With a new CEO in place, IHA Canada (Innovative Housing Alternatives) is set to begin construction by early August on the first phase of Glengarry Hills Village, an affordably priced 54-acre retirement village in Alexandria, Ont.

Plans call for 750 to 1,000 bungalow-style houses to be built at the site over the next seven to 10 years in the 10-phase project, with the initial housing slated as age-in-place rentals for independent seniors. The first phase will include 100 houses and should be completed in about 18 months. 

“We’re stepping outside the box and providing non-institutional active living for seniors,” Asif Khan, who became IHA Canada CEO on May 23, told RENX Homes.

Khan is also CEO of development firm Verona Real Estate Group and real estate management company Skymark Management Corporation. 

Khan said he was intrigued by the affordability aspect of the retirement community, which is within walking distance of downtown Alexandria.

He’s seeing many seniors in the GTA selling their homes – their principal source of wealth – which they’ve had for decades, and seeking smaller, more affordable homes in Barrie or other locales north of Toronto.

“They’re able to rent and live on the income they get from the sale of their property, and then have the quality of life they’re looking for,” he said. “This Alexandria project addressed some of those factors for us.”

He notes that to have an affordable retirement community “you need to have proper land costs.”

Alexandria is almost the same distance from Montreal (106 kilometres) and Ottawa (103 kilometres), and Khan expects Glengarry Hills Village to attract strong interest from seniors in both cities. It is about 25 kilometres north of Cornwall, near the Ontario-Quebec border.

Homegrown and international investors

The independent living project currently has a 200-name waiting list. “We know that the concept works. We know that there is demand for it,” Khan said.

He added the “total buildout exit value” of Glengarry Hills Village is about $900 million.

“The previous management team did a fantastic job getting (Glengarry Hills Village) ready for construction and we’re bringing in funding,” he said. “Our institutional partners are very keen and very interested.”

IHA Canada is now listed as Verona’s client for the retirement living community.

Construction costs for the the first two phases have been arranged with North American investors but for Phase 3 onward, institutional investors from Qatar looking to expand into the retirement and student housing markets are “very keen at being first at market to participate in the funding.”

Khan said international real estate investors see Canada as a very stable country politically and economically and given that “there is so much volatility around the world, Canada represents true safety.”

Khan said he likes that Glengarry Hills Village is not a typical vertical-style retirement community.

“We’ve learned from COVID that when there’s a lockdown, the people that suffer the most are the elders because no one can get in or out. This is a horizontal build.”

Later phases of the development will have houses available for purchase, meaning that residents’ children and grandchildren will be able to live in the community, he said.

Housing prices in the Alexandria area are currently in the $350,000 to $400,000 range, but that could rise to $450,000 to $500,000 by the time they’re built, he added.

IHA Canada's first development

Glengarry Hills Village is IHA Canada’s first development. The project has been in the planning stages for four years and a ground-breaking ceremony for the development was held Sept. 8, 2022.

Monthly rental costs will range from about $1,500 to $2,500 depending on house size (about 800 to 1,500 square feet) and which health-care services package tenants choose. By contrast, “in Toronto, you’re looking at $7,000 to $10,000 monthly costs for retirement homes,” Khan said.

Given its affordability, “we believe this is a community that people will go to. We think the economics can work and continue for generations.”

Although the retirement community is near the Glengarry Memorial Hospital, plans include a medical building that will offer everything from X-rays to bloodwork. A community centre is also to be built.

Houses will be built on one level and will be wheelchair accessible, with infrastructure to allow for mobility assistance as required and smart home technologies.

Although retirement home operators have been in contact, Khan said the retirement community will be managed internally. 

He said the IHA Canada name may be rebranded. “Verona is one name that’s being bantered about (because the brand is known in the GTA.)"

Khan said other affordable retirement communities are being considered within a 30- to 45-minute drive of both Montreal and Halifax.

“Our goal is to replicate what we have in Alexandria outside of Montreal and Halifax, in communities that welcome retirement living.”