- What KingSett Capital purchased 50% of the Birchmount Green affordable housing development in Scarborough
- Why It’s the latest investment from the KingSett Affordable Housing Fund
- What next KingSett has two other affordable projects in the works through the fund
KingSett Capital has acquired a 50% stake in Birchmount Green, a new 100% affordable housing development in Toronto.
The purchase was made through the KingSett Affordable Housing Fund, an open-end impact fund that has raised $180m of equity since launching in 2020.
Birchmount Green, at 1236 Birchmount Road in Scarborough, was developed by Mahogany Asset Management, with which KingSett is now a 50/50 partner on the project. The building opened in December 2023, bringing 220 affordable, supportive and rent-geared-to-income units to the market for low- and moderate-income households.
All units are at or below average market rent, and tenants were selected via not-for-profit referrals. The project received support from the City of Toronto’s Open Door program, which provides capital funding and financial incentives for new affordable housing development.
Birchmount Green also received $72.4m from the federal government’s National Housing Co-Investment Fund, now known as the Affordable Housing Fund.
KingSett’s Affordable Housing Fund, which is focused on providing affordable housing across major markets while generating steady returns, also has invested in Valhalla Village, at Bloor Street and the East Mall in Toronto. That project broke ground on its first phase in January.
“This investment complements Valhalla Village, the 172 units of affordable housing under construction in Etobicoke that also sit within the KingSett Affordable Housing Fund,” a spokesperson for KingSett told Green Street News. “[T]he KingSett Affordable Housing Fund is looking forward to delivering more buildings like Birchmount Green throughout the Greater Toronto Area.”
A second Scarborough development is already planned, this time for 705 Warden Avenue in partnership with Greenwin Holdings. KingSett and Greenwin were selected for the project by the City of Toronto’s CreateTO, which is providing the city-owned land as part of the Housing Now program.
Rezoning was approved for the 7-acre site in 2020, with plans to build 600 homes, 250 of which will be affordable rental units, as well as retail space and a child care centre. The property, which is currently a parking lot, will also see the expansion of Warden Hilltop Park and the renaturalization of the land beside Taylor Massey Creek.
Don’t miss out on the biggest stories from Canada – act now
During this launch period, Green Street News Canada is free to view. To continue reading articles after this period ends on July 8, click the button to inquire about a subscription, or adding Canada to your existing Green Street News subscription.