Almega and Windsor buy Mississauga site for redevelopment | RENX
The 2.65-acre property located at 60 Dundas St. E. in the Cooksville neighborhood was acquired on September 8 from a group of private investors for $ 39.6 million. The tenants of the current esplanade include restaurants, a pharmacy, a small supermarket, a medical clinic, a Canada Post outlet and several other retailers.
âMy dream is to build two rental properties and sell a third condominium for a mixed development site,â Almega CEO Basem Hanna told RENX. âThis would allow our investors to recover capital immediately through the co-ownership process, which is a much more transactional process.
“But the majority of the site would remain rental property and generate cash flow.”
Plans for Cooksville
Mississauga’s official plan designates Hurontario and Dundas streets as an âintensification corridorâ that will be developed with a greater concentration of homes, employment opportunities, transit and other services.
âIt’s a neighborhood that hasn’t seen a lot of development yet, but it’s in every plan of the city,â Hanna said.
The goal is to have 20 percent of rental units classified as affordable. The development is also slated to include a single community space, although Hanna said it was too early to give details on this component.
As with other Almega developments, 10 percent of the profits will be donated to charities chosen by employees.
Windsor Private Capital participation
After missing out on the acquisition of another Mississauga property at 180 Burnhamthorpe Rd., Hanna realized that Almega needed a larger financial partner for this project when she considered the acquisition for the first time in February.
Mutual contact helped put the company in contact with Windsor and the site was acquired for Almega’s fifth fund.
Windsor, headquartered in Toronto, is an investment banking firm that, along with its affiliates, advises and manages over $ 2.5 billion on behalf of institutional and high net worth investors.
She has completed transactions in a wide range of industries including real estate, financial services, technology, telecommunications, consumer products, manufacturing and retail.
âThey have done a number of developments in Mississauga along the Hurontario Corridor with other developers,â Hanna said. âThey bring a wealth of knowledge and not just a check for value.
âThey’ve been through this process with others and have been invaluable to us in making sure we’re aligned wherever we need to be in order to perform on a multi-turn site.â
Mississauga-based Almega is Cooksville’s property development partner, but Hanna said major decisions will be made jointly by the two companies. The property is expected to be licensed within three years and fully developed within 10 years,
824 Sheppard Avenue West
Almega goes through the approval process for a project to 824 Sheppard Avenue West, between Allen Road and Bathurst Street, in Toronto.
Two commercial spaces, 14 residential rental units, a detached house and surface parking currently occupy the property.
Almega has proposed to construct a 14-story mixed-use building with 270 rental residential units (20% of which are classified as affordable), four commercial units, a daycare and 213 underground parking spaces.
Hanna is hopeful that construction will begin in early 2023 and he estimates it will take three and a half years to build.
Almega’s development pipeline
Almega’s goal is to create long-term recurring cash flow through the acquisition, development and ongoing management of affordable, institutional quality multi-family apartments.
âWe have over 1,000 units under development and the total value of our assets exceeds $ 1 billion,â Hanna said. âWe have over a million square feet in development. “
Almega is exploring potential acquisitions in Brampton and Mississauga, where Hanna believes she can include elements to benefit local communities.
One project would be in the range of 300,000 to 400,000 square feet while the other would be over two million square feet. Hanna said there was a better chance of acquiring the smaller property.
âWe’re starting to see bigger deals. The real estate community has welcomed us and we’re trying to earn the old-fashioned respect, which is to do good business and execute the things we say we’re going to do.
âReal estate is a long game. My first major project will probably be completed in five years. I am building a pipeline and working my best to keep the promises I make.
Hanna wants Almega to start exploring acquisition and development opportunities in the United States next year.