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Pension funds swoop in on Toronto condo towers as rental market heats up

E.B.

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#1
Can anyone confirm if this is happening:

Pension funds swoop in on Toronto condo towers as rental market heats up

This is a very popular asset class for pension funds. They like apartment buildings," said Mr. Finkbeiner, noting that depending on local rules those condo towers can be turned into rentals.

Trend may be too strong a word right now but two transactions in Toronto that saw institutional buyers swoop in and make offers to condo developers for entire buildings, squeezing out all the small-time investors, have caught the eye of people in the high-rise industry.

In one case, Toronto's red-hot Liberty Village, a neighbourhood being transformed in the city's western downtown core, saw Urbancorp cancel a major project - with industry insiders saying the project was sold en masse to one investor.

Another key deal saw an institutional player make a proposed 49-storey condo building near one of the city's main intersections at Yonge and Bloor into a de facto rental when Cityzen Development Corp. received an offer.

http://hedgeaccordingly.com/2015/03...o-condo-towers-as-rental-market-heats-up.html
 
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#2
The 49-storey building they are referencing is The Selby
 

Migos

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#4
Institutional investors are searching far and wide for yield. I wouldn't be surprised to see more of this as long as there is a lack of yield in the traditional fixed income markets.