Articles from Connect CRE

Volkswagen has started construction on a $7-billion EV battery-cell plant in St. Thomas, Ontario, despite challenges such as U.S. tariffs and declining EV sales. The gigafactory, set for completion in 2027, is expected to produce 90 gigawatts worth of batteries annually for the North American market. The project involves major contracts for foundation work and steel installation, which are vital for the development of the plant. The facility aims to supply battery cells to Volkswagen's operations in North America and promises significant economic benefits to the local community.

The federal and Ontario governments will jointly invest $3 billion in the Darlington New Nuclear Project in Clarington, Ontario. This project involves the construction of small modular reactors (SMRs) with Ontario Power Generation leading the project. It aims to create thousands of jobs and significantly boost economic activity, with four reactors expected to be operational by the mid-2030s. The newly fast-tracked project has an estimated construction cost of $20.9 billion.

Toronto will launch the first housing development by Build Canada Homes, a new federal agency focused on affordable housing. The project, Arbo Downsview, will use innovative construction methods such as prefabrication and modular building to deliver 540 homes, aiming for at least 40% affordability. To support this, the federal government will invest $283 million, with the city contributing $425 million to upgrade local infrastructure. This partnership aims to stimulate the construction of more below-market homes in Toronto.

InterRent REIT is nearing the completion of its $4-billion acquisition, having secured approval from the federal Investment Canada Act and previously passing a Competition Act test. Carriage Hill, a newly formed entity by CLV Group and GIC, is set to acquire InterRent in this all-cash transaction. The acquisition, which includes a mix of cash and units for unitholders, is expected to conclude later this year. This merger promises enhanced scale and operational efficiency for the combined entity.

NexLiving has secured an option to acquire a townhome project in Ottawa’s Barrhaven suburb, consisting of 108 units for $43.5 million. The project, named The Conservancy, will feature two-storey stacked townhomes and is expected to complete in late 2026. NexLiving will partner with Devcore Group for financing and construction, with a 12-month rental-income guarantee once completed. The net operating income is projected to be between $2 million and $2.3 million annually.

Hive Digital Technologies has purchased a data center in Toronto through its subsidiary Fuel Buzz for $17.25 million in cash and shares. The facility will be upgraded to tier one standards, expanding Buzz's Canadian presence in high-performance computing and AI. This purchase aligns with Buzz's partnership with Bell Canada and demonstrates Hive's strategy to transform former Bitcoin mining facilities into AI-ready infrastructure. Hive, originally from Vancouver, emphasizes its commitment to advancing its data center portfolio in Canada.

The federal government is investing $13 billion in the new Build Canada Homes program, which aims to expedite affordable housing construction across Canada. The initiative plans to use federal land, partnerships, and financial tools to double housing supply and reduce homelessness, with an initial focus on six federal sites. Additional funding will go towards rental protection, transitional housing, and partnerships with Indigenous communities. Ana Bailão has been appointed CEO, and the program will prioritize using domestic materials to counter US tariffs.

The Ottawa city council has approved a six-tower mixed-use residential project near St. Laurent shopping centre. Groupe Oradev plans to build 1,768 multi-residential units with office and retail spaces integrated into the podium. These towers will range from 21 to 35 storeys and will include a public park in the development. The project will also feature approximately 13,000 square feet of non-residential space.

For the first time, Canadian executives in the multi-family real estate sector have been recognized with the ApartmentBuildings.com 100 Awards. These annual awards, organized by Connect CRE, celebrate innovation and accomplishment in areas such as build-to-rent and mixed-use developments with residential components. Prominent Canadian winners include BJ Santavy, Naama Blonder, Sarah Segal, Mark Goodman, and Harvey Russell for their exceptional achievements in the industry.

Urbacon Data Centre Solutions (UDCS) has secured $320 million in financing to further develop its data center facilities in Toronto's Barker Business Park. This expansion will enable the park to deliver approximately 150MW of capacity across six facilities. The financing received a high rating and was oversubscribed, highlighting investor confidence in UDCS's capabilities. UDCS is recognized as Canada's only fully integrated developer, designer, builder, and operator of mission-critical data centers.

Toronto is experiencing its lowest housing starts in 30 years due to declines in condominium construction, largely driven by reduced investor demand and high costs. Rental-apartment construction also decreased, although less sharply, and similar trends were observed in Vancouver due to high development charges and pre-sale requirements. Across Canada, while purpose-built rentals helped stabilize figures, overall homebuilding was flat with notable declines in major cities like Toronto and Vancouver. This poses risks to housing supply, workforce retention, and affordability, prompting calls for systemic changes in the housing sector.

CI Global Asset Management has agreed to acquire Forge First Asset Management, an alternative-asset manager with about $1 billion in assets. Forge First, which uses a long-short investment approach focusing on North American securities, including commercial real estate, will continue under its current name. The acquisition is anticipated to accelerate Forge First's growth thanks to CI Global's extensive distribution and marketing capabilities. The transaction is expected to close in the fourth quarter of 2025, pending regulatory approval.