Oxford Properties Group has secured a record $650-million Canada Mortgage and Housing Corporation loan for a massive purpose-built Toronto rental-housing development project that broke ground Tuesday.

The loan is the largest in Toronto under CMHC’s Apartment Construction Loan Program and will cover the majority of the $750-million project’s cost. The project is located in the city’s Scarborough area.

“Breaking ground on this rental project is a true milestone for Oxford as we look to use our proven development expertise to deliver much-needed housing solutions for the people of Scarborough, while sustainably intensifying transit-connected land to create mixed-use communities of the future,” said Daniel Fournier, Oxford’s CEO and executive chair. “This generational project signifies a model we hope to replicate across Canada in the years to come, and with CMHC as a funding partner, we’re confident it will serve as a prime example of the power of public-private partnerships to work together to address the housing challenges in Canada’s largest cities.”

The development is the first of its kind in the area in more than a generation, according to Oxford. The three-tower project, called Alta, will rise on a 3.4-acre site beside Scarborough Town Centre and deliver 1,285 multi-family rental units, including 268 affordable homes. It is the largest single-phase purpose-built rental development currently under construction in Toronto.

“Our government is committed to driving housing supply to bring down costs,” said federal Housing Minister Gregor Robertson. “This project will create more rental homes for people living and working in Scarborough and is an example of what’s possible when we work together in partnership with the private sector. This is another step forward in our bold, ambitious plan to build Canada strong.”

Alta is designed to accommodate a mix of income levels and family structures, offering 51 studios, 693 one-bedroom, 411 two-bedroom, and 130 three-bedroom apartments, including 23 townhomes. The development will include residential and retail space across two seven-storey podiums and benefit from proximity to the Scarborough Centre TTC station, GO Transit and the future Scarborough Subway Extension.

Planned amenities include co-working areas, fitness facilities, a children’s playroom, outdoor lounges, and a new 22,000-square-foot public park. The project will incorporate a geothermal heating and cooling system expected to cut energy use by 55% and greenhouse- gas emissions by 74%.

The City of Toronto is supporting the project through its Rental Housing Supply Program, said Mayor Olivia Chow.

Alta is the first phase of Oxford’s newly approved master plan for the Scarborough Town Centre area, which envisions over 10,000 residential units across 89 acres.

Oxford is the real estate arm of pension-fund manager OMERS, which ranks among Canada’s largest institutional investors.

“It is more important than ever that governments at all levels in Canada come together with the private sector to make bold choices that improve Canadian communities, and this project is the perfect example,” said Blake Hutcheson, president and CEO of OMERS. “This development not only puts our members’ dollars to work right here in Ontario, but it does so in a project that is being supported by federal funding which in turn will help maximize the Province and City of Toronto’s substantial investment in rapid transit to Scarborough. It will help deliver returns for our members, while also improving housing choice in a community that so many of them proudly call home and serve.”

Alta’s construction is expected to be completed by summer 2029.

Pictured: Oxford executives and dignitaries participate in a groundbreaking ceremony Tuesday.

Photo: Oxford Properties Group