TORONTO, August 21, 2018 – Plaza Partners – Windfield Estates Fund announced that it has completed a $20 million capital raise led by Cranson Capital Securities Inc. Funds raised from over 150 accredited investors have been used to acquire an 80-unit townhouse rental complex on a 5-acre site off Leslie Street between York Mills and Highway 401 in Toronto.
The Fund’s management believes that the site is currently under-utilized and has potential to obtain increased density for future development. They plan to hold the asset over the next 3 – 5 years during which time land value is expected to rise significantly.
“With the GTA’s scarcity of land, there is significant upside potential for investors who purchase under-utilized land as a buy and hold investment” said Devon Cranson, President and founder of Cranson Capital Securities Inc. “We expect to offer investors a targeted total return of approximately 120% within 5 years and the property generates sufficient cash-flow to cover carrying costs in the interim” Cranson added.
The ability to provide affordable, family-oriented housing in neighborhoods like York Mills will be crucial to accommodate the continued population growth expected in Toronto over the next 5 to 10 years. With the rising costs of detached homes, families are becoming increasingly reliant on the townhouse market as the affordable alternative to traditional, single-family homes.
Across the GTA sales volume for townhouses has increased 21.9% year over year while average selling prices increased by 4.1% compared to just 0.5% for the detached home category. Despite this strong demand, new supply is limited. This is particularly true in North Toronto where, according to the CMHC, only 22 new townhouse units have been introduced to the market since 2016. 100% of the units were sold upon completion and only a handful of units are currently under construction. As these trends continue, the value of the site for potential future development is expected to rise at an accelerated rate.
In addition to Plaza Partners – Windfield Estates Fund, Cranson Capital has recently led successful capital raises for Plaza Partners – The Donway Fund, Plaza’s 5888 Yonge Street Fund and the Plaza Land Fund. To learn more about investment opportunities with Cranson Capital please visit cransoncapital.com.
Plaza is one of Toronto’s most experienced residential condominium construction and development organizations with over 10,000 condominium suites either already completed or under construction. Since 1981, the Plaza philosophy of providing a high level of standard quality in every condominium built has made its name synonymous with lasting value. Plaza was among the first condominium developers and builders in Toronto to include such finishes as granite counters and floors, marble bathroom counters and floors, halogen lighting, under-mount sinks, porcelain tile, engineered hardwood floors and stainless steel appliances as standard features rather than costly upgrades. Plaza developments can be found in many of Toronto’s most desirable urban neighbourhoods including Yorkville, North Toronto, King West, Queen West, Lawrence Park, Liberty Village, St. Lawrence Market, Harbourfront, and Mt. Pleasant Village.
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small to medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support investors and entrepreneurs. Cranson Capital Securities is an Exempt Market Dealer that specializes in raising capital through private placements in real estate, growth companies and financial services. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for entrepreneurs.
This press release contains "forward-looking statements" including statements with respect to Plaza Partners – The Windfield Estate Fund’s potential returns and appreciation of land values. All forward-looking statements are based on current beliefs as well as various assumptions. By their very nature, forward-looking statements involve inherent risks and uncertainties. Readers should not rely on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially. Plaza Partners – Windfield Estates Fund does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of Plaza Partners – Windfield Estates Fund except as may be required by law. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Plaza Partners – Windfield Estates Fund.