Parkit Enterprise contributes 3.55 acres to Ontario JV

Executive Summary

• Parkit Enterprise Inc. has formed a three-party joint venture, 760 Second Street Partnership, to redevelop an industrial property in London, Ontario, into a residential complex.
• Parkit contributed the 3.55-acre site valued at $12.9 million, retaining a 50% ownership stake in the venture, while Decade Capital and Southside Group each hold 25%.
• The project involves rezoning from industrial to residential, with municipal approval and building permits already secured for the first phase, which includes a 250-unit building scheduled for construction in Q4 2025.

Key Details

• Transaction Structure: Parkit contributed land at 568 Second St., London, Ont., to the joint venture for a total contribution value of $12.9 million (subject to customary adjustments).
• Ownership Split: Parkit Enterprise Inc. (50%), Decade Capital (25%), Southside Group (25%).
• Tax Strategy: Parkit utilized a tax-free rollover to defer initial tax liabilities on the contribution.
• Property Details: The site comprises 3.55 acres, previously zoned industrial, successfully rezoned for residential use.
• Development Plan: Two 15-storey purpose-built rental buildings totaling 543 units with an estimated gross floor area of 487,151 square feet.
• Phase 1 Specifics:
  • Municipal approval and building permits obtained (demolition, foundation, architectural shell).
  • First building will comprise 250 units.
  • Estimated gross floor area for Phase 1: 234,071 square feet.
  • Construction start date: Q4 2025.
• Strategic Context: The development leverages the site's location across from Fanshawe College (43,000+ students) and London's new rapid-transit corridor along Oxford Street.
• Partner Profiles:
  • Decade Capital: Toronto- and London-based real estate investment and development firm.
  • Southside Group: London-based diversified real estate development, construction, and property management company established in 1979.

Notable Quotes

• "568 Second St. represents a strong opportunity to convert an industrial asset into much-needed rental housing in a growing market. We are excited to partner with Decade Capital and Southside Group -- groups that have a strong track record of delivering high-quality developments." — Steven Scott, Chairman of Parkit