18:27:27 EDT Mon 17 Jun 2024
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Altus Group Ltd
Symbol AIF
Shares Issued 45,998,262
Close 2024-03-14 C$ 51.11
Market Cap C$ 2,350,971,171
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FP says Altus sees developers struggling as costs rise

2024-03-14 07:22 ET - In the News

The Financial Post reports in its Thursday edition that the construction site at Yonge and Bloor in Toronto where The One, an 85-storey mixed-use development is slowly taking shape, looks just like any other, albeit on a grander scale. The Post's Shantaé Campbell writes that behind the scenes, however, it has been anything but business as usual. The project, launched by developer Sam Mizrahi and partner Jenny Coco nine years ago, was forced into receivership in October after a key lender grew impatient with delays, rising debt and ballooning costs. Last month, Mr. Mizrahi's firm was removed as construction manager. While The One's struggles are drawing attention due to its $2-billion price tag, it is not alone. Facing a dangerous combination of higher interest rates and rising construction costs, an increasing number of residential construction projects have been forced into receivership over the past 12 months. "Receiverships are probably going to continue to be an issue for developers this year because of the elevated interest rates," said Marlon Bray at Altus Group. Higher rates, he said, can deal a double blow to developers, eroding demand for units while driving up financing costs, especially when delays hit.

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