Toronto Aura at College Park | 271.87m | 78s | Canderel | Graziani + Corazza

I was buying a Starbucks on my way home at RoCP around 5pm and CTV was filming a suit in front of the south tower near the sales office. Perhaps something will be on the CFTO broadcast tonight, or the website.

Of course it could be completely unrelated but I thought I'd flag it.
 
skyscrapersucks said:
I just called the sales office, the starting date has already postponed to the end of the year, but we all know it's impossible to start digging in winter. They denied any financial hardness and boast they're the best selling condo and wouldn't fail as Bloor 1.
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1 Bloor didn't fail due to poor condo sales, and plenty of developers have pushed back their start dates. I wouldn't read too much into it.
 
I dropped by the sales office today. I was told there that they are 95% sold and that they will start digging in SPRING 2010. Man oh man... the date keeps getting pushed back further & further.
 
BrianSolo said:
I dropped by the sales office today. I was told there that they are 95% sold and that they will start digging in SPRING 2010. Man oh man... the date keeps getting pushed back further & further.
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That's horrible!! Is there a date that they HAVE to start digging before buyers can start asking for their money back?
 
If they are 95% sold why wait until Spring? Weird they did not start last Spring when they were 80% sold. And sorry if this was discussed earlier.
 
They must be trying (and failing) to get financing. I guess builders need to have enough cash to finance construction themselves these days.
 
I don't have the inside track on this project but a few thoughts:

EV requirements require specific net proceeds for financing to occur and despite some discussion in other threads suggesting massive profits that are somehow being generated, the fact is that margins in many projects have thinned to the point that lending institutions are becoming much more skittish about financing - this is compounding existing credit shortage related issues.

Loans for large projects are being syndicated. The largest residential loans available for high-rise in the GTA are around $50m with the exception of TD which in some cases in going up into the $60m range. Dealing with multiple lenders, each with their own conditions is a complex (and expensive) process.
 
So when they say construction is starting in Spring of 2010 what they really mean is that they are hoping to get financing by then, but if not, they will postpone the project indefinitely?
 
I'm guessing they can get financing now, but they’re waiting to negotiate cheaper rates as the economy improves. This strategy, however, could backfire should markets fall again thus closing the current financing window…
 
Mike is absolutely correct, its very difficult to put a large loan together. And now each developer has to put in additional dollars into each project. In the past on the project size of Auro developer would need to put up 12-15% of the over all cost, now banks want you to put up 25%. On this project its probably would be between $80-90 million. Plus guranties for the loan. It becomes too much of a risk, to bet one project.
 
Personally, I think this type of syndicated financing that's forcing developers to take on more risk is a very very very good thing. If there's one thing that's going to keep the Toronto condo market from experiencing any downturn, it's the lack of new product that has been marketed over the past year or so. When developers margins are so high that they feel comfortable taking the risk (of course, not caring at all what it might do to the thousands of owners already in condos) then there's no penalty. This double check will keep the pipeline of new developments just large enough to satisfy demand. As we've seen with a substantial shortage of resale product on the market, it's just possible that with the 1000's of new condo's coming online over the next year and a half that they will satisfy the market without any overspeculation happening.
 
Mike in TO said:
^ I was speculating based on broader industry trends. The delays may have nothing to do with financing.
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I agree, CS is a pretty legitimate company with lots of real estate and it may have nothing to do with the financing, but a lot of the newbies on this forum, without knowing just keep on bringing up financing difficulties when a project does not go ahead on time.:confused::rolleyes:
 
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Automation Gallery said:
I agree, CS is a pretty legitimate company with lots of real estate and it may have nothing to do with the financing, but a lot of the newbies on this forum, without knowing just keep on bringing up financing difficulties when a project does not go ahead on time.:confused::rolleyes:
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Yeah, because the notion that a massive project that is constantly being postponed can't get financing in this economy is ludicrous. :rolleyes:
 
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