The Toronto-based duo of Dream Unlimited (TSX: DRM) and CentreCourt Developments are renewing their long-running relationship, forming a new joint venture to embark on a project that is expected to begin construction as early as this year.
The project is set for 49 Ontario Street, which is currently occupied by a seven-storey office building between Adelaide Street East and Berkeley Street. An application for the site was submitted in 2021 by Dream Impact Trust (TSX: MPCT.UN) through MPCT 49 Ontario Street Toronto Inc. before a new application was submitted earlier this year after adjacent properties along Berkeley Street were acquired and folded in to the project.
The application for 49 Ontario Street and 72-94 Berkeley Street now calls for a 45-storey tower and a 49-storey tower with a total of 1,227 residential units (including 245 affordable units), a bit under 7,000 sq. ft of retail space, the retention of the heritage row houses at 72-78 Berkeley Street, and a public park along Berkeley Street.
In its Q1 2025 report, Dream Impact Trust said that it had entered into an agreement to sell a 10% minority stake in the 49 Ontario project, but did not disclose the partner other than to say that the company is "an experienced condominium developer which will work with the Trust to attract further investors to reduce the Trust's ownership stake." It also said that it had secured a development charges waiver from the City of Toronto in 2024 as well as $647.6 million in construction financing for the project. The loan was obtained through the CMHC's Apartment Construction Loan Program, as the CMHC and City of Toronto announced in March.
In the Q1 2025 report of Dream Unlimited, the company — which owns a 37% stake in Dream Impact Trust — said that Dream Impact Trust had also entered into a development agreement with Dream Unlimited and the new partner who will manage the project, which was revealed this week to be CentreCourt. CentreCourt will be serving as co-developer and construction manager of the 49 Ontario project and is also working with Dream on the Golden Mile master-planned community in Scarborough.
"Dream and CentreCourt have a 14-year history of successfully delivering landmark condominium communities together," said the two companies in a joint press release. "While both organizations have deep expertise across the real estate spectrum, this joint venture represents a significant step in expanding their collaboration into purpose-built rental."
"CentreCourt is recognized for its industry-leading ability to finance, design, and self-perform construction at unmatched speed and efficiency, delivering high build-quality along with exceptional returns on 19 projects totalling over 10,000 homes and $5.6 billion in development value," they added. "Dream brings a deep track record in purpose-built rental and unparalleled expertise in structuring and executing public-private partnerships, having developed or currently developing over 4,500 rental units worth over $2 billion upon full build-out."
In its Q2 2025 report, Dream Impact Trust said that it expects construction on the 49 Ontario project to commence by the end of the year and that the project will have 1,226 units, split between 960 market rental units and 266 affordable rental units (totals slightly different from the City of Toronto application). Initial occupancy is expected in 2028.
On August 12, Dream Impact Trust also published a general business update on its liquidity, development, and strategic initiatives, saying that it started the year with almost $350 million in land loans and that it expects to reduce that total by $140 million because the loans have "put a strain on our cash flow and liquidity."
"In 2026, we will continue to seek opportunities to reduce the land loans further, said the Trust. "As part of our plan to continue to increase liquidity for the Trust, over the next five-year planning period, the Trust intends to sell most of its commercial assets, realize cash from its passive investments and sell select apartment buildings as we improve the value and quality of the portfolio concentrated on the best new purpose-built rental buildings."
"Consistent with this goal, the Trust is in advanced discussions with a number of parties to provide a loan facility which will help with liquidity during this period," they added. "Our plan does not include starting any new condominium buildings other than the ones we currently have underway with pre-sales – Forma and Bridge House at Brightwater, which is set to commence construction shortly. If the condo market becomes more favourable and we can start new buildings at attractive returns, that will be an improvement to our plan."
