Lenders in a syndicate mortgage that funded Brant Park, a condominium apartment project in downtown Toronto by Lamb Development Corp. (Lamb) and Fortress Real Developments Inc. (Fortress), received their principal back in full, as well as an estimated annualized return of 8.12 per cent, announced Building and Development Mortgages Canada Inc. (BDMC).

The completion of construction and registration of Brant Park marks the twenty-first exit for syndicate lenders who have funded Fortress projects. To date, over $100 million of principal has been repaid to lenders, and the average estimated annualized returns in the 21 completed projects is 9.3 per cent. These exits have come following various stages: completion of construction, sale of lands and refinancing of the development site included among them.

“The $100 million paid back to lenders is a major milestone in our industry,” said Ildina Galati, BDMC principal broker, in a press release. “This year alone we have exited five development projects and this is a testament to the borrowers we work with, their experience, the strong due diligence they do in terms of understanding the market and the value they create for all stakeholders involved in the projects.”

“We are very pleased with returns our lenders have achieved through this structure,” added Glenn May-Anderson, Principal Broker at FDS Broker Services, a representative of several Brant Park lenders. “This milestone shows that the age old method of lending through a syndicate is a great way to invest in real estate.”

BDMC has closed over 14,000 lenders into syndicate mortgages in 80 projects across the country, ranging from high-rise residential to condo commercial projects, offering varying tenures and built forms to choose from. Through BDMC, over $885 million has been funded into development projects to date, with projects having a built out value of $6 billion.