TORONTO, Feb. 23, 2017 /CNW/ - Building and Development Mortgages Canada Inc. (BDMC) announced today that lenders in a syndicate mortgage that funded Bronte Crossing, a Kingridge Developments (Kingridge) and Fortress Real Developments Inc. (Fortress) project in Oakville, received their principal back in full and an estimated annualized return of 8.23%*. Lenders were repaid 18 months ahead of the loan maturity date.
Lenders were paid out on completion of a sale of the 6-acre parcel located just north of the Queen Elizabeth Way (QEW) at 1099 and 1105 Bronte Road in Oakville to the Region of Halton. Fortress and Kingridge co-managed the development since the lands were acquired in 2015. "We are always seeking out lands that have a strong inherent value, and in this case the region had an immediate need to secure this parcel," said Dan Marion, President of Kingridge Developments.
Fortress COO Vince Petrozza added, "Real estate offers tremendous flexibility, with opportunities to exit a development at several different stages. Fortress and our partners are continuously creating value in our projects by achieving appropriate approvals, selling or leasing space, and building desirable real estate."
This is the third Fortress & Kingridge partnership lenders have participated in, including another Oakville commercial site that has just been occupied and registered and a residential site in Georgetown currently under development. "Lenders in this project received a healthy return with an early exit in a situation where the due diligence of the asset and strength of the development team came into play," said BDMC principal Ildina Galati. "We are pleased that syndicate mortgage lenders have benefited from this well analyzed opportunity."
The sale of these lands marks the 18th exit for lenders who have funded Fortress projects through a syndicate mortgage. To date, over $75Million of principal has been repaid to lenders, and the average estimated annualized returns in the 18 completed projects is 9.5%*.
Fortress CEO Jawad Rathore remarked, "Fortress seeks out high quality real estate assets across Canada. We purchased these lands in Oakville just over 18 months ago and are pleased to have sold them to the municipality to the benefit of all stakeholders. We anticipate a very busy 2017 as our portfolio of more than 70 sites matures"
About the Companies
Building & Development Mortgages Canada Inc. - established in 2007, is a premier mortgage brokerage licensed in Ontario, Nova Scotia, Alberta, Manitoba, British Columbia and Saskatchewan. BDMC closes all of the syndicate mortgage transactions that fund Fortress projects. For more information visit: https://bdmc.ca
Kingridge Developments is a fully integrated development company headquartered in Oakville, Ontario. For over a decade, the management of this dynamic and growth-driven company have acquired and developed single and multi-unit residential and commercial projects throughout southern Ontario. http://kingridgedevelopments.ca
Fortress Real Developments Inc. is a Canadian real estate development company that seeks out and analyzes opportunities in major Canadian markets. The company is focused on quality projects with recognizable alpha in residential low-rise, high-rise, commercial and industrial market segments. https://fortressrealdevelopments.com
SOURCE Building and Development Mortgages Canada Inc. (BDMC)
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