We Charity sold downtown Toronto properties, including its charity’s headquarters, for about $36m in a deal that included some losses.
It is a big win, or a loss, for the organization. The proceeds from the deal will be used to improve the Downtown Mission’s housing stock and grow its employee base. We’ve already donated $1.5m in rent for two years to support operations.
Building revenues fell to about $3.7m per year in 2018 as the Mission moved staff and donated $3.5m in rent for two years, said Charity President Peter Gibson. The charity relied heavily on donations and income from real estate development to pay rent and buy new equipment. During the property sale, $17m was used to pay off We Charity’s $33m in mortgages, while the charity’s debt stood at $9.5m.
It’s a net loss for the charity, which says it still made $5.6m in revenues in 2018 compared with $11.5m in 2017.
We Charity was able to sell three of its five buildings downtown because no one was interested in purchasing them. It reduced its debt from $38m to $8.4m through this deal, and replaced its mortgage with a loan from Fortress Investment Group.