TORONTO — H&R Real Estate Investment Trust has reported on five major projects in various stages of development in the Greater Toronto Area in its Q3 report.
The REIT currently has two industrial properties under development located at 1965 Meadowvale Blvd. and 1925 Meadowvale Blvd. in Mississauga totalling 336,800 square feet. The builds are expected to be completed in Q4 2023 and Q1 2024, respectively. The REIT expects the construction costs for these two properties under development to be approximately $14.1 million for the remainder of 2023 and $4.4 million in 2024.
In February 2023, H&R entered into a lease agreement to fully lease 1965 Meadowvale Blvd., totalling 187,290 square feet, for a term of 10 years at market rents with annual contractual rental escalations. In March 2023, H&R entered into a lease agreement to fully lease 1925 Meadowvale Blvd., totalling 149,510 square feet, for a term of 12.5 years at market rents with annual contractual rental escalations.
H&R is also progressing on plans for a mixed-use tower to rise at 53 and 55 Yonge St. in Toronto. The REIT is evaluating comments from the City of Toronto received in September on a re-submission made to clear conditions that were set by the Ontario Land Tribunal. H&R expects to have rezoning approval in place by Q1 2024 for a 66-storey mixed-use tower, including 511 residential units with approximately 159,000 square feet of replacement office area and approximately 13,000 square feet of retail area.
In July, the final report recommending approval of the rezoning application for 310 Front St. was adopted by Toronto City Council. The statutory appeal period for the passing of the zoning bylaw was completed in August, with the rezoning now binding. The rezoning approval is for a 65-storey mixed-use tower including 578 residential units, approximately 119,000 square feet of replacement office area and approximately 2,000 square feet of retail area.
In October, H&R submitted a Site Plan Approval application to the City of Mississauga for a new single storey 122,400-square-foot industrial building at 6900 Maritz Dr. in Mississauga which would replace the existing 104,689-square-foot office building. Demolition is expected to commence in Q4 2023 and Site Plan Approval is expected by Q1 2024.
In the U.S. the REIT undertook construction on two residential development properties in 2022. The total development budget to complete the two properties is approximately US$110 million. The REIT expects its construction costs for these two properties to be approximately US$27.9 million for the remainder of 2023 and US$82.1 million in 2024.