Major Acquisition by Groupe HD and Fondaction to Enable Development of 1,200 New Residential Units in Montréal's East End

MONTRÉAL, June 2, 2025 /CNW/ - Groupe HD and Fondaction have finalized a major partnership for the acquisition of a strategically located site exceeding 210,000 square feet at 5600 Sherbrooke Street East, in the heart of the Mercier–Hochelaga-Maisonneuve borough.

"This acquisition marks one of the most significant and promising transactions to date for our organization. We are deeply grateful to our partner Fondaction for their trust and support in making large-scale projects like the Sherbrooke Street development tangible and concrete." said Thomas Dufour, Co-President of Groupe HD.

Spanning from Sherbrooke Street to Chauveau Street, the expansive site will host an integrated residential development of nearly 1,200 units, representing a total investment of over $425 million. Aligned with the City of Montréal's Assomption Nord Urban Planning Program (PPU), the project will promote inclusive residential diversity, high-quality green spaces, and thoughtful urban densification—contributing meaningfully to the area's revitalization.

More than 15% of the units—approximately 180 homes—will be affordable housing, and the development will pursue LEED Gold certification for its environmental sustainability.

The project will unfold in two main phases to ensure a cohesive and gradual integration into the urban fabric. It will be executed by Construction Praxis, Groupe HD's construction division, recognized for its large-scale execution capabilities, performance-driven mindset, and innovative approach.

"Fondaction is proud to partner with Groupe HD to advance the revitalization and densification of this strategic area in the East of Montréal. Anchored in a sustainable mobility network, this flagship project promotes inclusive residential diversity and aims for LEED Gold environmental certification. It aligns fully with our real estate investment strategy focused on sustainability," explained Chad Ruel, Senior Director, Real Estate Investments at Fondaction

This partnership between Groupe HD and Fondaction reflects a shared vision: to create meaningful, sustainable, and accessible living environments. The project aims to address the present and future needs of local communities while shaping an urban landscape that lives up to collective aspirations.

Project Overview
Investment: $425 million
Developer: Groupe HD
Financial Partner: Fondaction
Lender: Desjardins – Real Estate Financing Group
General Contractor: Construction Praxis
Architecture & Design: NEUF Architect(e)s
Landscape Design: BC2

About Groupe HD
Groupe HD is a Quebec-based company specializing in real estate investment, development, construction, and management. The firm is committed to redefining tomorrow's housing by designing and delivering large-scale projects that meet the needs of communities and municipalities. To date, the company is involved in over 20 projects, totaling more than 7,000 residential units, including condominiums, rental buildings, and private seniors' residences. Groupe HD continuously rethinks and adapts its practices to create integrated living environments for today and future generations. Backed by a team of 60 professionals, the company currently manages over $3.0 billion in assets.

For more information, visit groupehdimmobilier.ca or follow us on LinkedIn.

About Fondaction
A forerunner for over 25 years, Fondaction is the investment fund for individuals and companies that are mobilizing for the positive transformation of Quebec's economy, making it fairer, more inclusive, greener and more performant. As a labour-sponsored fund created at the initiative of the CSN, Fondaction represents tens of thousands of savers and hundreds of companies committed to helping Quebec progress. It manages more than $3.99B in net assets, as at November 30, 2024, invested largely in hundreds of businesses and on the financial markets, prioritizing investments that generate positive economic, social and environmental spinoffs in addition to a financial return. Fondaction helps maintain and create jobs, reduce inequalities and combat climate change.

For more information, visit  fondaction.com or our LinkedIn page.

SOURCE Groupe HD