CETANA PROOF - Flipbook - Page 56
FORWARD
STATE OF
THE MARKET
THE NEW KID
ON THE BLOCK
THE PROJECT
OVERCOMING
CHALLENGES
CHALLENGE:
Conventional
Design
SOLUTION:
Choose the
Right Team
CHALLENGE:
Attracting
Investors
SOLUTION:
Building
Confidence
CHALLENGE:
Real Estate
Acquisition
SOLUTION:
Resident
Engagement
CHALLENGE:
Competitive
Industry
SOLUTION:
Building
Legitimacy
CHALLENGE:
Community
Support
SOLUTION:
Local Leadership
& Influencers
CONCLUSION
ACKNOWLEDGEMENTS
at all of these costs together, property developers have a
better understanding of the long-term financial implications
of their investment decisions. One of the main challenges with
sustainable property development in Ontario is the perceived
cost premiums associated with incorporating sustainable
features into building design and construction. The cost of
adopting renewable energy systems, energy-efficient building
materials, and sustainable technologies can be more costly
upfront, requiring a payback strategy from operational efficiency
savings to justify the expense.
Sustainability is Perceived as Risky:
Sustainable property development can be limited by a lack
of access to financing. Banks and financial institutions can
be reluctant to invest in projects that incorporate new and
sometimes untested technologies, making it difficult and
potentially more expensive for developers to secure funding.
Choosing the Right Project Financing Structure:
The Real Estate sector in Ontario has a number of proven
investment models, including: Equity or debt investments; Buildto-sell or rent; joint venture; and mutual fund trusts to name a few.
Navigating the best investment structure can be a daunting task
for any new developer. The outcome will depend upon a number
of factors, such as the developer’s financial collateral, their goals
and objectives, and the size and complexity of the project.
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