Toronto-based Elysium Investments Inc. and its Estonian developer Hepsor AS have partnered on their second acquisition within a month, a one-acre site in the Mount Dennis neighbourhood of Toronto.
Two high-rise purpose-built rental towers on a shared podium are planned for the site, which is located at 70-104 Brownville Ave. The development area consists of an assembly of 17 properties.
An entity named Brownville Limited Partnership was formed by Elysium and Hepsor for the development of the project, of which Hepsor owns 50 per cent.
“This acquisition supports our vision of expanding access to quality housing in areas with strong transit connections,” Sayf Hassan, CEO of Elysium, said in a release. “We are committed to delivering well-planned, transit-oriented developments that meet Toronto’s pressing housing needs.”
For Hepsor, it marks the fifth transaction in the past 18 months for its residential development portfolio in Toronto. In September, also in conjunction with Elysium and another Toronto firm, Oikoi Living, the Tallinn-based company acquired an interest in a development property in the High Park neighbourhood where plans are to build a two-tower residential project.
Expectations for the Brownville development
To allow for Phase 1 of the high-density development, Hepsor notes in its release it will undergo a rezoning process and planning activities will be conducted to prepare for construction. This first stage is anticipated to take 24 to 30 months.
Access to public transit is a key feature of the site, which Elysium said meets “the growing demand for well-designed, transit-oriented rental housing in Toronto.” It is a short walk from Mount Dennis Station, a mobility hub that will link to service from light rail transit, the TTC, GO Transit and UP Express.
The total investment value of the property and Phase 1 is pegged at approximately $34 million. The Brownville LP will invest around $8 million into the Mount Dennis project, and will include funds from other Estonian investors.
The Mount Dennis acquisition means Elysium, Hepsor and their partners have plans for approximately 3,000 new apartments under development in Toronto.
About Hepsor and Elysium
Real estate investment firm Elysium prioritizes markets in the Greater Toronto Area for its developments, and forms limited partnerships with Elysium as the general partner, its website states. Those partners include Terracap and Trolleybus Urban Development, Pinemount Developments Ltd., and Oikoi.
Entering the Canadian market in 2023, Hepsor’s chairman Andres Pärloja said the decision was a strategic move away from Europe and areas along the Russian border. The Canadian market, he said in a release, is “dynamic and rapidly developing”.
Hepsor has finished 43 projects over 13 years in its home country and its Baltic neighbour Latvia, according to its website.
In addition to rental housing, the company is also interested in developing warehouse and logistics spaces in the Toronto and Montreal areas.