Quote:
Originally Posted by VarBreStr18
Talking about delay, I just realize TAB Tower 1 was marketed in the spring of 2014. It is now end of 2019, tower 1 is not even fully occupied. So it is also 2 years delay and counting. Kinda disheartening to see all surrounding projects which comes much later yet completed much ahead of TAB. Shape is backed by multi billion Ontario pension plan which is essentially "other people's money", hence no burning need to finish fast, there is no strict accountability when not using your own money. Quite unlike smaller private regional companies which need to capture the gain as quickly as they can... because it is their own money. Should have post this in the TAB tread.
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Virtually ALL developers build their projects with,...."
other people's money".
It doesn't matter whether it's bank financing/loans or investment/pension funds like this.
It's literally the business model of the entire profession and industry.
The only developers you'll tend to see building projects with their own money tend to be smaller developers (read : family owned) or developers new to the game who don't have that much credibility (with banks and financiers) built up yet.
And the bigger the project the almost certain likelihood that it's all entirely external financing that's going into building it.
Why carry all the risk yourself when you can profit off of "other people's money" pretty much the same way banks do with your savings - which also explains why they tend to have such a cosy relationship with each other.
Them and politicians.
Which is actually where developers actually DO spend their own money:
Lobbying politicians and greasing the bureaucracy wheels of the political system to get laws swaying their way.
it's the other reason why it's so difficult to get into their little boys club and the development game unless you're uber-wealthy (and even then, chances are you know your way around getting things done with other people's money as opposed to your own).
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