One of the most profitable subsectors of our real-estate division is the land acquisition and development strategy. These projects typically commence with the assembly of adjacent off-market private properties. Our agreements to purchase the lands are conditional upon certain approvals and therefore extended sufficiently to permit adequate due diligence. With long-term contractual agreements in-hand, we begin rezoning and development. Once enough comfort around the new site’s potential has been reached, the lands are revalued – yielding substantial appreciation. At this stage, we agree to sell the lands to a builder with relevant conditions in place.
These projects typically require the smallest amounts of equity – as the properties are usually sold before final closing. These projects are generally also the shortest in duration. Together, these aspects make our pre-construction land acquisitions and development projects the most profitable in terms of return on investment.
This segment of our Real Estate division started in 2016 with the acquisition, development, and sale of a three-acre property on Lakeshore Road in Oakville, Ontario.