In this week’s Canadian real estate news, we delve into the impact of rising interest rates on commercial property-sharing startup, Willow LP. Additionally, we explore the troubles faced by Toronto-area condominium developer, Vandyk Properties, and the increasing value of Canadian farmland attracting non-farmer investors. Lastly, we highlight a stunning property in Toronto’s Beaches neighborhood. Read on for all the details.

Willow LP, a commercial property-sharing startup, has recently been hit by the adverse effects of rising interest rates. The company, which operates within the fractional investing or prop sharing trend, allows individual investors to purchase portions of commercial properties. Unfortunately, the value of these investments has declined significantly, ranging between 50 and 60 percent. Such a decline can be attributed to the higher borrowing costs incurred by Willow LP due to the prevailing interest rate environment.

Vandyk Properties, a prominent condominium developer in the Toronto area, is currently facing a myriad of legal and financial challenges. The company has had receivers appointed for five building projects as a result of delayed orders. Two companies are claiming a total of $186.4 million in outstanding payments from Vandyk Properties. These projects represent 1,757 unbuilt homes, of which at least 830 are conditionally sold. Moreover, the developer has witnessed executive resignations, further adding to their troubles.

Read Full Story Here: https://www.theglobeandmail.com/business/article-real-estate-housing-news-january-13/