Government-backed fund acquires unsold condo units in Toronto
What happened
High Art Capital, an investment firm, has purchased 43 unsold condo units in a complex called Line 5 in midtown Toronto. The firm paid $22.3 million for the bulk purchase, which represents the first transaction for the $1.3-billion fund. The purchase was made at an average price of $518,000 per unit, according to data from CoStar Group.
From theglobeandmail.com
Why it matters
The fund is backed by $300 million in financing from the Ontario government through its Building Ontario Fund. This purchase is part of a larger trend where large investors are buying unsold inventory in the region at a discount due to the recent market downturn.
From theglobeandmail.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- OntarioSpeculative
The provincial government could deploy capital through the fund to acquire distressed assets in the Toronto market.
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The entities involved
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Toronto
capital and largest city of the province of Ontario, Canada