Investment Management Corp of Ontario has committed $60 million to Kingsett Affordable Housing Fund, a vehicle managed by Canadian real estate private equity firm Kingsett Capital. The fund will build and own apartment assets in Toronto and Vancouver at a time of affordable housing shortages.
IMCO Invests in Kingsett Affordable Housing Fund
TORONTO—AUGUST 10, 2020 – The Investment Management Corporation of Ontario (“IMCO”) is committing $60 million to the Kingsett Affordable Housing LP Fund (the “Fund”). The $180-million Fund managed by Kingsett Capital Inc. will build and own high-quality apartment assets in Toronto and Vancouver at a time of severe affordable housing shortages.
“There is a housing unaffordability problem in Canada that has been driven by many factors, most notably a lack of supply of purpose-built rental properties, as most multi-residential development projects in Canada are on for-sale condominium product,” said Brian Whibbs, Managing Director, Real Estate, IMCO. “Our commitment to the Kingsett Affordable Housing Fund will deliver value to our clients, while creating sustained long-term growth and improving communities we live and work in.”
According to a 2019 Report by the Canadian Mortgage and Housing Corporation, vacancy rates continue to decline in Toronto (1.5%) and Vancouver (1.1%), which also exhibit the lowest turnover rates in Canada at 9.5% and 13.6% respectively, driven by unaffordability and a lack of available options. These factors further contribute to rent increases and affect home prices, which consistently outpace wage growth. Vacancy rates of affordable units are virtually 0% in both Toronto and Vancouver. Average rents for 2-bedroom units in Canada increased 24.6% over a 10-year period, with Toronto and Vancouver outpacing the country at 29.8% and 50.1% respectively.
IMCO is an active investor in multi-residential investments across North America. Participation in the Fund further increases IMCO’s exposure to the multi-residential sector, in line with its real estate strategy.
The Investment Management Corporation of Ontario manages $70.3 billion of assets on behalf of its clients. IMCO’s mandate is to provide broader public sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm’s length from government and guided by a highly experienced and professional Board of Directors. Follow us on LinkedIn and Twitter @imcoinvest
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