"“Our strategy is to buy it, rent it and then resell the units back into the market,” said O'Brien. “We're not pretending to be the affordability saviour, but I think strategies like this are going to help stabilize the market,” he said, noting that 10 of the units the group bought in its first acquisition were already rented out."
"“I don't see anything negative about the approach, because it will serve as a catalyst to drive market growth,” O'Brien said. “The anticipated supply of new condos is going to fall off a cliff because no one is building new product today,” he said, noting that would drive pricing back up and create a more stable market."
"Jesta Group announced its entry into the Toronto housing market when it acquired a bulk condominium portfolio valued at $30 million located near Toronto Metropolitan University. It now aims to spend nearly 17 times that amount to acquire 1,000 unsold condo units over the next year, according to the firm's news release."
"CBC News asked Jesta Group what would happen to renters when the firm decides to sell the condos back into the market, but it has not provided a response yet."
A Montreal-based private equity firm plans to purchase $500 million worth of unsold condo units and convert them into rentals to help stabilize the housing market. Jesta Group, a family-owned real estate firm, entered the Toronto market by acquiring a bulk condominium portfolio valued at $30 million near Toronto Metropolitan University. The firm aims to spend nearly 17 times that amount to acquire 1,000 unsold condo units over the next year. The strategy is to buy units, rent them, and then resell them back into the market. The firm expects new condo supply to decline sharply because fewer projects are being built, which could support more stable pricing. The firm expects to benefit from investments in about three to five years.
Read at www.cbc.ca
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