Savings of Approximately $97,000 per affordable apartment, and $58,000 per market rate rental apartment,
expected to be approved in November. Not including the HST/GST exemption previously approved.
Olivia Chow announced:
- Waiving development charges on new rental builds
- 15% Discount on Property Taxes for 35 years
- 7,000 units to be approved immediately in phase 1, 13,000 more in phase 2
Notes:
Must Start Construction by 2026
MPCT has about 3,900 apartments ready to start in Toronto
Phase 1 Could be approved mid November, for the first 7,000 units. Phase 2 will need provincial funding to proceed.
MPCT Toronto developments shovel ready:
49 Ontario = 1,094 Units
Quayside = 2800 are approved
Could be ready for 2026 or sooner:
Quayside = 1800 units (on top of the 2800 already approved)
Oak House = 653 units
Victory Silos = ~986 units (not confirmed)
This will add a lot of value for 49 Ontario to new partners. GST/HST has been removed from our new Apartments, reduced property tax (15% annually), waiver of development charges, and non-recourse CMHC financing for 10 years at the 10 year bond rate. This development (and all our developments) keep getting better and better.
It is possible, or even likely, Mr. Cooper and Dream were involved in providing input to Olivia Chow on what is needed to expedite developments, and this is why 49 Ontario has not yet been announced. With expedited approval by the city to proceed, we could see a 49 Ontario deal announced in the very near future.
I would expect we would get approval for our 49 Ontario development in phase 1 of the Cities plan, and we likely have our CMHC construction financing already in place.
Quayside was approved for Phase 1 density earlier this year for the first 2800 units. I am doubtful we would start all 2800 units in the next 2 years, but starting 2 of the 4 buildings approved in phase 1 is not out of the question.
Oak House I have been wondering why we haven't started yet. This news might be what we have been waiting for, allowing us to proceed on another ~650+ Units.
In summary, this incentive will save us many millions and incentivise starting these builds now, significantly reduce our land loan carry costs, and after the developments complete, over time, add significant income to the REIT.
Less Land Loans, Less Interest, More Income. We are on the way to some serious FFO.
Sources:
https://secure.toronto.ca/council/agenda-item.do?item=2024.EX18.2
https://x.com/MayorOliviaChow/status/1851692019040637340
https://storeys.com/toronto-purpose-built-rentals-incentive/
https://www.waterfrontoronto.ca/news/quayside-milestone-phase-1-rezoning-approved-by-council
MPCT Research Below:
Government is doing everything in MPCTs Favor.
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36226580
I will add to this, No GST on new apartment builds, as well as CMHC loans are non-recourse. Dream is one of very few on CMHCs fast approval regular developer program. + New Potential Toronto Rental Incentive Mid November 2024 removing development charges and 15% off property taxes
Scarborough Junction, The Hidden Gem
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36281186
MPCT 2026 Forecast with Slide Presentation Images
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36266982
Huge Increase to NOI over the next 12 months. Details:
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36263654
Our Developments, with Pictures
https://stockhouse.com/companies/bullboard?symbol=t.mpct.un&postid=36235736
Q3 2024 Commentary (Not Official)
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36279263
2025 MPCT-UN Catalysts & Path To No Land Loans
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36245063
Insider Purchase Bhalla, Amar, ($50,000) Units on September 26
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36253768
Links to MPCT Property Development Photos
https://stockhouse.com/companies/bullboard?symbol=t.mpct.db&postid=36224127