Two days off the phone lines. The full Foundation Capital team in the same room for our biggest strategy session of the year. Q3 review on day one. Q4 planning on day two. Coming out of it, three things are firm, and one of them is an announcement we want you to hear first.
PV, Mit & Jeff
FCPRET at $10M. Development Towers heading to Council. Foundation Development Fund III Tranche 1 opening today to our investor community, not to the government partners we originally lined up for it. And a Q4 capital strategy you should know about.
Last Thursday and Friday, the full team took two days off the phone lines and out of the day to day for our biggest strategy session of the year. Q3 review on day one. Q4 planning on day two. Every project, every capital channel, every commitment on the calendar was on the table. This is the picture from day one.
Day one was the trustees. FCPRET results, Development Towers, and the honest look at what got done in Q3 versus what we planned in April. Day two brought the extended team in for the development side deep dive, Fund III mechanics, and the not for profit and government partnership strategy we have been quietly building.
Here is what came out of it.
FCPRET just crossed $10M in capital raised. We started the trust in 2023, in the toughest capital raising environment in a generation, on the back of 99% retail investor cheques. Thank you to every one of you who put a cheque behind the thesis before the tape had started to catch up. The macro is finally with us.
Development Fund II Tranche 1 closed fully subscribed. On the development side, the Development Towers resubmission is going in this month with refined tower heights, redesigned ground level, and a higher affordable share reflecting the government stack we are actively building underneath.
A completely new capital channel opened in Q3 that did not exist in April. We are now in active conversations with a number of not for profit and government partners about coming into our capital stack, or collaborating with us on projects, to expand the number of permanently affordable units we can produce across Southern Ontario. This is the highest leverage capital channel we have ever had access to, and Q4 is the quarter it starts converting into signed dollars.
Coming out of Q3, we could see that the capital channels we planned for in April were not the only ones that ended up mattering the most. So we are widening the Q4 approach to match. Three parallel capital channels now instead of one.
Retail investors backing FCPRET, on the same operating discipline that got us to $10M. Family office and permanent capital, which is starting to open up meaningfully this quarter. And government plus not for profit, where the Q3 conversations start becoming signed dollars.
All three run in parallel, all three flow to the same operating platform, and every one of us is working across them.
Foundation Development Fund III has been in the works for months. The launch itself is not new. What came out of the strategy session is a shift in how we open it.
Originally, we planned to open Tranche 1 exclusively to our government and not for profit partners as they came into the capital stack. Coming out of Q3 we decided the opposite. Tranche 1 opens to our accredited investor community first. Tranche 2 will be filled by the government and not for profit partners we are lining up in parallel. That way our investor community gets first look at the fund, and the public capital fills the rest.
Fund III backs the next generation of Foundation Capital developments in Southern Ontario. We have acquired another shovel ready parcel large enough to support a three tower development, on the same anti luxury, transit oriented, workforce housing thesis that has carried Development Towers.
If you are accredited and want to be at the table on the first Fund III tranche, the fastest path is to book a call with our team and we will walk you through the offering docs, the fund structure, and the projected use of capital.
Three weeks is a real deadline. Once this tranche closes, the next window opens on a different pipeline valuation.
Jeff is running the acquisition and development execution on the ground. Closing the next land assembly, continuing to build the site pipeline, and managing Development Towers through the September Council file. If you see us on a driveway with a notepad in London this quarter, that is Jeff.
Mit is continuing the conversations with our not for profit partners, government partners, family offices, and other potential capital partners who can come in as LPs alongside our investor community. We are all raising capital for the projects. Mit is the one keeping those specific partnership channels warm and moving forward.
PV is continuing to raise capital across the retail and institutional channels, running the daily letter you are reading right now, sharpening our marketing platform, and opening up new investor partnerships.
Michael is our planning lawyer and development manager. He runs the planning and entitlement process from end to end. Site plan approvals, zoning applications, council meetings, and OLT hearings on every project we have on the go. Development Towers resubmission and the September council file are his files. For context, Michael previously spearheaded the $2 billion Sheridan Mall redevelopment in Toronto, one of the largest mixed use transformations in the country, and is one of the most respected planning lawyers in Canada. That dual expertise as both senior development manager and top planning counsel in the same operator is rare, and it is the single biggest reason our applications move faster and hold up better under scrutiny than most operators of our size.
Different corners of the same platform. That is how we get FCPRET to $20M, close the first Fund III tranche, and land the Development Towers file by year end.
We are considering hosting a small investor visit to our FCPRET properties in Southern Ontario later this fall. A driving tour of a handful of the buildings, meet the operating team on site, walk through a re densification example, and share dinner after. Cost covered by the trust. Space would be limited to a small group.
If that is the kind of thing you would want in on, reply to this letter with the word Bus and we will send you details once the date is locked.
The three of us on the road from a 2023 Toronto conference booth to $10M in July 2026, the rent model evolution, the re densification math on real buildings, and the road to $20M and beyond.
$10K Minimum · RRSP / TFSA / RESP / LIRA Eligible · Also Cash
Targeted: 15% Annualized (7% cash monthly + 8% appreciation)
Our Apartment Building REIT across Southern Ontario. Just crossed $10M raised. Open to new subscribers.
$1.5M Tranche · Closing In Three Weeks
Accredited investors and existing FC investors only. Backs the next generation of Foundation Capital Southern Ontario developments.
Talk soon,
PV, Mit & Jeff
P.S. If you are accredited and want the Fund III offering docs, reply Fund III and we will get them to you within 24 hours. Three weeks is a real deadline. And if you want in on the FCPRET investor bus tour this fall, reply Bus.
