Dormer Homes - Highlight 2019

dormerhomes.ca

Highlights As of April 17 , 2019

2019

it’s about

HEART

CONTENTS

OVERVIEW 03

President & CEO Message

03

2018 Milestones

PROJECTS 03

Current Portfolio

03

King 22 Project (Sold)

03

Yonge and Bloomington

03

Yonge and Bond

03

Bayview and Sheppard

03

Land Investment

Masoud H.Dolatabadi President & Chief Executive Officer

Dear Dormer Homes Participants, We are pleased to share with you our “2018 Highlights” document that summarizes the collective accomplishments of Dormer Homes.

Thank you for your support and investment in Dormer Homes. We are proud of our progress in 2018 and we are eager to make even more progress in the year ahead. We strive to grow and increase our development activity while achieving the highest results for our shareholders. aI’m happy to report that Dormer Homes continues to consistently achieve positive results amongst the City (Toronto, Richmond Hill, and Aurora) staff, government entities, banks, and other financial institutions by sustaining its successful approach to real estate development.

BY THE END OF 2018 - Obtained Draft Plan of subdivision, approval and rezoning for Dormer Hill.

- Completed second submission for SPA and rezoning for Dormer Bond.

- Completed purchase of the 3rd lot (2810 Bayview) for Dormer Bay. Looking forward, we are excited for 2019 as we expect to obtain final site plan approval for Dormer Hill, rezoning and site plan approval for Dormer Bond.

Currently we are finalizing a contract with construction company as our JV Partner to assist us with the construction of the Dormer Band project as wel as the sales and marketing program.

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MESSAGE FROM PRESIDENT AND CEO

2018 PROJECT MILESTONES

JAN.

APR.

Fuel Tank decommissioned from Aurora property

1st Submission for ZBA and SPA for Dormer Bond Project

DSS (Designated Substance Survey)Completed for Dormer Hill Project

Project Kick off for Dormer Bay Project

Demolition Permits Issued for Dormer Hill Project

Revision of Dormer Bond Feasibility Study

FEB.

MAY.

Fist Submission for OPA, ZBA, DPOS and DPOC for Dormer Hill Project

Hiring of new architect for Dormer Bay project (mid-rise building)

Installation of Barn Swallow Structure for Dormer Hill Project Demolition of the barns and storage hut for Dormer Hill Project

Infiltration testing completed for Dormer Hill Project

MAR.

JUN.

Asbestos removal from existing home for Dormer Hill Project

Aurora General Council Meeting, recommendation report received

Demolition of existing home for Dormer Hill Project First pre-consultation for Dormer Bay

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Completion of Dormer Bay Feasibility Study (mid-rise building)

A Message Can come here

JUL.

OCT.

Fuel Tank decommissioned from Aurora property

1st Submission for ZBA and SPA for Dormer Bond Project

DSS (Designated Substance Survey)Completed for Dormer Hill Project

Project Kick off for Dormer Bay Project

Demolition Permits Issued for Dormer Hill Project

Revision of Dormer Bond Feasibility Study

AUG.

NOV.

Fist Submission for OPA, ZBA, DPOS and DPOC for Dormer Hill Project

Hiring of new architect for Dormer Bay project (mid-rise building)

Installation of Barn Swallow Structure for Dormer Hill Project

Infiltration testing completed for Dormer Hill Project

Demolition of the barns and storage hut for Dormer Hill Project

SEP.

DEC.

Asbestos removal from existing home for Dormer Hill Project

Aurora General Council Meeting, recommendation report received

Demolition of existing home for Dormer Hill Project First pre-consultation for Dormer Bay

Completion of Dormer Bay Feasibility Study (mid-rise building)

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KING AND MCCACHEN PROJECT

A chic new enclave of luxury Towns & Semi-Detached homes that exude style and modernity, Surround yourself with clean-lined, premium appointments and a landscape of ships, bistros, and nature. Luxurious in every sense of the word.

UPDATE Richmond Hill

DRAFT PLAN APPROVAL AND ZONING BY-LAW AMENDMENT

DORMER KING 22

The Final Committee of the whole meeting took place in February. Town of Richmond Hill Council approved the Staff recommendation report to the Zoning By-law Amendment and Draft Plan of Subdivision Applications Subsequently, after the appeal period expired, the Notice of Decision with the Final Approval was issued in March for the Plan of Subdivision and Zoning Amendment.

Completion of Land Assembly

ABATEMENT WORK / ASBESTOS REMOVAL

APRIL 2015

The Abatement / Asbestos removal work started in March. The Clearance certificate was issued in March.

The work was a requirement for demolition permits were extended to December.

First Submission

CIVIL ENGINEERING DRAWINGS

OCTOBER 2015

The Final Civil Engineering drawings were summited to the Town in July. This review was required for the Public

approval of Site Servicing work. The first comments were received in September. The revised drawings were

Consultation Meeting

submitted to the Town in October.

APRIL 2017

CERTIFICATE OF AREAS AND FRONTAGES Second Submission

The Lot Frontages and Lot Areas for the proposed development were certified by the surveyor in August.

JUNE 2016

ARCHITECTURAL CONTROL Draft Plan of Subdivision Approval

Our detailed Architectural drawings including elevations and floor plans were submitted for Architectural

FEBRUARY 2017

Control in June. Several revisions were provided over the subsequent months which fully addressed the Town’s Urban Design concerns.

Sale of the Project NOVEMBER 2017

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TRCA APPROVAL The TRCA approval was issued in October.

COST SHARING (ZONIX DEVELOPMENT) In September we attended the Council Meeting for Zonix Kent (Developer immediately to the east of our development).

We submitted a written delegation requesting that the Zonix final appr0val be conditional upon the payment of Cost sharing for land and municipal services which would be installed

by Dormer king. The Town Council accepted the letter without reservations.

NOVEMBER, PROJECT SOLD After several negotiations, the project was sold unconditionally to King East development with a closing date of January 2018.

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YONGE AND BLOOMINGTON PROJECT

GENERAL COUNCIL MEETINGS The first Aurora Council meeting for 14029 Yonge took place on June 19, 2018. At this meeting, the staff report from City Planning was presented to Aurora Council. The staff report recommended the approval of the Draft Plan of Subdivision and the Rezoning of the property. There were no objections from the public and the report was accepted and approval was recommended to take place at a future Council

Aurora

meeting.

DORMER HILL

A second Council Meeting was held on July 17, 2018. At this meeting, Council voted 5-2 in favour of approval of the Plan of Subdivision for 14029 Yonge St.

OFFICIAL PLAN AMENDMENT AND ZONING APPROVAL

Completion of Land Assembly JULY 2015

OPA 18 (Bylaw 6110-18) and Zoning By-law 6111-18 we enacted by Town Council on July 24, 2018. OPA 18 was subsequently sent to the Region of York for approval as the Upper Tier Municipality. The Region issued its notice of decision to approve OPA 18 on August 30, 2018, with the appeal period ending on

First Submission MARCH 2017

September 19, 2018. The appeal period expired without any appeals.

Public Consultation Meeting MAY 2017

Aurora Town Council approved the Draft Plan of Subdivision (DPOS) and Draft Plan of Condominium

DRAFT PLAN OF SUBDIVISION AND DRAFT PLAN OF CONDOMINIUM

(DPOC) on July 24, 2018. Notices of decision for these applications were issued on September 4, 2018, with the appeal period expiring on September 24, 2018. The appeal period expired without any appeals.

SITE PLAN APPROVAL

Comments Received From Town AUGUST 2017

The Site Plan Approval is estimated for summer of 2019. We are currently preparing the final submission which is anticipated for end of February 2019.

Second Submission COMPLETED FEBRUARY 2018

OFFER TO PURCHASE DORMER HILL We have received several offers for the purchase of the Dormer Hill Project. However, these offers have not firmed up. We will continue to entertain any offers that makes sense to our operations.

Draft Plan Approval APPROVED SEPTEMBER 2018

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YONGE AND BOND PROJECT

MEETING WITH THE CITY OF RICHMOND HILL URBAN DESIGN DEPARTMENT As a result of the 1st submission which took place in Spring of 2018, we received various comments regarding the proposed development. One of the most significant changes came from the Urban Design department which proposed a re-orientation of the internal blocks, an increase of the landscape area at the North East corner of the site and removal of the access to Yonge Street. As a result we met with

Richmond Hill

the Urban Design department in August of 2018. After several revisions and we were able to reach an

DORMER BOND

agreement with Urban Design. We provided more landscaping and re-oriented the internal block as per the Town’s request however, in exchange we were able to maintain the access to Yonge St. and were able to increase the number of units from 115 to 116, and subsequently 120 units.

SECOND SITE PLAN AND REZONING SUBMISSION

Completion of Land Assembly MARCH 2017

Our Second SPA/ZBA submissions took place on December 21st 2018. The second submission was delayed due to the municipal elections which took place in 2018. As a result our second submission was completed in December (First Submission was April 5th 2018).

First Submission Completed APRIL 2017

PUBLIC MEETING The Public Meeting has been confirmed for February 6, 2019. While there are no guarantees, we are expecting a favorable outcome. From a Planning point of view our proposal complies with the Official

Second Submission COMPLETED DECEMBER 2018

Plan as well as the Provincial Policy Statement, however, it remains to be seen if the public raise any concerns with the development.

JOINT VENTURE WITH BUILDER Public Meeting FEBRUARY 2019

We have had several meetings with two Construction companies. After many discussions we have decided to choose a company with a lot of experience in Construction. This company not only has significant experience and excellent track record but also has good relationship with banks and other financial institutions. In this regard, they will assist us in obtaining better financing terms for land and also for future construction loans.

Rezoning Approval ANTICIPATED BY SUMMER 2019

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BAYVIEW SHEPPARD PROJECT

LAND ASSEMBLY At this time, the land assembly for this project consists of 3 lots: 2810, 2812 and 2814 Bayview Avenue.

Negotiations for a 4th lot (2816 Bayview) have taken place however no agreement has been reached yet.

This lot is not critical to this project however, we will continue to negotiate with its owner and if a deal is made, the addition of the 4th lot will result in an increase to the total GFA and number of units of the

North York

project.

DORMER BAY

CHANGE FROM TOWNHOMES TO APARTMENT CONDO Given the site’s proximity to the subway and Highway 401 we felt that a mid-rise building is a better fit for this location than townhomes and more in line with the PPS (Provincial Policy Statement) which

Completion of Land Assembly XXXX

encourages intensification. After significant analysis and market research we determined that project feasibility can also be increased with a mid-rise building; In addition, the low-rise market has cooled off over the past year however, condo apartments have not.

HIRING OF CONSULTANTS

First Submission APRIL 2019

Most consultant have already been retained. In the summer of 2018 we have retained Kirkor Architects, a renowned architectural firm which has an outstanding track record and has had a lot of activity in the City of Toronto and especially around Bayview Village.

Public Consultation Meeting SUMMBER 2019

CHANGES TO SIZE OF UNITS The initial midrise building was designed with 42 units and 1 level of underground parking. This building had really large units (average of 1,200 Sq. Ft.) After a detailed marketing review concerns were identified about the successful sales and marketing of such large units. The concerns were related to a

Second Submission ANTICIPATED BY SUMMER 2019

high sales price and a low sales absorption rate which could result in difficulties obtaining construction financing. As a result, the building was re-designed with smaller suites resulting in a total of 53 units.

This also resulted in the addition of a 2nd level of underground parking which increased construction cost. However, given that underground parking sells for 45,000 per space we will be able to cover the additional cost of construction and the overall project feasibility is increased with this latest revision.

Rezoning Approval ANTICIPATED BY FALL 2019

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PRE-CONSULTATION MEETING The first pre-consultation meeting which occurred in March of 2018 presented the old proposal of 9 townhomes. As such, a second pre-consultation for the mid-rise building took place in August of 2018. City staff were quite receptive to the mid-rise building. They provided a number of comments which our architect has already addressed in the latest revision.

COMPLETED REPORTS As of December 2018, the following reports/plans have been completed:

- Phase I Environmental Site Assessment - Phase II Environmental Site Assessment - Geotechnical Investigation and Chemical Analysis of Soil (Revised) - Hydrogeological Investigation (revision under way) - Market Research Study - Feasibility Study - Topographic Survey - Architectural package - Site Grading and Site Servicing Design

FIRST SUBMISSION AND OTHER PLANNING MATTERS We anticipate the first submission for ZBA and OPA to take place by the end of February 2019 and hope to receive comments within a couple of months.

We hope to be scheduled for a Public meeting in summer or fall of 2019 and make a 2nd submission shortly thereafter. We will work diligently to obtain Rezoning and Site Plan Approval as quickly as possible.

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PURCHASE PRICE VS. MARKET

DORMER HOMES PROJECT SUMMARY BY LAND PRICE PURCHASE PRICE VS. CURRENT VALUE

$Million

60

$25,000,000

$55,978,000

$20,385,000.00

50 Land Value Increase % 81

$20,000,000

40

$17,181,828.00 $30,880,000 $14,300,000

$15,000,000

30

20 $9,750,000

$10,000,000

$8,661,198.00

10 $6,350,000

0

$5,400,000 $4,830,000

$5,000,000 Cumulative 2014-2017

Market Value End of 2017

Total land area under development: 924,000 Sq. Ft.

$0 DORMER HILL

Total land value of our investment: $42,000,000 Current market value is $70,000,000 Our portfolio has appreciated by 65%

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PURCHASE PRICE

DORMER BOND CURRENT VALUE

Land Value for Dormer Bond and Dormer Hill based on Appraised Value

Total value of units under development: $165,000,000

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DORMER BAY

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Land Value for Dormer Bay based on $/Buildable comparables from Altus - RealNet Canada Land Value for Elegant Gardens, Jefferson Sideroad and Sunaset Beach based on actual sale price

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DORMER KING (SOLD)

CURRENT PORTFOLIO OVERVIEW Project Name

City

Land Size(Ac)

Project GFA (Sq.Ft)

Number of units

Type

Portfolio by Product

Dormer King

Richmond Hill

2.14

64,686,00

14

Freehold Townhomes (Sold)

6%

Dormer King

Richmond Hill

2.14

8

Semi Detached (Sold)

4%

Dormer Hill

Aurora

4.2

91,180,00

27

Single Detached

12%

Dormer Bond

Richmond Hill

3.17

152,685,00

120

Condo Townhomes

54%

Dormer Bay

toronto

0.44

61,264,00

53

Condo - Apartment

24%

9.95

369,815,00

222,00

Total

PORTFOLIO BY LOCATION

PORTFOLIO BY PRODUCT

4%

100%

54%

160 140 120

6%

100 80

24%

60 40

12%

20 0 Freehold Townhomes (Sold)

Condo Townhomes

Semi Detached (Sold)

Condo - Apartment

Richmond Hill

Aurora

Toronto

Single Detached

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OTHER CORPORATE AFFAIRS NEW INVESTORS / SHAREHOLDERS

OTHER MEETINGS / SEMINARS

In 2018 we have had significant interest from various people

xIn order to stay informed on important market trends and

interested in participating in our projects as shareholders.

other industry developments we have continued to attend

Numerous meetings were held in this regard and as a result

various seminars and events organized by BILD, Altus, TREB

we were successful in absorbing eight new investors which

and the Toronto Board of Trade; In addition, we have attended

resulted in increasing the company’s capital. The increase

the annual Land Development Conference in May of 2018 and

in capital will support ongoing land development costs

the Canadian Real Estate Forums in November 2018. Such

needed to take us to construction stage. In addition, a

events are useful not only for information gathering but also

portion of this capital can be used to acquire new projects

for business networking.

which will increase our land holdings and diversify our

FUTURE PROJECTS

assets further.

We are constantly looking for new projects that make sense to our operations. We continue to work with various Real Estate

PUBLIC RELATIONS

professionals to seek new opportunities (both on and off the market) and at the same time, we are constantly improving our

The 2018 municipal elections were held on October 22, 2018.

in-house capabilities for feasibility analysis and Due Diligence.

In order to maintain good relations with political leaders

As mentioned above the absorption of new investors resulted

Dormer management has been actively involved in supporting

in an increase to overall capital which will be used to secure

the electoral campaigns of various city councilors and mayoral

new projects. Once new land is acquired investors will have the

candidates in Toronto, Aurora and Richmond Hill.

option to further expand project shares as desired.

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FAMILY BUSINESS, FAMILY VALUES 40 YEARS OF PASSION, CARE AND BUILDING EXCELLENCE

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255 Duncan Mill Rd #204, North York, ON M3B 3AH9 T. (647) 429 7090 F. (647) 348 8995

info@dormerhomes.ca dormerhomes.ca