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    Öffentlich-private Partnerschaft legt 1,3-Milliarden-Dollar-Fonds zum Kauf unverkaufter GTA-Eigentumswohnungen auf


    Öffentlich-private Partnerschaft legt 1,3-Milliarden-Dollar-Fonds zum Kauf unverkaufter GTA-Eigentumswohnungen auf

    https://financialpost.com/real-estate/canada-billion-fund-purchase-unsold-gta-condos

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    5 Kommentare

    1. JDGumby on

      Hundreds of millions of public dollars to a private real estate company and no guarantee of repayment or any return on the profits. There’s a public ownership share, but since they’re refusing to say how much it is, I’m betting it’s the tiniest share possible…

    2. scottb84 on

      >The majority of BOF’s return is expected to come from the interest on the mezzanine loan, which has a term of about five years. BOF’s equity position gives the fund a “nominal” ownership interest in the portfolio

      Ah yes, privatized profit and socialized risk. As is tradition.

      In any event, the kinds of condos that are sitting unsold are not the sort of affordable housing for which there is a desperate need: units that are appropriately sized and designed for families.

      There is a reason that these units aren’t selling now that GTA condos have lost their lustre as investment products. They fucking suck.

    3. LaserRunRaccoon on

      Ew… this sounds like public funds bailing out risky private investments. Something tells me this won’t be a bailout for the mom-and-pop investors who could at least arguably deserve some sympathy either.

      > A private Canadian investment firm has teamed up with a **provincial Crown agency** to purchase and convert some of the growing inventory of unsold condominiums in the Greater Toronto Area (GTA). If all goes according to plan, the condos will be converted into long-term, affordable rental housing.

      Ah yes, this all makes more sense now. Doug Ford figuring out a way to help his developer buddies offload unsold inventory.

    4. PineBNorth85 on

      This better not go through. They built the wrong type of condos. When you invest you sometimes make a poor decision. This was one. They should have to live with it like any of us would.

    5. PopeSaintHilarius on

      >The pair will focus on purchasing blocks of newly completed condo units that have yet to find buyers and convert them into 2,200 rental homes, roughly 550 of which will be designated as [affordable housing](https://financialpost.com/tag/affordable-housing/).

      Seems like a good thing for increasing the housing supply, since

      A) It’ll help ensure condo projects actually get built instead of getting cancelled (which means losing all of the units that would have been built, not just the unsold ones).

      B) It’ll result in these 2200 condos becoming rental homes, including some affordable units.

      My only question is how much (if any) public subsidy this would get, or whether the public funding will be recouped through the rental income.

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