Ground broken on $750M major purpose-built housing project in Scarborough

The Canada Mortgage and Housing Corporation (CMHC) announced it is supporting the construction of 1,285 new rental homes, situated on a 3.4-acre parcel of land on the west side of Oxford Properties Group’s Scarborough Town Centre (STC) shopping mall, with an investment of over $650 million through the Apartment Construction Loan Program (ACLP).

Scarborough’s first major purpose-built rental development in over a generation, which will be named Alta, will consist of three 45, 35, and 41-storey residential towers made up of 1,285 purpose-built rental units, 268 of which are affordable, with the aim of delivering critically needed housing in a historically undersupplied area for people at a variety of different price points. The project is the largest single-phase rental development currently under construction in Toronto.

“Our government is committed to driving housing supply to bring down costs. This project will create more rental homes for people living and working in Scarborough and is an example of what’s possible when we work together in partnership with the private sector. This is another step forward in our bold, ambitious plan to build Canada strong,” said Gregor Robertson, Minister of Housing and Infrastructure.

The financing provided by CMHC allows Oxford to accelerate its plan to intensify the lands around STC to help address the housing crisis faced by the City of Toronto by adding a significant source of new purpose-built rental supply, as well as a substantial delivery of affordable units, into the Scarborough community.

“Breaking ground on this rental project is a true milestone for Oxford as we look to use our proven development expertise to deliver much-needed housing solutions for the people of Scarborough, while sustainably intensifying transit-connected land to create mixed-use communities of the future,” said Daniel Fournier, executive chair at Oxford Properties, the global real estate arm of OMERS. “This generational project signifies a model we hope to replicate across Canada in the years to come, and with CMHC as a funding partner, we’re confident it will serve as a prime example of the power of public-private partnerships to work together to address the housing challenges in Canada’s largest cities.”

The entire project is being designed to promote wellbeing and community building through the inclusion of extensive indoor and outdoor amenities. These include outdoor lounge areas, co-working spaces, a children’s playroom, fitness facilities, and a new 22,000 square foot public park at the south end of the development. The completed project seeks to reduce its environmental impact by using a geothermal heating and cooling system that will reduce overall energy use by 55 per cent and greenhouse gas emissions by 74 per cent.

“We are building more affordable homes to address the housing crisis. The project at 25 Borough Drive will create 1,285 new homes for Torontonians, including studios, one-bedroom, two-bedroom and three-bedroom apartments and townhomes. The City of Toronto is proud to support this project through the Rental Housing Supply Program. We are stronger together, working with the Government of Canada to create more affordable homes in Scarborough to meet the needs of our growing city,” said Olivia Chow, Mayor of Toronto.

Alta marks the first development within Oxford’s recently approved master plan for STC. The multi-decade plan envisions over 10,000 residential units built across 89 developable acres to support Scarborough in its evolution and growth as an urban hub, while optimizing STC’s relationship to the new transit station. This master plan builds on Oxford’s continued conviction to create premier mixed-use communities across Canada.

“It is more important than ever that governments at all levels in Canada come together with the private sector to make bold choices that improve Canadian communities, and this project is the perfect example,” said Blake Hutcheson, President and CEO of OMERS. “This development not only puts our members’ dollars to work right here in Ontario, but it does so in a project that is being supported by federal funding which in turn will help maximize the Province and City of Toronto’s substantial investment in rapid transit to Scarborough. It will help deliver returns for our members, while also improving housing choice in a community that so many of them proudly call home and serve.”

Construction on Alta is expected to be completed by Summer 2029.

Featured image: (Oxford Properties Group)