Hankyu Hanshin Properties has entered its second joint venture with Graywood Developments, partnering to develop a 53-storey, 591-apartment build-to-rent tower at 241 Church St. in Toronto, the companies announced Wednesday.

Hankyu Hanshin, a Japan-based real estate developer and investor, is already a partner with Graywood at its $120-million Claystone development. The 141-unit, seven-storey condo project is at 2375 Lakeshore Rd. W. in Bronte Village in South Oakville. 

The Claystone partnership had been announced earlier this year.

Financial details of the partnerships have not been disclosed.

"Our partnership with Hankyu Hanshin Properties continues to strengthen,” Graywood president and CEO Stephen Price said in the announcement. “241 Church is an exciting addition to our build-to-rent platform and reflects Graywood's commitment to delivering high-quality rental housing in core urban locations. 

“With Toronto's strong rental fundamentals and the City's push for more rental supply, we see tremendous opportunity for continued growth in this sector."

Construction under way at 241 Church

Located at the Toronto Metropolitan University campus, near Toronto's financial core, construction at 241 Church commenced in 2024 and has progressed to ground level. Completion is targeted for Q1 2028. 

The project will deliver a mix of studio, one-, two- and three-bedroom apartments, plus an amenities package including co-working lounges, fitness and wellness studios, an outdoor terrace, party and work rooms, and a dog run.

"Following our successful first investment with Graywood in Oakville, we are delighted to embark on this second venture in downtown Toronto,” Hankyu Hanshin’s director, overseas business headquarters, Masahiko Toda, said in the announcement.

“This project demonstrates our long-term commitment to Canada and our belief in Toronto's vibrant rental housing market. Graywood's expertise and local insight have made them an ideal partner as we continue to expand our international portfolio."

Graywood Developments will remain the lead developer and constructor for 241 Church, with Hankyu Hanshin Properties as equity partner. 

Graywood expands apartment developments

The project continues Graywood's expanding focus on rental housing across the GTA and HHP's broader international growth strategy in major gateway cities. It announced just a month ago plans to develop five purpose-built rental communities comprising approximately 3,000 apartments.

It had also previously announced a desire to grow its relationship with Hankyu Hanshin.

“This transaction underscores the growing interest from Japanese institutional capital in Canadian real estate and reflects confidence in Toronto's long-term rental housing story,” Johann Rodrigues, senior vice-president, capital markets at Colliers Canada, said in the announcement. “ We look forward to seeing this project become a landmark in the downtown skyline."

Colliers played a support role in the partnership.

Earlier this year in an interview with RENX about the Claystone project, Graystone president and CEO Stephen Price said Hankyu Hanshin, a Japanese rail line and real estate conglomerate, started expanding its real estate presence outside Japan about 10 years ago.

It first formed partnerships with developers in five ASEAN countries, primarily Thailand and Vietnam, as well as Indonesia, the Philippines and Singapore. It then ventured into Australia and the U.S. 

HHP selected Canada as its next country based on its positive long-term fundamentals, demographics and strong need for housing. That led to a vetting process of potential Canadian partners, with Graystone emerging as the company of choice.

About Graywood and Hankyu Hanshin 

Graywood Developments is a Toronto-based private investment management firm focused on the development of build-to-sell and build-to-rent communities and commercial properties. 

During its 40-year history, Graywood has managed 56 projects, representing $9.7 billion in development value and 32,400 units across North America.

Today, the firm has 12 active projects, which include 5,900 residential units (3,000 of which are rentals), representing $4.7 billion in development and an asset management portfolio valued at $1.6 billion.

Hankyu Hanshin Properties is the real estate development arm of the Hankyu Hanshin Holdings Group, a Japanese conglomerate with over 100 years of history and diversified interests in railways, retail, hospitality and urban development. 

Beyond Japan, Hankyu Hanshin Properties has expanded its business in Asia, Australia and North America. Since starting its overseas business in 2015, Hankyu Hanshin Properties has developed over 72,600 residential units, including those currently under development.