A 61-property real estate portfolio, primarily based in the Greater Toronto Area (GTA) and currently owned by The Conservatory Group of Companies, is now available through a sales process conducted by EY.

“The Portfolio represents a unique blend of premium location advantages, asset diversity and substantial scale, offering unparalleled investment opportunities,” EY said in an email to RENX.

“It stands as the largest real estate portfolio to enter the GTA market in decades, presenting investors with the opportunity to secure significant footholds in Canada’s most dynamic real estate market.”

Conservatory Group was founded in the 1980s by Theodore Libfeld, who transformed it from the merchant home building business he had started three decades earlier into a vertically integrated real estate conglomerate.

The Markham, Ont.-based company is involved in land use planning, design, site servicing, home building and property management. It has built and sold more than 30,000 residences in the GTA, owns and manages commercial and residential income-producing properties, and has a portfolio of high- and low-density lands in varied stages of development.

Why the portfolio is for sale

Conservatory Group’s founder died in 2000 and his four sons each became 25 per cent owners. They subsequently engaged in a years-long squabble about how different facets of the business should be run and EY was appointed by the court to wind it up and sell it.

Prospective purchasers have the opportunity to make offers for individual properties, collections of assets or the entire portfolio.

The majority of properties within Conservatory Group are wholly owned, though some are held in conjunction with other parties through joint ventures. The company also retains partial interests in a number of properties.

Income-producing commercial properties

The income-producing commercial portfolio is comprised of 22 buildings combining to total 1.46 million square feet of net rentable area.

The properties are primarily retail-oriented and located in the GTA, with several of the smaller assets being part of mixed-use residential complexes. 

Many of the properties have strong occupancy rates, with major tenants at the larger locations including Costco, No Frills, Sobeys and Dollarama.

The largest property is a 244,774-square-foot Sobeys-anchored retail plaza with 1,207 parking stalls on 18.1 acres at 1233-1255 The Queensway at Kipling Avenue in Etobicoke. It offers a major redevelopment opportunity, with potential for more than 7,300 residential units. 

Several of the other assets also offer significant redevelopment potential, presenting opportunities to increase value and maximize returns for investors.

Income-producing residential properties

The income-producing residential portfolio is comprised of six buildings in Toronto encompassing 1,790 units. They’re nearly fully leased, ensuring a stable revenue stream. 

The multiresidential properties range in size from 195 condominium units operating as rental units within a 306-unit, 31-storey complex at 736 Bay St. to a two-tower, 476-unit community spanning eight acres at 1580-1600 Sandhurst Circle.

Most properties have a significant gap to market rents, offering the opportunity for immediate value creation.

Several sites offer significant redevelopment or development potential, with some having advanced through some of the approval and design process. There’s potential to develop 1,678 additional units.

High-density development land

There are 12 high-density development properties in the portfolio. There are approximately 16,000 residential units proposed to be developed and the sites combine for a gross floor area of 13.5 million square feet.

Three of the properties are in prime downtown Toronto locations: 636 Bay St. and 70 and 100 Edward St.; 80-82 Church St.; and 150-158 Pearl St. and 15 Duncan St.

Three of the other properties are also in Toronto, while there are three in Mississauga and one in Markham.

Low-density development land

The low-density development land portfolio features 23 sites totalling 884 acres that have the potential to accommodate 3,458 single-family residential units.

The properties are located in Toronto, Mississauga, Richmond Hill, Brampton, Cheltenham, Whitchurch-Stouffville, Milton, Halton Hills and Oshawa. The majority of the sites are are slated for development within the next five years.

The largest site is 207 acres with more than 33,000 feet of lot frontage at 10445 Trafalgar Rd. and 10332 8th Line in Halton Hills. It’s in draft plan submission with the potential to develop more than 1,500 residential units. 

The second largest property is 96 acres at Trafalgar Road and 15th Side Road in Halton Hills. The current draft plan accounts for 311 townhomes and also includes a number of additional medium- and high-density residential blocks.

The third largest property is 65 acres with 9,740 feet of lot frontage at 10th Line and Forsyth Farms Drive in Whitchurch-Stouffville. It’s draft plan-approved for the development of 316 homes. The site also includes a commercial block.