Ontario Construction News staff writer
Rental housing company Tricon Residential Inc. and the Canada Pension Plan Investment Board have signed a deal to create a joint venture to develop rental projects in the Greater Toronto Area.
Under the agreement, CPP Investments will contribute up to $350 million, while Tricon will provide up to $150 million.
The joint venture will focus on developing rental apartments intended for a long-term hold and located close to major transit and employment nodes.
Tricon will serve as the developer, asset manager and property manager.
The joint venture’s first project is in Toronto’s downtown and is expected to consist of two towers totalling 870 units.
Construction is expected to start on the site early next year with completion expected in 2025.
“We are excited to partner with CPP Investments, one of the world’s largest and most respected institutional investors, to grow our Toronto multi-family development platform,” said Gary Berman, president and CEO at Tricon.
“The Joint Venture will increase the stock of private rental housing, a stated goal of the City of Toronto and Provincial Government, and will play an important role in enhancing the City’s vibrancy and livability,”
The first project, valued at $600 million, has been placed under contract and is located in Toronto’s Downtown East neighbourhood. It will include two towers totalling 870 units on a 1.8-acre site, and feature a mix of one, two, and three-bedroom units as well as a commercial fitness facility, rooftop garden, outdoor pool, 24/7 concierge, automated parcel management system, bike lockers, and a half-acre public park.
Construction is expected to commence on the site in early 2022 with completion expected in 2025, pending closing of the transaction.
“The Greater Toronto Area continues to experience significant undersupply of purpose-built rental properties, and even less stock of modern, institutionally owned and operated rental properties,” said Hilary Spann, managing director, CPP Investments.
“We see a long-term opportunity to build and invest in properties alongside Tricon, a well-respected owner, developer and operator in the region, to meet this need with newer multi-family properties in transit-oriented locations.”