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One of those cases where its not what PE says...............its what he doesn't say.
Toronto 49 Ontario Street | 152.4m | 44s | Dream | a—A
- Thread starter Edward Skira
- Start date
One of those cases where its not what PE says...............its what he doesn't say.
UtakataNoAnnex
Senior Member
...so what is it ProjectEnd-san is not saying then? The inside "joke" seems to be a bit too inside here...unless I (or we) are missing something entirely.
RCEO
New Member
NEWS:
49 Ontario will receive its construction financing before the end of this year (so in the next few weeks). Although not officially communicated, MPCT was waiting for the development charges to be waived, saving the project over $30 Million Dollars in development, as well as a big chunk of the property taxes waived for many years.
The city of Toronto Executive Committee Passed Waiving Development Charges on up to 7000 purpose built rentals today.
They anticipate development to begin in 2025.
Dream Impact (MPCT-UN.TO) Owns 100% of this development, and is expected to sell 75% for around 120M to partners, while maintaining to own 25% of the development.
This project will move forward very soon!
49 Ontario will receive its construction financing before the end of this year (so in the next few weeks). Although not officially communicated, MPCT was waiting for the development charges to be waived, saving the project over $30 Million Dollars in development, as well as a big chunk of the property taxes waived for many years.
The city of Toronto Executive Committee Passed Waiving Development Charges on up to 7000 purpose built rentals today.
They anticipate development to begin in 2025.
Dream Impact (MPCT-UN.TO) Owns 100% of this development, and is expected to sell 75% for around 120M to partners, while maintaining to own 25% of the development.
This project will move forward very soon!
Last edited:
RCEO
New Member
The city of Toronto passed the waiver of development charges.
The construction cost savings on this development will be around $40 Million. Dream Impact (MPCT-UN.TO) is expected to sell 75% of this building, and keep 25%. Original estimates in 2023 were around $130M, and that was without these development charge and property tax savings.
Dream Impact has $80 Million in debt against this property, leaving around $50 Million in liquidity (Plus 23M in cash on hand) = 73M in liquidity. Total Corporate debt at MPCT is 270M. After this sale/partnership, the REIT will cut its corporate level debt from 270M to 140M, and freeing up around $7M a year in cash flow instead of paying interest. 49 Ontario is 100% owned by MPCT.
Cooper stated he will be submitting this this to the city immediately (opens tomorrow), and expects Construction Financing to close before the end of 2024. TD stated likely the partnership will be announced at the same time. The construction financing will likely need the partner known by CMHC to be approved.
The city is really focused on speed. Getting shovels in the ground seemed to be their priority, without delay. So I would expect this project to start very quickly. The city will announce early December the results of phase 1, and at that time I am expecting they will announce which projects are going ahead due to this incentive.
The construction cost savings on this development will be around $40 Million. Dream Impact (MPCT-UN.TO) is expected to sell 75% of this building, and keep 25%. Original estimates in 2023 were around $130M, and that was without these development charge and property tax savings.
Dream Impact has $80 Million in debt against this property, leaving around $50 Million in liquidity (Plus 23M in cash on hand) = 73M in liquidity. Total Corporate debt at MPCT is 270M. After this sale/partnership, the REIT will cut its corporate level debt from 270M to 140M, and freeing up around $7M a year in cash flow instead of paying interest. 49 Ontario is 100% owned by MPCT.
Cooper stated he will be submitting this this to the city immediately (opens tomorrow), and expects Construction Financing to close before the end of 2024. TD stated likely the partnership will be announced at the same time. The construction financing will likely need the partner known by CMHC to be approved.
The city is really focused on speed. Getting shovels in the ground seemed to be their priority, without delay. So I would expect this project to start very quickly. The city will announce early December the results of phase 1, and at that time I am expecting they will announce which projects are going ahead due to this incentive.