NORTHSTAR RESIDENCES CANADA

Project overview

• Project name: NORTHSTAR RESIDENCES CANADA
• Location: Toronto
• Sector: Residential real estate
• Nature: Construction of a modern multi-family residence
• Estimated duration: 30 months
• Developer: Real estate development company
• Objective: Build, market and operate a residential development intended for sale and/or rental.

The NORTHSTAR RESIDENCES CANADA project is seeking financial partners and investors wishing to take part in the development of a modern residential complex of approximately 100 units in Toronto.

Depending on the investor’s profile and the final agreements, participation may be structured as financing, an equity investment, a joint venture or a combination of several instruments.

Project costs are broken down into several categories. They are set out transparently so that each partner can assess the overall cost of its participation.

1. Studies and due diligence

Feasibility study, land appraisal, geotechnical study, environmental study, market study, legal checks, accounting and financial review. Projected budget: CAD 250,000 to 500,000.

2. Land acquisition

Purchase price, legal fees, title search, survey, appraisal, inspection and applicable transfer taxes. Indicative budget: included in the CAD 8,000,000 acquisition budget, excluding adjustments and applicable taxes.

3. Architecture and engineering

Architect, civil, structural, mechanical and electrical engineers, specialist consultants, plans and technical studies. Projected budget: CAD 2,000,000.

4. Permits and municipal fees

Building permit, planning applications, Site Plan Control, rezoning if required, inspection fees and fees for applications and approvals. The exact amount will depend on the project and the approvals required. Budget provision: CAD 3,000,000.

5. Development charges

Development charges are separate from permit fees and can represent a significant share of a real estate development budget. Current provision: CAD 4,000,000. The final amount must be calculated on the basis of the land and the number and type of units.

6. Construction

The projected construction budget is currently CAD 30,000,000. It covers site preparation, foundations, structure, roofing, façades, plumbing, electricity, heating and ventilation, lifts, finishes, common areas and the necessary fit-out.

7. Financing

Interest, arrangement fees, appraisal fees, lender’s legal fees, administration fees and security-related costs. Projected provision: CAD 2,500,000. The actual cost will depend on the type of financing and the terms negotiated.

8. Legal and professional fees

Real estate lawyer, corporate lawyer, accountant, tax adviser, financial consultant, notary or equivalent professional where required, and contract review. Projected budget: CAD 1,000,000.

9. Insurance

The project must carry appropriate insurance: construction, civil liability, site, professional indemnity where necessary, and insurance of the property after delivery. The cost will depend on the cover and the value of the project.

10. Marketing and sales

Project identity, website, brochures, architectural renderings, advertising, real estate agents and marketing of the units. Projected budget: CAD 750,000.

11. Project management

Construction management, coordination of contractors, administration, financial monitoring, cost control and schedule management. Fees will be set by the contract concluded with the project manager.

12. Contingency

A reserve is provided for rising material prices, technical changes, delays, unforeseen works and regulatory changes. Current reserve: CAD 3,000,000.

Summary of main costs

• Land: CAD 8,000,000
• Architecture and engineering: CAD 2,000,000
• Construction: CAD 30,000,000
• Infrastructure: CAD 2,500,000
• Parking: CAD 2,000,000
• Permits and approvals: CAD 3,000,000
• Development charges: CAD 4,000,000
• Legal and professional: CAD 1,000,000
• Marketing: CAD 750,000
• Financing: CAD 2,500,000
• Contingency: CAD 3,000,000
• Projected total: CAD 58,750,000

Financial transparency

All final costs must be confirmed by the competent authorities, the appointed professionals, suppliers and financial partners before any commitment.

No additional fee should be requested from an investor or partner unless it is clearly identified, justified and provided for in the contractual documentation applicable to the project.