DEVELOPMENT / REDEVELOPMENT
Recent policy initiatives of the Province of Ontario have mandated that residential growth will increasingly occur in built-up, urban areas as a technique to halt sprawl. The Greater Toronto Area (GTA) is projected to grow at an annualized rate of 125,000 persons per annum over the next 20 years which will result in a demographic demand for approximately 40,000 new dwelling units per year. Many of those units must be accommodated through the replacement of existing building stock.
Northam’s Development/Redevelopment program is predicated on the acquisition of underperforming commercial and industrial properties with the potential for revising planning entitlements to accommodate residential and mixed-use developments.
Our experienced management team analyzes opportunities from not only a floor space yield perspective but also with respect to the quality of prospective locations from a residential and retail marketability standpoint. The time in attaining planning approvals, and cost associated therewith, is critically assessed in evaluating each potential acquisition. Disposition proceeds are forecast through a combination of market comparables and third party consultants’ advice.
Northam enjoys a strategic advantage in contrast to homebuilding companies looking to create a supply of product in this fashion. The legal complexities of existing leases and the management of properties during the approvals phase present a deterrent to home builders that does not exist with Northam. We have the capability to more efficiently manage existing cash-flow and to better plan and lease the retail or office components of any resultant development.
The structure of an exit strategy would be established upon acquisition of each individual property. Flexibility in determining whether an outright sale to a third-party, profit-sharing, or a joint venture arrangement, is the most appropriate structure would be determined upon attainment of a property's zoning entitlement.