Cranson Capital Real Estate Development Fund Successfully Closes with $17 Million in Capital Raised

TORONTO, September 9, 2024 — Cranson Capital Securities is pleased to announce the successful closing of the Cranson Capital Real Estate Development Fund (“the Fund”). Launched in Q2 2022, the Fund has achieved full subscription, raising approximately $17 million in capital and is now officially closed to new investors.

The Cranson Capital Real Estate Development Fund provides investors with access to a range of residential real estate development projects that leverage developers’ capabilities to deliver substantial returns. The Fund was established with the objective of deploying capital into a diverse portfolio of residential development opportunities across the Greater Toronto Area (GTA) and Southern Ontario.

Over the past 24 months, the Fund has actively invested in a variety of projects, completing six key investments in different regions and development types. These investments include a low-rise development in Markham, a rezoning project along Kingston Road in Pickering, a stacked townhouse development in Scarborough, a luxury boutique condominium in Forest Hill, a mid-rise project in Bayview Village, and a townhouse project in South Oakville. With a single investment, over 240 accredited investors have participated in all six projects, with many opting to invest through their RRSP/TFSA accounts.

The Fund’s strategic approach has led to successful deployment of capital across a diverse pool of investment opportunities, underscoring Cranson Capital’s commitment to identifying and capitalizing on opportunistic real estate development projects.

Key highlights of the Fund’s investments are as follows:

Plazacorp Upper Markham Village: In October 2022, the Fund invested $7.5 million in a joint venture project with Plazacorp for a low-rise development in Markham. The development is in Upper Markham Village boarding Stouffville on the corner of McCowan Road and 19th Ave. The site is a short drive to the city centre of Whitchurch-Stouffville and the Stouffville GO station. The project will deliver 113 single-family homes and 105 townhomes, offering new housing for 218 families.

Fairview Towns Limited Partnership: In July 2023, the Fund invested $1.5 million into the Fairview Towns LP (the “FTLP”).  The FTLP closed on the acquisition of 2771 and 2773 Victoria Park Ave. in July 2023 and entered in a development agreement with Profile Developments to build 64 stacked townhomes. This project aims to provide attainable housing with 32 two-bedroom and 32 three-bedroom units in Scarborough. It is located near the Don Valley Parkway and Highway 401, with the Agincourt GO Train station just 4 km away and the TTC Don Mills Subway Station only 2.5 km away.

Plaza Partners - 1095 Kingston Road Limited Partnership: In June 2023, the Fund invested $1.25 million into the Plaza Partners - 1095 Kingston Road Limited Partnership. Resident, formally Plaza Partners, the developer on this project, has acquired an income producing commercial property that management believes has future development potential. While the property currently generates income, the investment aims to advance the land entitlement process with the goal of selling to a developer around 2027-2028. The Town of Pickering’s updated official plan calls for significant density increases in the area, which aligns with regional growth trends and enhances the property’s future value.

DealCore Properties - Thelma Avenue Limited Partnership: In November 2023, the Fund invested $1.5 million in the Thelma Avenue Limited Partnership from Dealcore Properties. The site, located in Forest Hill South adjacent to the Forest Hill Village at Spadina and Lonsdale, is set to be developed into a luxury condominium. The plan includes a 6-storey building featuring 24 three-bedroom units, each averaging 2,400 square feet. The project, designed by the internationally renowned Richard Wengle Architects, draws inspiration from the opulent Four Seasons Hotel George V in Paris. The site is less than 1 km from the TTC St. Clair West Station.

Brightstone Developments - Oakville Garden Towns Limited Partnership: The Fund also invested $1.78 million in the Oakville Garden Towns Limited Partnership with Brightstone Developments as the developer. Plans are to build a new 42-unit townhouse community at 109 Garden Drive in the highly sought after Kerr Village neighborhood of South Oakville. With a high Walk Score of 88, the site is unique in that it's in a suburban location yet maintains an urban environment within walking distance to downtown Oakville, the Oakville Waterfront, schools, parks, trails, retail shops and restaurants. The site is 4 km from the Oakville Go Train station. 

Towncorp – Greenbriar Road Limited Partnership: The Fund invested $1 million in Towncorp - Greenbriar Road LP to develop a 19-story, 204,870 square foot mid-rise condominium building. The property is in Toronto's Bayview Village neighborhood at 23 - 29 Greenbriar Road, just south of Sheppard Avenue, between Bayview Avenue and Leslie Street. The proposed development will include 249 units, a mix of one-, two- and three-bedroom units. The site is within walking distance of two TTC subway stations and the Bayview Village mall, as well as several other nearby shopping amenities. The site is approximately 2 km from the Oriole Go Train station. 

The Fund has successfully deployed capital in a diverse range of project types, from a variety of developers spread across different GTA-based markets. Having invested in these projects between 2022-2024, the Fund’s expectation is that all 6 of these projects will be completed by 2028. 

Cranson Capital is pleased to announce that preparations are now underway for the launch of a second fund in the forthcoming months. The new fund will maintain our focus on identifying and capitalizing on opportunistic and diversified real estate development projects across the GTA and Southern Ontario.

About Cranson Capital

Cranson Capital is an Exempt Market Dealer specializing in Canadian Private Equity Real Estate. The firm is dedicated to offering investors opportunities to build wealth through long-term, private investments. Cranson Capital’s portfolio includes 24 active real estate development projects with a total completion value exceeding $3 billion.

DISCLAIMERS

This press release contains forward-looking statements regarding the Cranson Capital Real Estate Development Fund (“the Fund”). These statements are based on current beliefs and various assumptions. Forward-looking statements involve inherent risks and uncertainties, and actual outcomes may differ materially. The Fund does not undertake to update any forward-looking statements, except as required by law. This release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Fund.