UPDATED WITH NEW DETAILS: Dream Unlimited Corp. (DRM-T) has found its partner to co-develop a major two-tower multifamily project at 49 Ontario St., in Toronto, announcing late Monday that CentreCourt will enter a joint venture to develop the site.

The development includes two towers and a shared podium, and is designed to deliver approximately 1,200 new apartments of various sizes into the market. Dream’s latest iteration of the plan includes 22 per cent of the apartments being designated as affordable housing.

The two towers are to feature approximately 800,000 square feet of housing space.

“We believe the skills and expertise that have made us leaders in condominium development will be just as valuable in purpose-built rental,” said Gavin Cheung, managing partner and president of CentreCourt, in the announcement. “49 Ontario St. will deliver much-needed market rental and affordable housing to downtown Toronto, and we’re excited to be partnering with Dream to make it happen.”

Financing, development charge waivers in place

Dream Impact Trust (MPCT-UN-T), the current owner of the redevelopment property, secured up to $647.6 million in government-affiliated financing earlier this year and obtained waivers for development charges from the City of Toronto. 

The partners plan to begin construction at 49 Ontario before the end of this year.

Dream Impact and its parent, Dream Unlimited, had been publicly seeking a development partner to move the project forward. In a separate release on Tuesday morning, Dream Unlimited said CentreCourt has acquired a 10 per cent stake "in line with our IFRS value," and will become construction manager of the project. 

“Dream has been at the forefront of delivering purpose-built rental through innovative public-private partnerships,” said Jamie Cooper, president of development and income properties at Dream, in its announcement. “Working with CentreCourt on 49 Ontario St. brings together complementary strengths to deliver a project that will serve the community for decades to come.”

This will not be the first joint venture for the two companies, though it will be their first foray together into purpose-built rental properties. Dream and CentreCourt have a 14-year history as partners in condominium communities - but that market remains stalled in the Greater Toronto Area amid high costs and low sales. 

This joint venture represents “a significant step in expanding their collaboration into purpose-built rental” the announcement from Dream states.

Dream Impact Trust also said in its release that an adjacent property to 49 Ontario, which is also owns, will not be utilized for this development. It expects to sell that property for over $10 million.

CentreCourt, Dream explore new partnerships

CentreCourt’s track record includes the financing, design and construction of 19 projects, totalling over 10,000 homes, and $5.6 billion in development value.

Dream brings a long track record in purpose-built rental and structuring and executing public-private partnerships. It has developed, or is currently developing, over 4,500 rental units worth over $2 billion upon full build-out.

Dream and CentreCourt are also working “closely together to identify and pursue additional purpose-built rental opportunities” as governments at all levels seek ways to accelerate housing development and ease both a shortage of housing and affordability concerns. 

This includes the federal initiatives such as the MURB policy, the new Build Canada Homes strategy, reductions in development charges, and other measures at the federal, provincial and municipal levels.

About Dream Unlimited and CentreCourt

Dream is a Toronto-based developer of office and residential assets, owns stabilized income generating assets in both Canada and the U.S. It has an established asset management business, inclusive of $28 billion of assets under management across four TSX-listed trusts, its private asset management business and numerous partnerships. 

It also develops land, residential and income generating assets in Western Canada.

CentreCourt is a fully integrated real estate development firm active across all stages of the development lifecycle – land acquisition, zoning, design, marketing, sales/leasing, construction and customer care. It specializes in highrise condominium and purpose-built rental communities located near major transit amenities and employment hubs in the Greater Toronto Area.

CentreCourt has delivered over 10,000 homes and $5.6 billion in development value since 2010.

In 2022, it launched CentreCourt Platform II, a $400-million fully committed long-term equity fund that provides financial strength and flexibility to support continued growth.