The PHD LEIT® fund blends the land equity component with investment in urban renewal projects. The Growth Plan for the Greater Golden Horseshoe area [link to Geographic Focus page]—the Province of Ontario’s expansion plan for the Toronto region adopted in 2006—requires municipalities to promote growth by first looking inward to already-urbanized areas before pursuing greenfield development. New development brings desirable and much-needed change to urban communities that also fits in well with corporate social responsibility initiatives. TSI’s strategy is to acquire underutilized property in targeted areas that present opportunities for renewal and increased valuations.
“By the year 2015 and for each year thereafter, a minimum of 40% of all residential development occurring annually within each upper- and single-tier municipality will be within the built-up area.”
-- Ontario government (2006)
Land equity remains a core component of these products, representing a base of from 40 to 60 percent, with the remainder invested in urban renewal ventures.
The fund minimum amount is typically CAD $10 million.