Building and Development Mortgages Canada Inc. (BDMC) announced today that lenders in a syndicate mortgage that funded Towns on Hall, a low-rise development in Richmond Hill by Fortress Real Developments Inc. (Fortress), received their principal back in full and an estimated annualized return of 8.13%.
The 1.3 acre infill site located just west of Yonge Street, in the heart of the old downtown Richmond Hill, was recently approved for 23 townhomes by the Ontario Municipal Board and a site plan application for the development was made in December 2016. “The increase in value was created by achieving zoning approvals. The trends we have seen for low-rise dwellings in the GTA, gave us an opportunity to explore a sale of the site while creating tremendous value for our stakeholders”, commented Vince Petrozza, COO of Fortress Real Developments.
This is the second exit in 2017 that has been generated by a sale of the lands through value created in the development and approval process. “Lenders received a healthy return over a 36 month period. The strong due diligence of the asset and market demand for low-rise approved sites created a positive return for all involved in the project,” 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 19th exit for lenders who have funded Fortress projects through a syndicate mortgage. To date, over $80 Million of principal has been repaid to lenders, and the average estimated annualized returns in the 19 completed projects is 9.44%.
Fortress CEO Jawad Rathore remarked, “Fortress continues to seek out high quality real estate assets across Canada and our development team is able to bring immense value to all the projects in our portfolio. Real estate offers tremendous flexibility, with opportunities to exit a development at several different stages, and as we look forward, 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
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.
*SOURCE Building & Development Mortgages Canada Inc.