes of completing the acquisition, at an effective price of $5.80 per Class B Unit. The Class B Units are exchangeable for REIT Units on a one-for-one basis and the economic equivalent of REIT Units and carry the right to vote at the REIT level. Given the effect to the issuance of the REIT Units and Class B Units, the Vendor is expected to hold approximately 18.7% of the REIT's outstanding Units, calculated on a fully diluted basis.

The Properties consist of a total of approximately 612,000 square feet of gross leasable area. The REIT has acquired 462,027 square feet of fully leased premises for the previously noted acquisition cost of $82,300,000 which is expected to generate $5.4 million in annualized NOI. The purchase price paid for the Properties relates only to fully leased units and six head leases. As a result of this transaction, Partners effective portfolio's occupancy will increase by 0.5 percentage points to 96.9%, compared to 96.4% as at December 31, 2013.

Pursuant to the transaction, Partners has entered into a development agreement with the Vendor for a term of 3 years, subject to limited extension rights. At its sole cost and expense, the Vendor will serve as the developer and is obligated to perform specific leasing, marketing, and development activities including major tenant improvement investments. This agreement is specific to detailed vacant or undeveloped space located on the Properties. Upon receipt and approval by Partners of qualified leases, the REIT has agreed to pay the Vendor (i) up to $25,000,000 (the "Contingent Deferred Payment") on a total of 149,483 square feet of gross leasable area, and (ii) an earn-out in respect of certain undeveloped space (the "Earn-Out Payments) that would result in the REIT acquiring an additional 69,000 square feet of gross leasable area over and above the 611,510 square feet already acquired.

Calgary and Vancouver Condo Construction Set to Spike Upwards

While construction is likely to pick up in Calgary to better meet demand for single family homes, taking some of the pressure off prices, Toronto faces a longer-term problem, Warren said in an interview. That’s because new-home construction has plummeted over the last few years in the wake of the provincial Places to Grow policies, which have pushed most new construction into higher density condo towers.

Overall, Canada’s real estate market “appears to be moving back into a more sustainable trajectory,” says the report, which focuses more on the global housing recovery.

During the first two months of this year, national sales were down 1 per cent, year-over-year, and about six per cent below the 10-year norm. That’s largely because of slow job growth, affordability challenges and “a widening gap between the cost of owning versus renting,” it says.

Prices, however, were up almost 10 per cent year over year — but really closer to half that, five per cent, when extraordinarily high sales in Canada’s priciest market, Vancouver, were factored out.