IDE Trois-Rivières wants to 15 buildings by 2020
THREE-RIVERS — The real estate strategy of Innovation and economic Development (IDE) Three-Rivers will experience a new phase of growth, while the number of buildings in its portfolio will increase from 10 to 15 by next year.
“We host currently 58 companies that generate 361 jobs. And since 2016, our customers have invested nearly $ 70 million in equipment,” said the director general of IDE Trois-Rivières, Mario De Tilly.
In addition, property taxes and transfer taxes will amount to 860 075 million in 2019 in the City of Trois-Rivières. “The financial risk is low due to the number of customers and their financial stability”, he explains.
He reminded that in a first phase, which stretched from 2003 to 2015, there had been the construction of four buildings totaling 117 204 square feet, for a cost of $ 13.8 million, which will permit, among other things, the arrival of the Technocentre, the Novocis and the Hangar Lindbergh. The goal, he said, was to stimulate investment in a context of informalization of economic.
The second phase, from 2015 to 2018, has been marked by the purchase of seven brownfield sites, and commercial in order to recover these spaces and reduce the carbon footprint. At the same time, it would enhance the value on the assessment roll of the City these buildings and reduce the pressure on the available land, in addition to providing a benefit in real estate is a competitive business.
The seven buildings with a surface area of 251 207 square feet, acquired and refurbished at a cost of 16 million dollars, has been transformed in four motels industrial, an accelerator of business, and two business centers.
“All these buildings were on the market for sale during a period varying from two to twelve years, without any offer to purchase acceptable to the private sector”, wished to clarify Mr. De Tilly.
Why such a real estate strategy? Because, he said, of the de-industrialization of the mauritian economy that began in the 80’s and has been extended until mid-2010.
“The private sector and the speculative focus on the commercial and residential real estate, which puts a distinctly industrial real estate, which is less paying. However, the industrial sector represents 13 % of the workforce and 21 % of local GDP”, he noted.
The latter also refers to the writedown of buildings, industrial zones and industrial parks, due to the number of derelict sites abandoned or neglected, and this modernization of the economy towards a model based on innovation and creativity.
“In 2016, the centre of the city of Trois-Rivières had over 360 000 square feet of office spaces rental of vacant to which must be added 400 000 square feet of industrial space, (Wabasso), and institutional free (dairy, Ursulines, etc),” says De Tilly. “And in the industrial parks, even alarming situation in 2016 with a million square feet (Transforce, Dayco, NSC Paper, Molson, Ganotec, federated Coop, etc),” says he.
According to him, investors, manufacturers and technology no longer want to manage the buildings and capitalize in assets to liabilities. And the idea is to offer a competitive advantage against the competition regionally and nationally.
Urban revitalization, a renewal of some neighbourhoods, the improvement of buildings already existing, improvement and modernization of infrastructure, creation of green spaces, arts and culture, beautification and the environment: this is what composes the quality of the place as sought by the real estate strategy of IDE Trois-Rivières.
In addition to the creation of an innovative ecosystem, Mr. De Tilly talks to stabilize the real estate market through the recovery of wasteland. “The wealth is found mainly in the factors of development immaterial,” he said.
Any expenses financial and significant contribution to the quality of the living environment, which increases the capacity of attraction and retention of talent: these are some of the advantages of this real estate strategy.
“The City does not have to capitalize or forecast of cash outflows. The aid consists of a guarantee of loans to up to 50%,” says the one who put forward the figure of $ 15 million for the first two phases.
If the real estate market is in recovery and will result, he said, by an increase of tax revenue, the pressure is on the sharp decline on the demand for industrial land and the costs of extension of networks. Another advantage is that the intensification of activities in an urban area.
“When the decapitalization of IDE Trois-Rivières, the result of the sale of the buildings will be handed over to the City,” says the one who considers this amount to nearly $ 75 million in 25 years.