Paris, Wednesday 6 May 2020, 5:45 p.m. CET

BUSINESS ACTIVITY IN Q1 2020

IMPLICATIONS OF THE PUBLIC-HEALTH CRISIS (COVID-19)

OUTLOOK1

Alain Dinin, Nexitys Chairman and CEO, commented:

After a good start to the year in line with the performance achieved in 2019, Nexity like all other companies was impacted by the coronavirus crisis and the dramatic lockdown measures implemented from March onwards.

This unprecedented crisis is first and foremost a human tragedy, and it has hit our Group directly with the loss of Jean-Philippe Ruggieri, Nexitys Chief Executive Officer, who passed away as a result of the coronavirus, on 23 April.

Nexity has been playing a prominent role in the wave of support for victims of this pandemic and caregivers. In addition to the fantastic initiatives carried out by the Nexity Foundation and the support shown by our own employees, I decided in conjunction with the Board of Directors that we should make an exceptional donation of 3 million to the healthcare staff in the Seine-Saint-Denis and Grand-Est regions, in addition to helping homeless people and disadvantaged women. In this context, I also asked for a 25% reduction in my compensation as Chairman of the Board of Directors and will not receive any remuneration for my term of office as Chief Executive Officers, which I have held since 25 April 2020.

Its also a one-of-a-kind economic crisis, which is significantly impacting supply and demand, and the mark that it leaves will run deep. Nexity estimates that a 15-day lockdown represents almost 130 million in lost revenue.

Its important to keep a level head as we deal with this crisis: while our development activities are severely affected in the short term (as worksites have been brought to a virtual standstill and a return to normal conditions is expected to take several months), we are not worried about getting back to a satisfactory level of activity after the crisis. The demand for residential housing, which is driven by demographic factors and a structural supply deficit, will not disappear: it will be pushed back. And even if some of our individual clients may no longer have a sufficient level of solvency, I am confident that institutional investors will pick up the baton. The resilience of our service businesses also confirms the pertinence of our business model.

At Nexity, we are lucky to be in a business that meets the basic needs of the population. Our business model and our financial position mean that we can be more resilient than many other companies. Nexitys strategy is simple: manage the crisis our number one priority being the health of our employees, customers and residents, and all of our stakeholders and minimize the negative impact on our results; actively organise ourselves for the upturn; prepare to make the most of opportunities that may arise in the future, even if the future is uncertain and subject to change. To get through this difficult period, the Board of Directors decided to entrust me once again with the role of the Companys Chairman and Chief Executive Officer. While I am particularly affected by the circumstances that led to this change, I take on this role with a complete sense of commitment and determination to implement this strategy with the support of the executive management team.

***

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IMPLICATIONS OF THE PUBLIC-HEALTH CRISIS (COVID-19)

Following strong business momentum at the start of 2020, in line with that of the previous year, since 16 March 2020, Nexity has seen a strong negative impact on business activity due to the government-imposed lockdown measures currently in effect in France, with various specific developments for each business line, as presented below.

Business activity

Residential Real Estate

Since 16 March 2020, business has slowed sharply due to lockdown measures limiting the possibility of clients to reserve new homes and sign notarial deeds of sale; however, after a few weeks at a virtual standstill, construction projects are gradually getting underway again. At 30 April 2020, just over 50% of Nexitys 556 residential construction sites had been reopened and all of them should restart by the beginning of June. However, these construction sites are operating at reduced capacity (around half of their capacity) given the constraints linked to the lockdown and additional health precautions.

Regarding the renewal of the offering, the situation is mixed. For the 30,000 municipalities that elected their mayors in the first round of the elections, new administrative authorisations continue but at a reduced pace in view of the lockdown period. For the other municipalities, the postponement of the second round of local elections will delay building permits as well as the commercial launch of new projects. In addition, due to the public-health emergency, deadlines for appeals have been extended, thereby delaying the allocation of definitive permits.

During the lockdown period, Nexity maintained many customer contacts with its individual customers, albeit to a lesser extent than under normal circumstances, which in turn led to a net positive balance of reservations for April (reservations for the period net of cancellations). In addition, announcements published by institutional investors (CDC Habitat and inli) regarding the launch of a massive housing acquisition programme (50,000 units) will boost business activity. In this context, Nexity and CDC Habitat signed a firm commitment at end-April for the sale of 7,450 units representing 1,234 million excluding VAT. Half of these social, intermediate and conventional housing units located all over France are expected to be sold before end-December 2020.

Real Estate Services to Individuals

Property Management for Individuals

The public-health crisis has not had a significant impact on Property Management for Individuals, which is very resilient: the ordinances passed on 25 March 2020 have made it possible to postpone annual meetings of condominium property owners until after the lockdown, thus ensuring continuity and guaranteeing the proper management of condominiums.

Brokerage activities (lettings and sales by Nexity agencies and Century 21 franchises) have been affected by the lockdown measures and have virtually been at a standstill since 16 March 2020.

Serviced residences

Student residences (Studa) saw a number of students leave their residences at the beginning of the lockdown period. However, the impact on revenue is gradual, given the notice period. The occupancy rate should start recovering this summer, as students courses will restart on 1 September 2020.

For senior independent living facilities, Domitys has implemented stringent health precautions since 15 March to protect its residents and employees, resulting in a very limited Covid-19 infection rate at this stage, given the circumstances, and ensuring robust continuity of operations. The occupancy rate of residences that have been open for more than 2 years was only slightly affected. Residences that have been open for less than 2 years will have their occupancy period extended. A number of new residences initially planned to open in 2020 have been postponed to financial year 2021.

Distribution activities

Distribution activities have been affected, with a significantly lower volume of reservations since the start of the governments lockdown measures.

Commercial Real Estate

Commercial Real Estate business has slowed significantly since the start of the public-health crisis due to the extension of deadlines for obtaining building permits and the halting of construction work. Despite this context, projects are continuing, such as the sale of the Influence 2.0 building in Saint-Ouen (Seine-Saint-Denis) on 16 April, occupied by the Rgion le-de-France for over 200 million (acquired by BNPP Reim), achieved with the conditions and within the timetable set before the crisis. In addition, lockdown measures do not threaten the prospects of obtaining administrative authorizations for the operation of the eco-business park in La Garenne-Colombes (Hauts-de-Seine) this year, which has been under option since the fourth quarter of 2019, and is still expected to be sold at the end of 2020.

Real Estate Services to Companies

The coworking business, which was forced to close all its workspaces since 16 March 2020, has been affected with activity virtually at a standstill since 16 March 2020. Leases remain in effect and are subject to discussions regarding payment procedures.

. Conversely, the Property Management for Companies business was only slightly affected.

Financial aspects

Sensitivity of the income statement

The impact of the lockdown mainly results in revenue being pushed back to subsequent periods.

Given the cost structure of the Groups business activities, this revenue postponement has a differentiated impact on the Groups EBITDA.

In development and distribution activities, the lack of technical and commercial progress during the lockdown period will result in a significant decrease in revenue. However, in these businesses, costs are largely variable and fixed charges represent less than 10% of the cost price of operations; the decrease in revenue will have a limited impact on EBITDA (although an additional negative impact can be anticipated from losses on overhead expenses not included in inventories during the shutdown period, and from an increase in construction costs due to the additional costs of restarting work).

As for property management for individuals, serviced residences and shared office space activities, which have higher fixed costs, the negative impact on EBITDA resulting from the decrease in revenue will be far more significant. However, the resilience of property management for individuals has significantly limited the drop in revenue (around 70% of the property management for individuals business is unaffected by the lockdown). However, activity is impacted by the absence of transactions, finding tenants and fees paid on construction works which cannot be approved without convening a co-owners meeting.Measures taken to furlough staff and plans to cut operating expenses should also help limit this impact by more effectively controlling fixed costs.

Financial position

The Groups cash position remains very strong, with 722 million in total cash at 30 April 2020, plus 555million in confirmed credit lines not drawn down.

As a precautionary measure, and in anticipation of the impact of the public-health crisis on its EBITDA, Nexity has secured exemption from its requirement to abide by a limit on the leverage ratio until the closing of the financial statements for the 2021 financial year. A written consultation with Euro PP bondholders is underway to obtain the same exemption from the limit on the leverage ratio.

Outlook

At this stage, it remains very difficult to evaluate the effects of the Covid-19 crisis and the lockdown measures imposed by the Government on 16March2020 and currently extended until 11May2020. There continues to be great uncertainty as to how economic activity will resume in France.

The Group is confident in the resilience of its main business lines. The current public-health crisis will nevertheless have a marked impact on its activities, revenue and results, an impact that cannot yet be determined at this stage.

Nexitys civic engagement

France is facing a public-health crisis of unprecedented scale and complexity, with many uncertainties surrounding the path to economic recovery. In this unique context, the Board of Directors, the management team and all of the Groups employees have implemented a number of measures reaffirming Nexitys commitment to society, among which:

BUSINESS ACTIVITY IN Q1 2020

INDIVIDUAL CLIENTS

Residential Real Estate

At end-March 2020, net new home reservations in France totalled 3,657 units for 792 million including VAT, down 6% by volume and up 2% by value with respect to end-March 2019. After including subdivisions (360 units), international sales (165 reservations), business activity for Residential Real Estate (4,182 units reserved, for 847 million including VAT) remained stable in volume and grew 6% by value. The Covid-19 related health-crisis had a limited impact on Q1 2020 reservations.

The average level of pre-selling booked at the start of construction work was very high (90% at end-March 2020). The supply of homes for sale dropped back 12% from its end-December 2019 level to stand at 7,799 units at end-March 2020, due to a particularly swift average take-up period of 4.3 months3 (compared with 4.9 months in Q1 2019) and few new sales launches. Unsold completed stock (78 units) as a proportion of the total supply for sale remained very low.

At end-March 2020, the business potential for new homes4 rose 2% from end-2019 to 56,251 units, i.e. 2.6 years of development operations. This represented potential revenue of 10.9 billion excluding VAT. Including subdivisions and international operations, the business potential of Residential Real Estate represents 12.3 billion in potential revenue excluding VAT. This strong potential means that the Nexity has the capacity to recover when economic conditions improve.

Real Estate Services to Individuals

Property Management for Individuals

In Property Management for Individuals, excluding Franchises (condominium management, rental management, lettings and brokerage), the portfolio of units under management totalled over 885,000 units at 31 March 2020, stable relative to end-December 20195.

Serviced residences

Nexity Studa had 124 student residences under management at 31 March 2020, totalling more than 15,000 units. The rolling 12-month occupancy rate was 95% at end-March 2020 (stable relative to end-December 2019).

The Domitys-branded senior independent living facilities business posted growth. 4 new residences have been opened since the beginning of the year, increasing its portfolio of serviced residences to 104, corresponding to over 12,000 residential units (of which 72 residences opened more than two years ago). At end-March 2020, the rolling 12-month occupancy rate was 84% (stable relative to end-December 2019). Residences opened more than two years ago posted a 95% occupancy rate at end-March 2020.

Distribution activities

iSelection and PERL recorded 1,022 reservations in the first quarter of 2020 (up 3% compared with Q1 2019). More than half of these reservations were homes distributed on behalf of third-party developers or through the division of ownership of existing property, with the rest made up of homes produced by the Group.

COMMERCIAL CLIENTS NEXITY ENTERPRISE SOLUTIONS

Commercial Real Estate

Business activity was not significant in the first quarter of 2020 (3 million excluding VAT in new orders) but exceeded 200 million at 30 April 2020 with the sale of the Saint-Ouen Htel de Rgion (regional council premises, Seine-Saint-Denis)6.

Business potential in Commercial Real Estate7 totalled nearly 3.0 billion at end-March 2020 (remaining stable since end-2019). This includes the La Garenne-Colombes project, which is expected to be signed by the end of 2020.

Real Estate Services to Companies

The volume of floor area under management totalled 19.4 million sq.m at end-March 2020.

At end-March 2020, Morning Coworking a leading player in the Paris coworking space market operated 21 coworking spaces totalling more than 50,000 sq.m and corresponding to around 6,000 workstations. During the first quarter, a lease was signed for the repurposing of the Htel de la Marine on Place de la Concorde in Paris (645 workstations).

BACKLOG AND BUSINESS POTENTIAL AT 31 MARCH 2020

The Groups backlog at end-March 2020 stood at 5,194 million (4,796 million for Residential Real Estate and 398 million for Commercial Real Estate), equivalent to 19 months revenue from Nexitys development activities (revenue on a rolling 12-month basis). The backlog increased by 2% since 31 December 2019.

Furthermore, the development business potential at end-March 2020 totalled over 15 billion in revenue (12 billion for Residential Real Estate and 3 billion for Commercial Real Estate) providing the Group with high visibility on its future business levels.

REVENUE8

Revenue for the first quarter of 2020 was 787 million, down 94 million or 11% compared to Q1 2019. The negative impact related to the slowdown of activities observed since 16 March 2020 is estimated at around 130 million, representing the equivalent of 14% of the revenue recorded for the previous year, most of which will be carried forward to the following quarters. Excluding the negative impact of the public-health crisis, revenue would have risen by 4%.

* Revenue generated by Residential Real Estate and Commercial Real Estate from VEFA off-plan sales and CPI development contracts is recognised using the percentage-of-completion method, i.e. on the basis of notarised sales and pro-rated to reflect the progress of inventoriable costs.

The Residential Real Estate division recorded a decrease in revenue of 62 million, representing a decrease of 11% relative to Q1 2019. Excluding the negative impact of the public-health crisis (approximately 110 million of business activity carried over from the last 15 days of March 2020 to the following quarters), Residential Real Estate revenue would have risen by 8%.

Real Estate Services to Individuals posted revenue of 211 million for the quarter ended 31 March 2020.

Revenue from Property Management for Individuals and franchises was down 6% relative to Q1 2019. This change mainly resulted from the sale of Guy Hoquet lImmobilier in Q2 2019 and from the impact of the public-health crisis.

Revenue from Distribution activities was down 9% relative to Q1 2019. Excluding the negative impact of the public-health crisis (approximately 14 million), revenue would have risen by 20%.

Revenue from Serviced residences grew by 17% in Q1 2020 and reflects the growth in managed residences.

The decrease in revenue from Commercial Real Estate (down 42%) is the result of a high comparison base and volatility effects that are standard in this business, given the advanced stages of the various projects. The negative impact of the public-health crisis is estimated at around 6 million.

Revenue from Real Estate Services to Companies amounted to 27 million (up 6.5 million), mainly driven by the increase in revenue from Morning Coworking (up 5 million), which is double the revenue recorded in Q1 2019.

Revenue under IFRS

In IFRS terms, revenue in the first quarter of 2020 totalled 723 million, down 13% relative to Q1 2019. This figure excludes revenue from joint ventures, in accordance with IFRS 11, which requires joint ventures proportionately consolidated in the Groups operational reporting to be accounted for using the equity method.

FINANCIAL CALENDAR & PRACTICAL INFORMATION

(remote participation only)

A conference call on Q1 2020 revenue and business activity will be held in English today at 6:30 p.m. CET, which may be joined using access code 6089145 by calling one of the following numbers:

The presentation accompanying this conference will be available on the Groups website from 6:15 p.m. CET and may be viewed at the following address: https://orange.webcasts.com/starthere.jsp?ei=1310111&tp_key=01ec69a57b

The conference call will be available on replay at https://www.nexity.fr/en/group/finance from the following day.

Disclaimer

AT NEXITY, WE AIM TO SERVE ALL OUR CLIENTS AS THEIR REAL ESTATE NEEDS EVOLVENexity offers the widest range of advice and expertise, products, services and solutions for individuals, companies and local authorities, so as to best meet the needs of our clients and respond to their concerns.Our business lines real estate brokerage, management, design, development, planning, advisory and related services are now optimally organised to serve and support our clients. As the benchmark operator in our sector, we are resolutely committed to all of our clients, but also to the environment and society as a whole.

Read the original:
Nexity: Q1 2020 business activity and revenue - Implications of the public-health crisis (Covid-19) - GlobeNewswire

SALT LAKE CITY Commercial real estate, which is not immune to the economic challenges stemming from the new coronavirus, is seeing some of its segments experience dramatic declines in development and occupancy while others are primed for growth in the aftermath of the crisis.

If you look at some (general economy) numbers, there are projections (from economists) that (gross domestic product) will drop as much as 40-plus percent, said Lloyd Allen, managing director for the Salt Lake City office of commercial real estate firm CBRE.

Commercial real estate activity will track (closely with) the overall (economic) market and then youll see a reduction in overall leasing activity or reduction in sales activity that will correspond and in some ways, even exceed the market because our industry is one that tracks at a level but then lags at a level, also.

He said this year new commercial real estate transaction activity such as sales and leasing could decrease between 40% and 42%, but one segment of the commercial market that should prosper in the long run is the industrial sector.

Youll find in industrial leasing well have a 12 or so month lag, but itll kick back and even be a sector that benefits in some aspects because youll see a stronger growth in e-commerce, he explained. We expect an acceleration to products that are ordered online and delivered to your house. And that will drive industrial warehouse logistics at a base level.

Grid View

We also expect retailers to be more aggressive with respect to inventory control that drives industrial and warehouse (development and leasing). Although youre going to see a bit of a lag in the industrial sector, it will be the quickest to rebound and probably even benefit at some level from the changes to the market.

Allen said last year the industrial market had over 7 million square feet of new construction more than double the 3 million square feet from 2018. Even with the added square footage, the vacancy rate was approximately 3.4% below the 5% level that is considered statistically full vacancy.

If all this space doesnt end up leasing for a six- to 12-month period, were still going to be sub-4% vacancy in the industrial market for spec construction, he said.

Spec construction is a speculative venture for a builder or developer who has built a project with the intention of selling it for profit, either as is, or with minimal changes necessary for sale. Other market segments will likely have a harder time recovering, he said namely retail and office.

Retail is going to be the hardest hit sector out of this. I dont think thats a surprise to anybody, Allen said. The number of stores that are closing, the request for rent deferral, and even some rent abatement, is going to by far be the strongest.

The inverse of that is youre seeing home improvement stores and even stores like Michaels and Hobby Lobby those things that you do on a Saturday afternoon are doing a good business, he added. Were seeing some expanded requests for the Dollar Store sector. That said, where industrial it could be 12 months in getting back to where it was, retail is certainly going to be longer. It may be twice as long.

In the local office sector, projects may be insulated from some of the major challenges because of prudent forecasting and building planning that prevented overbuilding, Allen said. But in the new paradigm of social distancing, how companies will use office space going forward may shift the upper hand in lease negotiations from the landlords to renters, he added.

The market over the last couple or three years at least has been more of an owner or an investor market, Allen said. Itll probably turn more to a tenant market with tenants being in a little bit more control of what their destiny is going to be.

Nationally, analysts are watching closely at how firms choose to ease their way back into the workplace or maintain some of the policies that have been implemented in the wake of the COVID-19 crisis.

Much of America is planning its return to the workplace. While that is a welcome turn of events, we also need to acknowledge and embrace that companies will return slowly to a changed workplace with new procedures, said Spencer Levy, CBRE chairman of Americas Research and senior economic adviser. Office users likely will practice social distancing by rotating employee groups allowed into the office on certain days. Restaurants, stores and hotels will need time to reassemble their workforces and restock supplies while limiting in-person patronage. It is likely that society and business wont fully return to normal until we have a vaccine.

He noted as commercial real estate copes with ramifications of COVID-19, collections of April rent for office, industrial and multifamily came in at around 90%. However, April collections were below expectations for retail at between 20% and 40% on average depending on asset type. The industry is watching May collections even more closely as an indicator of the health of commercial real estate in the short term, he said.

Despite the tremendous economic challenges in front of us, pent-up demand from consumers and office users will provide a spark for spending and office use shortly after movement restrictions are loosened, Levy said.

See the article here:
Utah commercial real estate feeling the impact of the COVID crisis - Deseret News

DeveloperRockport Grouphas resubmitted a proposal to the City of Toronto seekingrezoning and an Official Plan Amendment to permit a mid-rise development at2100 Yonge Street, located on its northwest corner with Manor Road West, between Davisville and Eglinton. Updated plans include sweeping changes to the original proposal from 2018, with a refined design from retained architectsRAW Designthat incorporates a height increase from 11 to 12 storeys.

Looking northwest to 2100 Yonge, image via submission to City of Toronto

Key statistical changes include a new height of 42.08 metres, a slight increase from the previous plan's 40.3-metre height. The proposed overall gross floor area (GFA) has decreased from 7,711mto 7,456 m. This is now broken down as 7,174 m of residential space, or 96.2% of the GFA, and 282 m of retail space at 3.8% of the total GFA.

Looking northeast to 2100 Yonge, image via submission to City of Toronto

Initial plans from June, 2018 included a lone rendering of the design concept accompanied by a series of massing diagrams, with exterior expression left absent. Nearly two years since the plan was first tabled, the revised plan has evolved with articulated rear terraces that sharply contrast against the more rigid volumes of the under constructionUovo Boutique Residencesnow coming to the site immediately north of 2100 Yonge.

Looking west to 2100 Yonge, image via submission to City of Toronto

The building is now set to include seven residential rental units and 91 condominium units, representing an increase of 20 condo units over the previous proposal's 71. The mix is now proposed at 48 one-bedrooms, 28 two-bedrooms, and 15 three-bedrooms.Two parking levels would house 22 long-term spaces for residents, and 82 long-term bicycle locker spaces.

Looking north to 2100 Yonge, image via submission to City of Toronto

You can learn more from our Database file for the project, linked below. If you'd like to, you can join in on the conversation in the associated Project Forum thread, or leave a comment in the space provided on this page.

* * *

UrbanToronto has a new way you can track projects through the planning process on a daily basis. Sign up for afree trial of our New Development Insiderhere.

Link:
Revised Plan Submitted for Mid-Rise Condo on Yonge in Midtown - Urban Toronto

Claire Khawaja of Designer Sofa Interiors has applied to demolish her existing building at 7 Peter Street and replace it with nine one-bedroom apartments and a new ground-floor retail unit.

The site of the proposed development is metres away from the recently demolished former offices of Kleinwort Benson, where Dandara are currently building 48 one- and two-bedroom apartments.

According to a design statement accompanying the Peter Street application, the existing building is of poor quality and offers little to the streetscape.

The existing walls are of masonry construction but appear to have no insulation, so we would argue the building is not suitable for modern commercial premises, the statement said.

No disabled access is achieved to the commercial premises and it should be noted the site has no parking either.

It adds that to the rear of the building which has an asbestos roof there are multiple ramschackle structures.

In conclusion, we feel the proposals set out in the application for this site meet all the Planning Departments requirements and should be approved, the statement said.

The redevelopment will retain ground-floor retail space which is important for town and the Island economy, whilst the space above will be used to help add dwellings to the Islands housing stock.

Across the street, Dandara were forced to alter their planning application to include 12 parking spaces after it was initially refused for not having any.

And, in the Peter Street application, no provision for parking has been made.

We appreciate the scheme does not have parking for the accommodation proposed but feel we have addressed this in this application. Essentially, there is no way to provide parking and maintain a proper ground-floor retail space with suitable shopfront which we feel is far more important, the statement said.

The building to be demolished is in a poor condition and its replacement will be a benefit to the town in our opinion. By adding residential accommodation above we feel the scheme maximises a site in the built-up area to its full extent and should be supported.

More here:
Plans for more apartments in the West's Centre area? - Jersey Evening Post

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COVID-19 continues to have a profound impact on constructionactivity in Canada. Governments have limited what constructionactivities can continue during the shutdown, issued emergencyorders affecting construction litigation, and changed health andsafety protocols at site.

The impacts to construction projects, litigation, and health andsafety vary across provinces and territories. Below is a guidelineresource for how each province and territory is managingCOVID-19's impact on the construction industry. For eachprovince and territory we have assembled and laid out,

1. the list of permitted construction and related servicesthat can continue;

2. the impact of emergency orders on limitation periodsand procedural deadlines for construction litigation; and

3. the recommended guidelines for increased health andsafety practices for construction sites.

Should you have any questions about whether your constructionproject can continue during the pandemic, or how these orders mayaffect your existing or future litigation, please feel free tocontact us. We will keep this bulletin updated on a weeklybasis.

To locate a particular province or territory in the list, pleaseclick it in the list below:

A)Ontario

B) Quebec

C) BritishColumbia

D)Alberta

E)Saskatchewan

F)Manitoba

G) NewBrunswick

H) NovaScotia

I) Prince EdwardIsland

J)Newfoundland

K) Yukon

L) NorthwestTerritories

M)Nunavut

The list of construction and related activities that maycontinue in Ontario during the pandemic are listed below.Ontario's complete list of essential services can be found here.

Construction Services

1. Construction projects and services associated with thehealthcare sector, including new facilities, expansions,renovations and conversion of spaces that could be repurposed forhealth care space.

2. Construction projects and services required to ensuresafe and reliable operations of, or to provide new capacity in,critical provincial infrastructure, including transit,transportation, energy and justice sectors beyond the day-to-daymaintenance.

3. Construction projects and services that support theoperations of, and provide new capacity in, schools, colleges,universities, municipal infrastructure and child care centreswithin the meaning of the Child Care and Early Years Act,2014.

4. Critical industrial construction activities required for,

5. Construction projects that are due to be completedbefore October 4, 2020 and that would provide additional capacityin the production, processing, manufacturing or distribution offood, beverages or agricultural products.

6. Construction projects that were started before April 4,2020, and that would:

7. Residential construction projects where,

8. Construction to prepare a site for an institutional,commercial, industrial or residential development, including anynecessary excavation, grading, roads or utilitiesinfrastructure.

9. Construction and maintenance activities necessary totemporarily close construction sites that have paused or are notactive and to ensure ongoing public safety.

Construction Related Services

10. Lawn care services and landscaping services.

11. Maintenance, repair and property management servicesstrictly necessary to manage and maintain the safety, security,sanitation and essential operation of institutional, commercial,industrial and residential properties and buildings.

12. Businesses that supply other essential businesses oressential services within Ontario, or that supply businesses orservices that have been declared essential in a jurisdictionoutside of Ontario, with the support, products, supplies, systems,or services, including processing, packaging, warehousing,distribution, delivery, and maintenance necessary to operate.

13. Stores that sell hardware products.

14. Garden centres and plant nurseries.

15. Business that provide land registration services.

16. Businessesthat deliver or support the deliveryof services including:

On March 16, 2020, the Ontario Government issued an emergencyorder suspending all limitation periods and procedural deadlines inlitigation. However, effective April 16, the Ontario Governmentexempted the limitation periods and procedural deadlines in theConstruction Act from the emergency order. For more details onthese changes and the impact on liens, holdbacks and constructionlitigation generally, please see our prior bulletin on this topichere: Show Me the Money Government of Ontario to AmendEmergency Order to Allow Release of Holdbacks. The completeregulation exempting the Construction Act that took effectApril 16 can be found here.

See here for the Chief Prevention Officer's guidance to theconstruction sector in Ontario on health and safety related toCOVID-19.

1. List of Permitted Construction and Related Services

Starting May 11, 2020, all construction industry worksites fromall sectors of the construction industry including residential,civil engineering and roads, institutional, commercial andindustrial can resume their activities (however, admin staff mustcontinue teleworking).

A summary of the more limited construction and relatedactivities that may continue in Quebec until May 11, 2020 arelisted below.

Construction Activities

1. Construction firms, for emergency repairs or to ensuresafety

2. Electricians, plumbers and other trades (emergencyservices only)

3. Equipment rental firms

4. Landscaping and landscape maintenance (includingnurseries, garden centres and businesses selling swimmingpools)

5. Construction and renovation of residential dwellings,for any immovable where the taking of possession of a residentialunit must take place on or before 31 July 2020, including thesupply of goods and services that may be required for the work,including the services of real estate agents, land surveyors,building inspectors and assessors, and chartered appraisers

Construction Related Activities

6. Maintenance of essential public infrastructures inproper working order (bridges, municipal buildings, etc.).

7. Construction, maintenance and upkeep of essentialactivities in connection, in particular, with public and privateinfrastructures that may create a risk for public health and safety(private dams, management of hazardous and radioactive waste,etc).

8. Cleaning, upkeep and pest management.

9. Building maintenance (elevators, ventilation, alarmsystems, etc).

10. Household appliance maintenance and repair.

Quebec's complete list of essential workplaces can be foundhere.

By Order number 2020-4251, the Chief Justice of Qubecand the Minister of Justice suspended prescription periods(limitation periods), forfeiture periods and procedural deadlinesuntil the public health emergency is lifted or otherwise amended byfurther order.

Construction hypothec periods are forfeiture periods and aretherefore suspended under the Order. However, contractors are beingadvised to act as if the deadlines still apply and to registertheir notice of hypothec, and notice of intention to exercise ahypothecary right within the requisite time periods (the landregistrar is still open to receive notices).

Additional guidance on how to calculate delays is expected fromthe Government once the suspension is lifted.

The COVID-19 Guides for Construction sites (French Only)published by the Safety of Labour Board (CNESST) on health andsafety can be found here and here.

A summary of construction and related activities that maycontinue in British Columbia during the pandemic are listed below.British Columbia's complete list of essential workplaces can befound here.

Construction and Related Activities

1. Construction work, construction firms, skilled trades,and professionals, and; construction and light industrial machineryand equipment rental.

2. Plumbers, electricians, elevator maintenance providers,property management services, building systems maintenance andrepair technicians, engineers, fire safety and sprinkler systems,and other service providers who provide services that are necessaryto maintaining the safety, sanitation, and daily essentialoperation of residences and commercial buildings.

3. Land registration services.

4. Workers who provide or support inspections to ensureworksites are safe for workers; and who investigate, process andmanage claims for workplace accidents, including services relatedto the care, treatment and provision of workers' compensationbenefits to those impacted.

NOTE: Unlike some other provinces, which have mandated theclosure of any type of business not deemed "essential" or"allowable", British Columbia does not mandate suchclosures across-the-board. A business or service that is not an"essential service" may remain open in British Columbiaprovides that such business or service can comply with therecommendations of the PHO. However, such businesses may be orderedto close by a specific order of the PHO.

Ministerial Order 86/2020 suspended limitationperiods and procedural time periods from March 26, 2020 until thestate of emergency is over (which as of April 21, 2020 is scheduledfor May 29, 2020, see here).

On April 15, 2020, Ministerial Order 98/2020 amended MO 86/2020,lifting the suspension of limitation and procedural time periodsunder the Builders Lien Act (as well as those under Division 5 ofPart 5 of the Strata Property Act) effective April 15, 2020. Oncelifted, it appears that parties will have the same amount of timeto meet a deadline that had been remaining before the suspensionbegan on March 26, 2020.

Please see here for the health and safety measures the BritishColumbian Government has indicated all construction sites shouldfollow: Guidance for Construction Sites Operating duringCOVID-19 Pandemic.

A summary of construction and related activities that maycontinue in Alberta during the pandemic are listed below.Alberta's list of essential workplaces can be found here.

Construction Activities

1. Construction projects and services associated with thehealthcare sector, including new facilities, expansions,renovations and conversion of spaces that could be repurposed forhealth care space.

2. Construction projects and services required to ensuresafe and reliable operations of critical provincial and municipalinfrastructure, including transit, transportation, energy andjustice sectors beyond day-to-day maintenance.

3. Construction work and services, including demolitionservices, in the industrial, commercial, institutional andresidential sectors.

4. Construction work and services that supports health andsafety environmental rehabilitation projects.

5. Construction projects to repair or render operable /safe any public conveyance, including elevators, escalators and skilifts.

6. Construction projects and services that are required toensure safe and reliable operations of critical energyinfrastructure or support supply chains.

7. Any other construction project that can safelyabide by the CMOH Public Health guidelines/directives.

Construction Related Activities

8. Land registration services.

9. Businesses that support the safe operations ofresidences and essential businesses.

10. Road and transportation construction and maintenance

11. The operation, maintenance and repair of criticalinfrastructure (railways, dams, bridges, highways, flood controlstructures, irrigation and water management structures, etc.).

12. Motor vehicle, auto-supply, auto and motor-vehicle-repair,including bicycle repair, aircraft repair, heavy equipment repair,watercraft/marine craft repairs, car and truck dealerships andrelated facilities.

13. Hardware stores and stores that provide hardware productsnecessary to the essential operations of residences andbusinesses.

14. Safety supply stores (safety gear and Personal ProtectiveEquipment).

NOTE: If a business is not listed here as an essential service,it can still continue to operate if: (i) it is not specificallyprohibited from offering services in a location accessible to thepublic; and (ii) the business doesn't fall under previous business, workplace and facilityclosures.

A business must still follow all other public health orders andguidelines for workplaces, including: (i)maintaining physical distancing; and (ii) prohibiting people fromcoming to work sick. Workplaces that are not otherwise restrictedor ordered to cease offering close-contact services or servicesaccessible by the public can have more than 15 workers on a worksite as long as they follow all public health guidelines, includingphysical distancing measures.

On March 30, 2020, a Ministerial Order suspended limitationperiods retroactively from March 17 June 1, 2020. ThisOrder only applies to enactments listed in Appendix "A"to the Order, which list does not include the Builders'Lien Act. As a result, limitation periods under theBuilder's Lien Act are not suspended.

However, the Order also suspends all procedural time periods inactive or intended proceedings from March 17-June 1, 2020. Unlikefor limitation periods, the Order does not specify that thissuspension applies only to the enactments in Appendix"A".

It is accordingly unclear whether the suspension of proceduraltime periods applies to every proceeding under the Builders'Lien Act or otherwise. Given this lack of clarity, parties shouldmeet the deadlines in the Builders' Lien Act.

Alberta's Workplace Guidance for Business Owners can befound here.

A summary of construction and related activities that maycontinue in Saskatchewan during the pandemic are listed below.Saskatchewan's list of essential services can be found here.

Construction and Related Activities

1. Construction firms.

2. Services performed by trades people, residential andcommercial installation and landscaping services.

3. Rental equipment.

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Construction Through COVID-19 In Canada: A Guideline For What Each Province And Territory Is Doing [Current As At May 4, 2020] - Real Estate and...

One of Dallas top legal firms is eyeing a major investment in Plano.

Haynes and Boone LLP, a 50-year-old law firm with more than a dozen offices around the country, is planning a new location in Planos Legacy West development.

The almost 30,000-square-foot office will be in a new building under construction on Headquarters Drive at Windrose Avenue, according to filings with the state of Texas.

The Haynes and Boone office will be near Liberty Mutual Insurances regional office campus and across the street from the Legacy Hall food and entertainment venue.

Haynes and Boone representatives declined to provide any details about the new office.

The law firms headquarters is in the Victory Park development on the northwest corner of downtown Dallas. Haynes and Boone also has a smaller office at 2505 North Plano Road in Richardson.

The office Haynes and Boone is planning in Plano would be in a building being developed by Legacy West developer Karahan Cos.

Designed by Gensler architects, the project will include almost 87,000 square feet of office space and more than 24,000 square feet of ground-floor retail. There will also be a large parking garage.

On the west side of the building, facing Communications Parkway, will be five stories of apartments 161 units.

Karahan is building the mixed-use project in partnership with Columbus Realty, which has developed apartments in Legacy West Urban Village.

The building is under construction on one of the last sites in the $3 billion Legacy West development.

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Haynes and Boone eyes new Plano office - The Dallas Morning News

PLANS to convert part of a disused city centre building into apartments has been given the green light.

Phoenix House in Broad Street in Worcester, which was built in the 60s, can now be made into a mix of17 apartments and retail space after the plan by Deansway Regeneration was granted permission by Worcester City Council.

The upper floors of the four-storey building could also be converted into a hotel, under the new plans.

The upper floor office space has been empty, apart from a section retained for occasional use by the previous owner, for several years, with some parts having fallen into a serious state of disrepair.

The rear of the building will be converted into apartments with around half the space remaining as a shop.

A statement included with the application said: The proposals would positively contribute economically to the city through the creation of temporary construction jobs and improved retail and commercial space, which has over recent years suffered from a lack of investment.

There would also be new residents bringing disposable income into the city.

The proposals would contribute socially through the creation of new housing choices for a range of different population cohorts and would offer short term accommodation options for visitors to the city; the scheme would also offer environmental benefits through the improvement to the appearance of the building within a sensitive part of the city, and create accommodation which is sustainably located, reducing dependency on motorised transport.

Overall, we consider the proposals constitute sustainable development, and would positively enhance the conservation area and settings of neighbouring designated heritage assets.

The proposals would bring activity and people into the city centre, improving natural surveillance and vitality to a building that contributes nothing to the city at present.

Excerpt from:
Empty building in Worcester to be converted into flats - Worcester News

The office market in the West Loop neighborhood of Fulton Market was all set for a historic year. The now-trendy district started 2020 with a total inventory of around 4.2M SF, but developers attracted by the robust leasing thatbrought in Google, McDonalds and WeWork have an additional 2M SF under construction and set for delivery in the next 12 months.

Courtesy of Shapack Partners

167 North Green St. in Fulton Market

But with so much new space coming online and a dense concentration of coworking space, what had been the central business districts hottest submarket now faces a lot of uncertainty, according to Colliers International, which just released stats on Q1.

Considering possible social distancing changes, the businesses of this community may see a dip in attraction in the near term, Colliers said. The coworking model is expected to change dramatically and such a high percentage of coworking firms in the area may make the area vulnerable to vacancy increases, in particular sublease vacancy, in the near term.

By the end of the year, the neighborhood will host more than 600K SF of coworking space, including WeWorks 133K SF on three floors at 167 North Green St., a new towerthat developers Focus and Shapack Partners began building in April 2019 and plan to finish by the end of 2020.

The submarkets vacancy rate shrank to 7.5% by the end of last year, but with the completion of several major office projects, including Sterling Bays 333 North Green St., a 19-story, 553K SF office and retail building, the rate jumped in Q1 to 15.2%, even after 228K SF of positive absorption.

Courtesy of Colliers International

Fulton Market statistics

Among CBD submarkets, River North may have the best chance of making it through the pandemic without permanent damage, Colliers said. Like Fulton Market, its a former warehouse and industrial loft district attractive to creative users. But River North is already highly developed, and its more than 16M SF inventory has a diverse mix of tech firmsandcreative firms, along with residences and entertainment options that keep attracting new tenants.

The neighborhoods vacancy rate now stands at 10.3%, and many new lease deals were completed in the last two years, Colliers said.

Tenants in these assets looking elsewhere for a deal will have a difficult time finding comparable space with the same amenity access and ease and proximity of public transportation, according to the Colliers report.

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River North May Prove Resilient To Pandemic, But It's Going To Hurt In Fulton Market - Bisnow

The languishing site of the On The GO Mimico condo developmentwhich ceased construction before reaching grade when its developer failedcould soon be host to a two-tower mixed-use project. A rezoning application was submitted for the property at 327 Royal York Road in October, 2019 by VANDYK Group of Companieswhich envisions 29 and 44-storey residential towers and commercial space along with a reconstructed Mimico GO Station integrated into the podium.

Looking northwest to 327 Royal York, image via submission to the City of Toronto

The 27-storey, 242-unit On The GO Mimico project was placed into court-receivership in 2017 after developer Stanton Renaissanceran into financial problems. Metrolinx had partnered with the developer on the project, which would have contained 141 underground parking spots for GO commuters.

The site at 327 and 315 Royal York, image via submission to the City of Toronto

The development site is located directly north of the existing Mimico GO Station at 315 Royal York Road in the Mimico Triangle, an area currently characterized by light industrial land uses. Purchasing the property in 2017, VANDYK is the largest landowner in the area, and has proposed other high-density developments at 23 Buckingham Street and 39 Newcastle.

Looking northeast to 327 Royal York, image via submission to the City of Toronto

In October, 2018, Metrolinx announced that they had partnered with VANDYK in a deal which would see the developer pay for the construction costs of a revamped Mimico GO Station in exchange for the air rights above the transit hub. Mimico Station was built in 1967, the same year GO Transit began operation. Serving about 1,200 riders daily, ridership at the station is expected to triple by 2031.

Looking west towards 327 Royal York, image via submission to the City of Toronto

VANDYK's plan calls for 104.4 and 146.4-metre-high residential towers designed by SvN. There would be 499 one-bedroom units, 121 two-bedroom units, and 67 three-bedroom units for a total of 687 residences. Along the south face of the project facing the rail corridor, VANDYK proposes 8,809mof office space. A further 276m of retail and 1,096mof transit-related space is proposed. A combined 514 parking spaces for residential, visitor, office and retail users would be held within a three-level below-grade and a three-level above-grade garage. 103 of these on-site parking spaces would be reserved for commuters on the 315 Royal York portion of the site.

The reconstructed Mimico GO Station would include direct connectivity to Royal York Road, pick-up and drop-off spaces, a west tunnel providing platform access, a transit plaza, and bicycle facilities. A multi-use pedestrian and cyclist path would form part of the Mimico-Judson Greenway contemplated by the Mimico-Judson Secondary Plan.

View of the west facade along Royal York Road, image via submission to the City of Toronto

Paying deference to the height of the townhouses to the north, adjacent to Christ Church Cemetery, the podium would rise four storeys. On the east and west sides, the podium climbs to eight storeys to accommodate parking and office spaces. The long east-west massing of the podium also has the benefit of mitigating noise for condo residents. Diagonal precast concrete fins are employed to frame views outwards and reduce solar heat gain. The cantilevered podium provides protection from the elements for GO commuters and Greenway users below.

Glazing, wood framing and wood fins are proposed as the primary materials cladding the new station. The north wall of the station building, which faces the Greenway, is imagined as a canvas for public art.

Sectional perspective of the podium, image via submission to the City of Toronto

The towers adhere to the 750 m floor plate and 25-metre tower separation policies under the City of Toronto's Tall Building Guidelines. Two-storey faceted precast panels are applied uniformly across the two towers, continuing the architectural expression established on the podium. Indoor amenity spaces are proposed on the fifth and ninth floors and would provide for views to the exterior terraces and green roof spaces.

In their 2018 announcement, Metrolinx said a temporary station will be in place by 2023 while the new building is constructed. The rezoning application is currently being reviewed by the City.

You can learn more from our Database file for the project, linked below. If you'd like to, you can join in on the conversation in the associated Project Forum thread, or leave a comment in the space provided on this page.

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Mimico GO Station to be Integrated in VANDYK Mixed-Use Development - Urban Toronto

On Yonge Street north of the North York Centre Centre area of Toronto, a block-long pit is forming at the future site ofAoyuan International'sM2M Condoscommunity. Work on the five-towerWallman Architects-designed development, namedin a nod to the local postal code, has been active since last year when the former Newtonbrook Plaza and an adjacent office building were demolished to make way for the new density.

Panorama looking east across M2M site, image by Edward Skira

Demolition activity wrapped up last Fall, a few months after the first cuts were made into the office tower at the site's south end. Drilling activity followed around the perimeter of the site, forming the first elements of a pile and lagging shoring systemvertical steel piles bracing slats of horizontally-placed timber laggingwhich holds back the surrounding soil as the pit reaches its final four-storey depth.

Looking southeast across M2M site, image by Edward Skira

At the south end of the site, where the first phase towers will rise, digging has bottomed out at a 13.3-metre depth below street level. Digging continues in a south-to-north orientation, with only a section at the north end of the site yet to begin excavation. From this area, a long soil ramp extends into the heart of the pit, providing access to the base of the excavation that will eventually be replaced by a crane and sets of construction stairs.

Looking northeast across M2M site, image by Edward Skira

The installation of a first tower crane will mark the next major milestone in the construction process, marking the first steps in forming for the underground garage that will span the site. The initial phase that will rise first from the south end will include 34 and 36-storey condominium towers with a total of 810 units atop a commercial/retail podium. Three additional buildings will eventually populate the remaining block to the north.

Phase 1 of M2M Condos, image courtesy of Aoyuan International

You can learn more from our Database file for the project, linked below. If you'd like to, you can join in on the conversation in the associated Project Forum thread, or leave a comment in the space provided on this page.

* * *

UrbanToronto has a new way you can track projects through the planning process on a daily basis. Sign up for afree trial of our New Development Insiderhere.

Read more here:
Excavation Bottoming Out for M2M Condos in North York - Urban Toronto