The current portfolio of District Property Trust (District REIT) is not large, but the trust’s vision certainly is. It’s even bringing in some star power in an effort to raise its profile, partnering with HGTV personality Scott McGillivray.
“District REIT was formed in the latter half of 2017 with the purpose of creating a vertically integrated series of companies that can raise capital, develop real estate and ultimately buy and own the real estate as well,” District REIT executive vice-president Erik Kroman told RENX.
The Valour Group is a full-service real estate entity based in Burlington, Ont., that includes:
* Valour Management Inc., which is involved in project monitoring, management and accounting, as well as development consulting, sales, leasing, and property, construction and site management;
* Valour Capital, which sources real estate assets with approved development proposals, and is involved with property and project review and assessment, developer reviews, market analysis, project costing and validation, financial projections, independent appraisals, legal reviews, acquisition or partnership suitability, finance model structuring, project exit and real estate development and management plans.
“The Valour Group is able to develop very specific, purpose-built real estate for the REIT. We can lock in the agreement of purchase and sale up to two-and-a-half years in advance, which secures the price for the REIT,” Kroman explained.
“Naturally, during that time, the REIT will benefit from some appreciation in the underlying real estate while the development group gets comfort in knowing that there’s an exit plan and a financing strategy in place for the portfolio. We have a bit of a win-win where more and more developers are looking to work with the Valour Group because of our potential exits.”
Partnership with McGillivray Group
That includes McGillivray Group, which is led by chief executive officer and HGTV host Scott McGillivray. As part of a strategic partnership, McGillivray serves on the executive committee and assists the REIT’s leadership with realizing its acquisition strategy and growth plans.
McGillivray Group launched in 2014. It spans four business areas, including brand management, product and service partnerships, real estate developments, and television and digital production through McGillivray Entertainment.
Scott McGillivray also co-founded real estate investing education company Keyspire. He’s invested in properties across North America and is also a contractor and author.
“He made a very compelling case to work with District REIT,” said Kroman. “Since he’s come on board, we’ve really enjoyed his presence and his strategic insights on value creation on each of the properties and also his understanding of various pricing and cap rates in some of the markets that we work within.
“He’s a fantastic property manager as well, and we plan on leveraging that as we build some satellite offices to facilitate some of the future growth that we have. He’ll have a variety of contributing functions.”
District REIT investment strategy
District REIT is focused on investing in stabilized, diversified income-producing real estate assets in Southern Ontario.
It targets off-market opportunities and its objective is to maximize investor value by providing stable, monthly cash distributions and long-term appreciation through effective management and cumulative portfolio growth.
District REIT has a distribution of eight per cent per annum and a capital appreciation target of three to five per cent per year, for a combined return of 11 to 13 per cent.
That capital appreciation target hasn’t yet been reached, but Kroman said it’s getting closer.
District REIT has raised more than $14 million since February 2018. It has deployed the funds to acquire three properties, with a combined appraised value of approximately $25 million, at a large discount.
Kroman said some of the REIT’s pipeline of future investments also includes a “heavy discount.”
District REIT current and target properties
District REIT’s three current properties are:
* Assumption Plaza, a 22,415-square-foot, fully leased retail plaza in Brantford that includes a TD Canada Trust bank branch and Circle K convenience store;
* McClary Apartments, comprised of two low-rise, multifamily apartment buildings with 34 units in London, that are more than 90 per cent occupied;
* and 100 Bronte – The Rose, a mixed-use building in Milton, where the commercial area is 100 per cent leased and the residential units are more than 95 per cent leased.
District REIT is targeting these properties, has financing in place and hopes to close on the acquisitions in the first quarter of 2020:
* Riddell Gardens, a 56-unit, two-bedroom townhouse development located in Woodstock with a gross leasable area of 49,868 square feet that’s close to full occupancy;
* Wonderland Path, comprised of 47 three- and four-bedroom townhomes in London that are close to full occupancy;
* and Victoria Westmount Centre in Kitchener, which includes a two-storey medical office building with a finished basement, a retail plaza and a restaurant pad.
District REIT growth strategy
“The growth strategy calls for a series of acquisitions in 2020 that will bring the gross book value of real estate under management to $100 million,” said Kroman. “The most important pillar in District REIT’s strategy is strong property management.
“The REIT prides itself on creating value through diligent property- and portfolio-level real estate management.”
Kroman said there’s “about $400 million in real estate that can roll in over time to support the growth plan. The actual REIT itself could become quite large just based on the portfolio of potential acquisitions.”
District REIT has “a diverse group of accredited investors, alongside growing interest and commitment from local family offices and institutions,” according to Kroman. “We’re at a sweet spot with the REIT now, where it’s ready to catch some steam behind it.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
