Assembly Gains $5 Million Credit Line to Boost Prefabricated Housing in Toronto Area

Assembly Secures $5 Million Credit Facility for Prefabricated Housing

Assembly Corp. has recently announced a significant development in its ongoing efforts to address the housing crisis in Canada. The company has successfully secured a credit facility of $5 million from PaceZero Capital Partners. This funding is intended to facilitate Assembly's various prefabricated housing projects across the Greater Toronto Area (GTA).

Addressing Housing Shortages

With rising populations and increased demand for affordable housing, Canada has been experiencing a pressing need for accessible and sustainable homes. Jordan Peckham, Founder and CEO of PaceZero, highlighted the importance of partnerships in addressing this issue: "Canada needs to increase the availability of quality, affordable homes. By working with innovative partners like Assembly and The Atmospheric Fund (TAF), we're excited to bring new technologies and production processes to market."

Innovative Construction Methods

Founded in 2017 and located in Toronto, Assembly specializes in modular prefabricated timber construction, which allows for the efficient delivery of sustainable and well-designed low and mid-rise residential buildings. Assembly provides a comprehensive solution to its clients that encompasses design, permitting, offsite fabrication, and rapid onsite assembly. This approach not only streamlines the development process but also supports the creation of high-quality, affordable housing.

The CEO of Assembly, Geoff Cape, remarked on the transformative potential of partnerships like the one with PaceZero and TAF. He stated, "Partnerships like this enable real change in how Canada delivers housing. With the support of PaceZero and TAF, we're scaling an approach that marries speed, sustainability, and community benefit. This credit facility allows Assembly to bring more affordable, low-carbon housing to the Greater Toronto Area – supporting people, municipalities, and the environment."

The Growing Momentum of Modular Housing

The modular housing industry in Canada is gaining considerable traction, aided by various municipal, provincial, and federal initiatives aimed at solving the urgent need for affordable housing solutions.

Assembly employs a repeatable system that utilizes a standardized kit of parts, which are fabricated off-site and then assembled at the desired location. This practice enhances efficiency, reduces construction time, and minimizes environmental impact. With the ability to offer predictable costs and speedy delivery of housing projects, Assembly stands out in the current housing market.

TAF's Involvement

TAF, an early investor in Assembly, has entered into a risk-sharing agreement with PaceZero due to the high greenhouse gas reduction impacts stemming from Assembly's construction methods. Kristian Knibutat, VP Impact Investing at The Atmospheric Fund, shared insights on their strategy: "We're always seeking ways to 'crowd in' private investment into low-carbon development. A partial loan guarantee is an excellent way for us to help catalyze this promising industry. Fast, affordable, and low-carbon – this is the way Canada should be building homes."

Conclusion

The collaboration between Assembly Corp. and PaceZero Capital Partners marks a significant step toward creating innovative and sustainable housing solutions in Canada's largest urban center. With the support of TAF, Assembly is poised to expand its reach and impact, paving the way for a future where affordable housing is accessible to all. This development reflects the urgent need for strategic partnerships aimed at delivering solutions for a pressing societal challenge while also considering environmental sustainability.