Mohammad Kian is a staunch advocate of green initiatives. The real estate developer has transformed several contaminated grounds into liveable spaces that house well-developed real estate properties. Staying true to his vision of sustainability in project development, his company, Magma Development, has spearheaded several financeable projects that add value to the communities they are in. The president of Magma Development spoke with us about sustainable real estate development, affordable housing in Ontario, and some of the most challenging projects he has undertaken.
Could you share your personal background and how you started your first business?
After graduating from the University of Waterloo with a degree in Chemical Engineering, I continued with a Master’s degree at the same university. My first job was a process engineer at a PCB (Printed Circuit Board) manufacturing company. During my time there, I identified a niche and innovative opportunity within the PCB industry—one that used a completely different technology and base substrates to meet the growing demand for miniaturized electronic products, particularly in the medical and telecommunications sectors. This idea inspired me to launch my own company, Circoflex Corp., in 1998 to manufacture flexible PCBs. I ran the company until 2022, and over the years, it became one of the most well-known flexible PCB manufacturers in North America. Our first customer was Research in Motion (BlackBerry), which helped establish our reputation.
What inspired you to pursue a career in real estate development?
While working in PCB manufacturing, I dealt with various chemical components and processes. I became deeply concerned about their environmental impact. This interest led me to research and develop cost-effective systems to minimize and treat chemical waste. As I advocated for environmental cleanup of impacted properties, including soil and groundwater remediation, I came across several contaminated sites that needed cleanup. I began assisting property owners and eventually started acquiring some of these sites myself, launching an initiative I called “Greening Brownfields.” After remediation, these properties significantly increased in value and became ready for development. That’s when I formally entered the real estate sector in 2005.
How do you select locations for your investments, and what factors influence these decisions?
At Magma Development, our focus is on redeveloping Brownfield properties to create rental income streams in smaller communities where there is a major shortage of affordable rental housing. We strategically select locations across suburban Ontario that are in need of revitalization and have strong demand for affordable living options.
What are some of the notable projects undertaken by Magma Development?
One of our most impactful projects began in 2005 in Orillia, Ontario. It involved a heavily contaminated wartime building that had become an eyesore for the community. After demolition and full site remediation, we developed a gated community with over 330 units, including both market rate and affordable rental housing. Today, more than 700 residents call that development home—a testament to the transformation of a liability into a vibrant community asset.
From your perspective, what are the key factors behind your success in the industry?
Our entry into real estate was driven by an environmental mission— transforming contaminated “Brownfield” properties into clean, usable spaces. We’ve succeeded by staying true to that vision: turning public liabilities into sustainable developments. By focusing on meaningful, financeable projects that add value to communities, like converting a wartime contaminated site into a modern, energy-efficient building in the neighbourhood, we’ve built both trust and impact. Our business model is rooted in making a positive difference while ensuring economic viability.
How do you ensure that your projects incorporate affordable housing options?
The true definition of affordable housing is based on the Canada Mortgage and Housing Corporation (CMHC) rental rates or lower. Making such projects financially viable is a significant challenge for private developers. Public-private partnerships are essential to making these developments work.
For example, CMHC-insured financing has helped to reduce interest rates and support more affordable housing. Recent HST exemptions after occupancy permits (13 per cent savings) have eased some cost burdens. Some municipalities have waived development charges and permit fees—critical savings for affordability.
There’s growing advocacy for leasing government land for 99 years to lower upfront costs. Different levels of government are thinking of re-introducing multi-unit residential buildings (MURB) as an initiative to encourage more rental housing. Nevertheless, AI technology can help reform outdated systems and reduce architectural, engineering, and administrative costs. I believe AI will play a key role in streamlining architectural design, engineering, and municipal approvals—making the entire process more efficient. Despite these steps, a major gap still exists between construction costs and rental income cash flow. Meanwhile, a comprehensive approach from all levels of government is required to address the housing crisis.
Could you share a particularly challenging project you’ve worked on and how you overcame its obstacles?
One of our advantages was purchasing land over 15 years ago when prices were much lower, and the construction cost of rental development was also much lower. With those early investments, we were able to build quality rental units at a fraction of today’s cost. Advances in material science have also made construction more energy-efficient and cost-effective. Still, further innovation in materials and construction systems is needed to accelerate and reduce the cost of housing development. Nowadays, tariffs, such as those imposed by the Trump administration, have increased construction costs and created uncertainty. One of the most needed areas to improve is the outdated policies from the Landlord and Tenant Board; many are from the 1940s and 1950s, which can create a hostile environment for landlords by assuming fault without due process. These policies must be modernized to create fairness for both tenants and landlords.
What are your future goals to help address the housing demand and improve the housing situation in Ontario?
We currently have over 1,500 units to be developed as affordable rental units in the pipeline, but financial feasibility remains the primary challenge. We continue to advocate for collaborative solutions to bring these units to market in underserved communities. Emerging trends like prefabricated construction offer promising cost and time savings, but further innovation in building materials and methods is still needed to improve scalability. I believe that Ontario needs at least 200,000 affordable rental units in the next 10 years; this figure is more realistic and achievable, which is 20,000 units per year. Based on private and public parentship with less red tapes. Developers need a stable, supportive environment to respond effectively to the housing crisis. Our goal is to keep pushing forward with innovative, impactful, and sustainable housing solutions!
David Messiha | Staff Writer
