TORONTO, July 31, 2014 – Cranson Capital Securities Inc. (“Cranson Capital”) is pleased to announce that it has successfully raised $14.5 million for Plazacorp (“Plaza”), one of the leading real estate developers in Canada, for a new condo development in Toronto’s downtown core. This development project gives over 100 accredited investors the opportunity to participate in a direct equity partnership with Plaza entitling them to a share in the profits of the proposed development. The conservative forecasts for the project call for a 122% profit to investors over an expected term of 5 years.
The development site consists of a high rise condominium (“condo”) located in the heart of Toronto’s vibrant Entertainment District, which is rapidly developing into an attractive urban residential neighborhood. It is surrounded by the city’s best dining, live entertainment, nightlife, art, film and professional sports which cater to and feature every kind of taste and demographic. “Being one of the fastest developing districts of the city and having an exceptional strategy of enhancing the pedestrian realm of the area, assured us that this would be a great opportunity for investors and potential condo purchasers to reap the rewards of a promising investment,” says Plaza President, Anthony Heller.
Contrary to the recent notions of tribulation in Toronto’s condo market, Urbanation, Canada’s leading condo market research company, recently released its 2014 first quarter results which gives great insight into what is actually happening in the housing market in Toronto. With the influx of approximately 80,000 new immigrants moving to the GTA annually, condo vacancy rates at a decade low of 1.7% and the scarcity of land due to the Greenbelt Protection Act, the demand for new housing continue to rise, forcing developers to build upwards. The shortage of single family homes combined with the strained affordability for first-time home buyers, due to the tightened mortgage rules implemented by Canada’s former Minister of Finance Jim Flaherty, has further swayed the general public to invest in condominiums. Urbanation indicated that 86% of condo units under construction in the GTA were already sold. The housing market seems to be moving towards a supply issue and in order to meet the projected demand, the number of condo units in the GTA would have to grow by 230% over the next 20 years.
“With the continued demand for new housing in Toronto and the comprehensive expertise of Plazacorp in residential real estate development, a private placement investment of this kind is something we encourage our investors to capitalize on,” commented Devon Cranson, President at Cranson Capital Securities, “We look forward to continuing to provide investors with opportunities to participate with developers in expanding the housing supply in the GTA to meet the demands of our growing population.”
Plaza is one of Toronto’s most experienced residential condominium construction and development organizations with over 7,000 condominium suites either already completed or under construction. Since 1982, 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 our investors and entrepreneurs. Cranson Capital Securities is registered with the Ontario Securities Commission as an Exempt Market Dealer and specializes in raising capital from accredited investors for private placements in real estate developments, technology start-ups and high growth companies. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for our entrepreneurs. For more information visit: www.cransoncapital.com.