A multi-billion-dollar property developer is investing in Barrie to capitalize on its projected population growth.
Last week, SkyDev, a subsidiary of the Skyline Group of Companies, began work on a $300 million project to build two apartment towers on the site of the former YMCA on Grove St. West. The construction is expected to be completed by early 2027. The company also plans to build two other buildings on the site, one with 29 storeys and another with nine.
“We’re going to be pouring about 1,000 cubic metres of concrete each day,” says Greg Jones, the president of SkyDev, a subsidiary of the Skyline Group of Companies. “A lot of those construction materials will be purchased locally.”
Skyline specializes in developing, acquiring and managing Canadian rental properties. These properties also form the portfolios of its real estate investment trusts, which have assets under management valued at about $8.23 billion.
The move comes as vacancy rates in Barrie sit at about 2.7 per cent, somewhat higher than the 1.7 per cent average seen across the province. Together, the two new buildings will add about 928 one- and two-bedroom apartments to the city’s existing rental stock.
Despite the slightly higher than average vacancy rate, Jones says there is a clear investment case for building rental units in Barrie. According to the city’s projections, its population is expected to grow from about 164,500 in 2024 to 298,000 in 2051. This dramatic rise is expected to push up property values — as well as rental prices.
“Barrie is the tenth-fastest growing city in Canada and the fifth-fastest in Ontario,” Jones says. “That’s a very good sign for property managers. . . . When the buildings open, we’ll be renting out most of the units at prices determined by the market.”
Auspicious conditions are not the only thing that has drawn Skyline to the city. Jones says its forward-thinking members-of-council also played an important part in securing the deal. “I’ve seen other cities raise [fees] while interest rates are high. In Barrie, the city held a round-table with developers to find out how they could encourage more building — and then, they actually listened to us.”
Among the ways the city was able to help seal the deal was its decision to purchase 32 units for $6.7 million which will be used for affordable housing.
