TORONTO, Oct. 11, 2017 /CNW/ - Building and Development Mortgages Canada Inc. (BDMC) announced today that lenders have received early exits in two syndicate mortgages that funded low-rise residential developments in the Greater Toronto Area.
The first development, Woodbridge Park, a partnership between Fortress Real Developments and Sierra Building group, is a 14.8-acre site planned for a mix of traditional and back-to-back townhouses. The approved site, located in Vaughan, saw a very successful sales launch, and the value that was established through the approvals and sales process, created an opportunity for an exit before the start of construction. This value allowed for the project to be refinanced and exit all syndicate mortgage lenders.
The second development, Stationwest, a 13-acre site in Burlington includes traditional, stacked, and back-to-back townhouses, as well as mid-rise condominium apartments. The project, a partnership between Fortress Real Developments and Adi Development Group, has achieved its approvals and was brought to market in 2016. The prime location and striking designs proved popular with purchasers as phases sold out quickly. The sales outperforming projections allowed for a refinance of this project as they get set for construction.
"We choose to divest our interest in Woodbridge Park and Stationwest to invest further into other pre-development real estate opportunities and new acquisitions," explains Fortress CEO Jawad Rathore. "We participate in the full development timeline, from pre-purchase due diligence, planning & approvals, right through to sales and construction. We also recognize the value created in getting parcels approved and pre-sold. In both these instances, we are pleased to turn over our investment prior to completion when the opportunity presented itself."
"The syndicate mortgages in these projects totaled over $40 Million. The value created in both instances allowed for syndicate investors to trade their position with institutional investors and exit early," said Ildina Galati, Principal Broker for BDMC. "Lenders continue to benefit from these well analyzed and executed opportunities as our project portfolio continues to exit developments with excellent returns and loan-to-value ratios."
BDMC has now exited lenders from 26 development projects with over $150 Million of lender principal paid back to date. The average estimated annualized returns for these exits are 9.15%* (unweighted). Our brokerage has closed over 14,000 lenders into syndicate mortgages in 80 projects across Canada. The projects range from high-rise residential to condo commercial projects offering a variety of tenures and built forms for them to choose from. Through BDMC, over $890 million has been funded into development projects to date with the projects having a built out value of $6 billion.
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
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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