Northern Coast diversifies its investment portfolio with a CAD$22.7 million investment in a high-density & townhouse residential development in the GTA.
TORONTO, ONTARIO, CANADA, July 27, 2022 /EINPresswire.com/ — On behalf of Northern Coast ABL Income Fund (“NCABL”) and Northern Coast Strategic Fund (“NCSF”), Northern Coast Financial (“Northern Coast”). is pleased to announce the closing of a CAD$22.7 million investment in the Ravenscroft Residential Development Project (the “Ravenscroft Investment”), a high-density & townhouse residential development located on the corner of Taunton Road and Ravenscroft Road in the city of Ajax, Ontario, in the Greater Toronto Area (the “Ravenscroft Project”).
The Ravenscroft Investment is funded by NCABL and represents Northern Coast’s first major investment in commercial real estate and the first tranche of a commitment of up to CAD $45 million in the mezzanine debt of the Ravenscroft Project.
Under Northern Coast’s plan to transition from NCSF to NCABL, the Ravenscroft Investment will be added to NCSF’s asset base, thereby providing additional security to NCSF investors during the transition period.
“Northern Coast believes that Greenwoods’ Hart and the Ravenscroft project is strategically positioned to service the post-pandemic housing market, because residents will be able to cross Ravenscroft Road to RioCan’s Meadow Ridge Plaza for a workout at the 24h Goodlife Fitness or cross Taunton Road. to take in the nature trails and walking paths of the 700-acre Greenwood Conservation Area, without having to leave the GTA,” said Thomas Jones, Northern Coast’s President, and founder. “Northern Coast’s entry into commercial mortgages and mezzanine debt means that NCABL and NCSF investors will be exposed to a portfolio that is more diversified both in asset classes and geographic distribution”.
The Ravenscroft Project is a 4-phase development project comprised of 1,499 residential units on 24.80 acres of land. Phase 1 is set to break ground in Q3, 2022, and will offer 386 condominium units with a total gross floor area of 365,306 square feet and will be marketed under the name “Greenwoods’ Hart”.
Phase 2 of the Ravenscroft Project is approved for 313 “seniors living” units with a total gross floor area of 229,112 square feet, whereas Phase 3 is approved for 800 residential units with a total gross floor area of 684,133 square feet, and Phase 4 has. been rezoned to permit the development of 48 stacked townhomes with a gross sellable area of 49,945 square feet.
Since 2015, NCSF’s investment strategy has been primarily focused on non-bank residential mortgages. In 2021, Northern Coast announced its intent to launch NCABL to offer its investors more risk-adjusted options, more liquidity, and exposure to a more diversified portfolio.
NCABL raised CAD$22.7 million through the issuance of 22,700 Class C NCABL Units to a private investor. Class C NCABL units are subordinate to NCSF Series “A” Bonds and to all other classes of NCABL units. As of the date of this announcement, NCABL has not issued any NCABL units other than 22,700 Class C NCABL Units.
About Northern Coast
Since 2012, Northern Coast has been structuring alternative investment products that are marketed to Canadian investors under applicable prospectus exemptions (also known as the “Exempt Market”). Northern Coast uses the proceeds from the issuance of Exempt Market securities to invest in asset-backed debt, primarily mortgage-backed investments. Northern Coast launched NCSF in 2015 and plans to lunch NCABL, the Northern Coast ABL Income Fund, in Q3 2022.
Northern Coast ABL Income Fund (“NCABL”) is a mutual fund trust that is designed to be the next generation of Canadian alternative investments, also known in Canada as “Exempt Market Products”, by providing investors with exposure to a more diversified portfolio of asset-backed investments. NCABL is meant to be a “fund-of-funds” with greater liquidity, arm’s length asset management and oversight, and institutional-grade risk mitigation that allows NCABL to offer several risk-adjusted investment options. NCABL does not plan to issue additional NCABL Units until it finalizes an offering memorandum.
SOURCE: Northern Coast Financial (www.northerncoast.ca)
For further information: Thomas Jones, [email protected], toll-free (844) 483-6111 ext. 201.
Northern Coast Financial
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