TORONTO—AUGUST 10, 2020 – The Investment Management Corporation of Ontario (“IMCO”) is committing $60 million to the Kingsett Affordable Housing LP Fund (the “Fund”). The $180-million Fund managed by Kingsett Capital Inc. will build and own high-quality apartment assets in Toronto and Vancouver at a time of severe affordable housing shortages.

“There is a housing unaffordability problem in Canada that has been driven by many factors, most notably a lack of supply of purpose-built rental properties, as most multi-residential development projects in Canada are on for-sale condominium product,” said Brian Whibbs, Managing Director, Real Estate, IMCO. “Our commitment to the Kingsett Affordable Housing Fund will deliver value to our clients, while creating sustained long-term growth and improving communities we live and work in.”

According to a 2019 Report by the Canadian Mortgage and Housing Corporation, vacancy rates continue to decline in Toronto (1.5%) and Vancouver (1.1%), which also exhibit the lowest turnover rates in Canada at 9.5% and 13.6% respectively, driven by unaffordability and a lack of available options. These factors further contribute to rent increases and affect home prices, which consistently outpace wage growth. Vacancy rates of affordable units are virtually 0% in both Toronto and Vancouver. Average rents for 2-bedroom units in Canada increased 24.6% over a 10-year period, with Toronto and Vancouver outpacing the country at 29.8% and 50.1% respectively.

IMCO is an active investor in multi-residential investments across North America. Participation in the Fund further increases IMCO’s exposure to the multi-residential sector, in line with its real estate strategy.