Kingdom Development Breaks Ground on 40-Storey Toronto Rental Tower With $165 Million in CMHC Financing

Kingdom Development Inc. celebrated the groundbreaking of The Bull Tower on October 16, a 40-storey purpose-built rental development at 128 Peter Street in Toronto's Entertainment District. The project is supported by $165 million in federal financing through the Canada Mortgage and Housing Corporation's (CMHC) Apartment Construction Loan Program (ACLP) and will deliver 370 rental homes, the firm announced.

Kingdom Development Marks Groundbreaking With Federal and City Officials

The ceremony was attended by Chi Nguyen, Member of Parliament for Spadina–Harbourfront, and Olivia Chow, Mayor of Toronto, along with representatives of Kingdom Development and the project team.

Nguyen said: "Through the ACLP, we are taking action to increase the supply of new rental housing by investing $165 million in the construction of 370 new homes in our community. This is about more than constructing homes, it is about creating opportunities for individuals and families to put down roots, thrive and contribute to a stronger, more inclusive Toronto where everyone can feel at home. This project will create much-needed rental homes at the heart of Toronto's thriving entertainment district."

Jason Yang, CEO of Kingdom Development Inc., said: "The Bull Tower represents an important milestone in Kingdom's commitment to creating high-quality rental homes in downtown Toronto. We are proud to work alongside the Government of Canada, CMHC, the City of Toronto, and our project partners to help address the city's growing housing needs."

Canada Mortgage and Housing Corporation Financing Details

The $165 million in construction financing from the Canada Mortgage and Housing Corporation comes through the ACLP, a federal program intended to accelerate purpose-built rental construction. The financing is a fully repayable, low-cost construction loan rather than a grant. Across the project's 370 homes, the financing works out to roughly $445,946 per unit.

Unit Mix, Affordability and Amenities at The Bull Tower

The Bull Tower will feature studio, one-bedroom, two-bedroom and three-bedroom suites. Of the 370 homes, 111, or 30% of the total, will be affordable rental units. More than 35% of the suites are designed to accommodate families, and 62 homes will be barrier-free. The development will also include approximately 16,500 square feet of indoor amenity space.

The project is designed to meet Tier 3 of the National Energy Code of Canada for Buildings (NECB) 2020. Planned features include water-source heat pumps, energy recovery ventilation and high-efficiency mechanical systems.

Market Context: Rental Construction Gains Ground in Toronto

The Bull Tower is part of a broader federal and municipal effort to restart rental projects delayed by financing conditions. In August, the federal government and the City of Toronto announced more than $2.7 billion for over 18 housing projects, targeting more than 5,600 rental homes over three years. That initiative included over $1.8 billion through the ACLP for nine private-sector projects producing more than 3,700 rental homes, more than 1,000 of them designated as affordable.

High borrowing costs, elevated construction expenses and weaker condominium sales have made many Toronto projects difficult to launch. CMHC reported that Toronto-area rental apartment starts rose 82% year over year in the first half of 2026, and rental starts exceeded condominium starts in the City of Toronto for the first time this century. CMHC has estimated that Toronto requires approximately 21,000 to 26,000 housing starts annually to address long-term affordability and supply needs, and has warned that elevated completions may provide only temporary relief, as weaker starts and a shrinking inventory of permitted units awaiting construction could produce a future supply shortfall.

The project's location near transit, parks and entertainment venues supports an urban-rental positioning. Kingdom Development said it remains committed to delivering rental housing as construction moves forward.

Sources

• Kingdom Development Inc.: Kingdom Development Celebrates Groundbreaking of The Bull Tower