After meeting with a representative from HomeUnion, a firm that specializes in real estate investing, much has been discussed regarding Canada and the effect of the outpouring capital from foreign investors. The recent proposal in Toronto is said to be a luxury high rise building which will be situated in the entertainment district and will stand will all its 50 floor glory. The project is still in the planning stage and the firm responsible for the project is the Watford Equity.
Once done, the project will be converted into two parts. The first part will be a boutique hotel with an infinity pool together with rooftop bars. The second part will be converted into a luxury condominium. After completion, there will be 620 available units up for sale in the market. Though 75 per cent of the funding is provided by Watford Equity, the money is said to be a combination of capital investments from foreigners with India and China as major investors.
According to the CEO of Watford, Harshal Dave, the private equity is the total of all the money that came from foreign investors mainly from Israel, China and India. The U.K. is also one of the investors though the real owner of the U.K. money originated in India.
Toronto is considered as another version of Dubai located in Canada. Currently, there are 97 residential towers being constructed by developers which is more compared to other major cities in North America. The past five years, the real estate market is booming because of the succeeding construction and it looks like it will continue to do is in the following years. According to Fitch Ratings, the residential properties in Ontario are overpriced by around 25 per cent while the prices of the condominiums in the market has declined by around 10 per cent. There was no mention of Toronto.
Watford’s principal, Arik Auerbach, who is responsible in attracting the foreign investors, revealed that despite of the need for a market correction in the city of Toronto, investors are still interested especially with the real estate properties in the area.