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Hepsor and its Canadian partner Elysium Investments have acquired a development property in Toronto’s High Park neighbourhood on which there are plans to construct a two-tower residential project.
The acquisition of the property assembly is Hepsor’s fourth investment in Canada. The company is based in Estonia, and initially entered the Canadian market in 2023.
"Entering the High Park development was another step in implementing Hepsor's strategic plan,” Hepsor's chairman of the board, Andres Pärloja, said in the announcement. “In the spring of 2022, we decided that part of our business should be outside the European economic area and away from the Russian border. We chose the dynamic and rapidly developing Canadian market.
“We plan to continue expanding our positions in Canada to the extent possible and are constantly looking for new and interesting investment opportunities."
The High Park acquisition
Hepsor’s latest acquisition involves an assembly of 11 properties in the upscale Toronto neighbourhood. As Hepsor notes in the announcement, “High Park is one of Toronto's most sought-after residential areas, offering abundant greenery, excellent recreational opportunities, and convenient access to public transportation”.
The development area is planned to feature a high-rise building with rental apartments in two towers. It is the first Canadian project for which the company plans to include Estonian private capital investors.
The total investment value of the property and the first phase of the project is approximately $89 million, Hepsor states. High Park Limited Partnership, established for the project's development, will invest approximately $12.5 million.
To accommodate the first phase of the project, the company will seek a zoning amendment from the city. It also states planning activities will be initiated for the construction of a residential rental building. Development of the first phase is expected to last 24-30 months.
RENX has reached out to the company for additional comment and will update this article with new details if they become available.
Hepsor's Canadian expansion
Hepsor's residential development portfolio in Toronto includes positions in four development projects. During October, a fifth transaction under the same program is expected to be completed, which, when added, would mean that Hepsor and its partners have approximately 2,500 new apartments in their development pipeline in Toronto.
In addition to its residential development program, Hepsor is “actively seeking opportunities for the development of warehouse and logistics spaces in the vicinity of both Toronto and Montreal”.
About Hepsor
Hepsor AS is one of the fastest-growing residential and commercial real estate developers in Estonia and Latvia, and also operates in the Canadian market. Over the last 13 years Hepsor has developed more than 1,800 homes and approximately 388,000 square feet of commercial space.
The company also considers itself an innovator in the Baltic States, implementing engineering solutions that make its buildings more energy-efficient and environmentally friendly.
The company's portfolio is comprised of 24 development projects with a total sellable space of almost 1.9 million square feet.
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