May 1, 2020

Transacting in the Midst of COVID-19

Friday, May 1, 2020 (Toronto, ON) – Canada ICI is pleased to announce the successful arrangement of a ~$288mm construction loan for a 48-storey luxury condo development in Yorkville, Toronto. The transaction was arranged and led by Mr. Jonah Brown, and Mr. Aaron Sun, of Canada ICI’s Toronto office.

Over the past 45 days, the Canadian Real Estate market has been brought to a halt as a result of the recent global pandemic. Anecdotes of contracted deals falling apart, tightening liquidity, and tenant failures have had a downstream impact on the entire real estate ecosystem – a reality that even the largest developers and landlords aren’t immune to. 

Canada ICI was able to arrange a ~$288mm Construction Loan on behalf of one of Toronto’s leading development firms for their upcoming project 55C Residences – a 651 unit residential high-rise slated to begin construction in fall 2020. The loan was negotiated in the weeks leading up to the shut-down and was finalized, committed, and funded during the government mandated lockdown. The loan is comprised of a syndicate of five institutional lenders which included a leading life insurance company, credit union(s), and Canadian subsidiary’s of foreign banks.

“Transacting in a time of uncertainty requires two key elements” says Jonah. “Great partners and a steady hand. If it weren’t for the diligence and commitment of both the Borrower and Lender(s) along with multiple layers of consultants and counsel to work around the clock, I’m not certain we would have had the same outcome. It really took all parties, driving ahead in unison to get this done”. “This transaction in this environment doesn’t get funded unless you’re dealing with best-in-class counterparties. The Borrower’s experience, track-record, and quite frankly their discipline were pivotal in the syndication of Lenders committing to stay the course throughout the transaction” – said Mr. Brown

“Dealing with risk mitigation in an economic situation that was (and is) evolving daily was certainly challenging, and we were tremendously fortunate to have been working with a syndicate of Lenders who understood the market dynamics and who had the resolve to move forward with a great project. As a result, a winning outcome was forged, and we all worked towards the mutual goal of funding the transaction” – Mr. Sun said.

While markets continue to rebalance throughout the country, Canada ICI continues to remain active, providing market-leading advisory services to the country’s leading real estate owners and developers.

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