London developer unveils design of Old South rental highrise amidst housing downturn

With more on the potential impact of the project in one of London’s most historic neighbourhoods, here’s CTV’s Sean Irvine.

A large London developer has doubled down on building as housing starts in some areas of Ontario weaken.

Tricar Group has unveiled the design of an 18-storey rental highrise on Ridout Street in Old South.

The 168-unit structure, known as ‘The Mayfair,’ in a tip of the hat to London, England, is expected to be completed in 2027.

“This will certainly cater to professionals. It’ll certainly cater to empty nesters and retirees,” said Adam Carpella, the vice-president of Tricar Group.

The project is among the first built by the firm that will benefit from the federal HST exemption on rental projects.

According to Carapella, the benefit greatly improved the feasibility of the $80-million project.

“Three to four percent, that’s going to help with, but every percentage point matters when you’re talking about a large project like this and the amount of risk being undertaken.”

The loss of tax dollars is worth it, according to Liberal MP Peter Fragiskatos. He is focused on bringing 168 new rental units to the city.

“We have demand that’s out there, but we don’t have enough supply. So, by building more homes we will get down costs in the area of rent.”

While the project coincides with a housing slump in some centres, including London, Carapella is confident in the regional market.

“I think London, southwestern Ontario in general, obviously, the market isn’t as high as it was, but I know, I do not feel we’re feeling the same effects as somewhere, like a Toronto or Vancouver would be.”

London Mayor Josh Morgan said the project exemplifies the city’s strategy for growth.

“We can build really high-quality projects, right here in desirable locations in our city and create some infill and densification in parts of the city where we really need it,” said Morgan.

Still, modern buildings in the heart of Old South haven’t always been welcomed by the neighbourhood.

Yet this time it’s different, said Ward 11 Coun. Skylar Franke, who represents Old South.

“I think many people are just happy to see something going up again. It’s, you know, kind of been an empty spot for a couple of years, so people are excited to see progress,” she added.

The building design, featuring nods to the past, is also welcome, according to Franke.

“I think it’s a really nice way of taking the red brick townhouses and making that look really pleasing and inviting. If it were just poured concrete with no windows, that would have a different feeling in the neighbourhood. But this will look good, I think.”