B.C. health care campus plan calls for CRE

B.C. health care campus plan calls for CRE

A rezoning application dealing with the plan to build the new St. Paul’s Hospital and health care campus on an 18.4-acre site in False Creek Flats goes to an open house Nov. 20. The proposal is to change the industrial district designation on properties to allow for a mixed-use development. The proposal features commercial, office, hotel, institutional and limited residential uses that provide a variety of health-related support functions.

Vancouver Courier

Firms hunt for elusive GTA warehouse space

Kubota Canada Ltd. had to look farther afield to find the space it needed as it ran out of room for its growing head office and warehousing needs. The tractor and heavy-equipment maker announced it’s moving from Markham, where it’s been located since 1975, to a more affordable site in the Pickering Innovation Corridor along Highway 407 in the Durham region at the eastern fringe of Toronto.

Globe and Mail

Experiential retail, pop-ups benefit shopping malls

Shopping centres, stores and brands which want to create better connections with customers should incorporate experiential retail strategies, including pop-up events. This was the message from pop-up go founder and chief connector Linda Farha during a presentation during the recent International Council of Shopping Centers’ Canadian convention. Farha’s firm provides an online meeting place bringing together organizations which want to host or execute pop-ups with appropriate spaces.

Property Biz Canada

Imperial Oil gives green light to new $2.6B oilsands project

Imperial Oil Ltd. (IMO-A) said Tuesday it would go ahead with the construction of its $2.6 billion Aspen project in northern Alberta, the first new oilsand development to be green-lighted since 2013. The Calgary-based company, which is majority owned by Exxon Mobil, said it would start construction on the 75,000-barrel-per-day project in the fourth quarter of 2018 with first output expected in 2022.

Reuters

Calgary considers task force for ‘tax shift’ problem

A Calgary committee is recommending the creation of two task forces to deal with a looming property tax crisis which, if left unchecked, could result in some businesses facing 30 per cent tax increases in 2019. The task forces would be an attempt to deal with the impact of $12.6 billion in property value lost out of the downtown since the recession began in 2015.

Calgary Herald – Calgary Herald – CBC

Vancouver large industrial land users look east

Vancouver might be Canada’s biggest West Coast port, but its industrial space is shrinking, not only in quantity but in scale. CBRE Ltd. reports there were eight land transactions, totalling 83 acres, in Q3. Three of them, representing 70 per cent of the total acreage, took place in Abbotsford. Meanwhile, absorption in Metro Vancouver during the first nine months of the year totalled 2.3 million square feet.

Business In Vancouver

New Surrey mayor, city council cancel LRT plans

Immediately after being sworn in to their new positions on Monday, new Surrey mayor Doug McCallum and the city’s new councillors voted unanimously to cancel the planned Surrey-Newton-Guildford light rail transit (LRT) project. Instead of the LRT, McCallum and council announced plans to work on extending the SkyTrain network from King George station to Langley City.

Business In Vancouver – CBC – CBC

Reasons not to sell your apartment building

GUEST COLUMN: As brokers who match buyers and sellers of apartment buildings, we run into many objections to selling from owners during our prospecting. Sometimes it’s just not the time to sell and we respect that. But even when it is time to sell, there are still questions we hear consistently, which we answer fairly and honestly.

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Parliament Hill Centre Block renovation flies under radar

By the end of 2018, the doors to Centre Block will close for at least a decade of sorely needed rehabilitation. Ottawans have missed the forest for the trees on this looming project. There seems to have been precious little public or parliamentary scrutiny of what exactly is going to happen when the doors close and the renovation work begins.

Ottawa Citizen

Amazon plans to split HQ2 between two U.S. cities: Sources

After conducting a yearlong search for a second home, Amazon (AMZN-Q) is finalizing plans to have 50,000 employees in two locations, according to sources. The company is nearing a deal to move to the Long Island City neighborhood of Queens. Amazon is also close to a deal to move to the Crystal City area of Arlington, Va., a Washington suburb. Toronto is the only Canadian city among the 20 finalists.

Financial Post – Toronto Star – Wall Street Journal

SHARC’s wastewater heat recovery breaks into hotel sector

Alberta’s Lake Louise Inn is the world’s first hotel to install SHARC International Systems Inc.’s Piranha wastewater heat recovery system. “They’re always trying to be greener and more energy-efficient and more environmentally sensitive,” said SHARC chief executive officer and chairman Lynn Mueller of Atlific Hotels, which manages Lake Louise Inn and more than 55 other hotels.

Sustainable Biz Canada

Home decor chains Bowring, Bombay declare insolvency

Home interior and decor chains Bowring and Bombay have declared insolvency. According to documents, Bowring Canada and Bombay & Co., Inc., along with parent company Fluid Brands Inc., have obtained protection from creditors under the Bankruptcy and Insolvency Act. In Canada, there are 43 Bombay stores and 38 Bowring stores,  range in size from 2,000 to 6,000 square feet.

Toronto Star

Dollar Tree’s $9B problem: Family Dollar isn’t paying off

Dollar Tree Inc. (DLTR-Q) won a hard-fought battle to buy Family Dollar more than three years ago, beating out Dollar General Corp. (DG-N) for the roughly 8,200-store chain that caters to low-income shoppers. Now, Dollar Tree executives are trying to prove the nearly $9 billion cash-and-stock purchase wasn’t a mistake.

Toronto Star

Firm Capital acquires $29.5M NYC multi-family portfolio

Firm Capital American Realty Partners Corp. (FCA-U-X) Monday announced a $29.5-million New York City acquisition. The company entered into a joint venture with SBT Property to acquire the Tinton portfolio, a 132-unit multi-family residential portfolio comprised of three buildings located in New York City. The Tinton portfolio is being acquired for approximately $25.9 million (including transaction costs), representing a 5.8% going-in capitalization rate or $223 per square foot.

Canada Newswire – Property Biz Canada

PSP, Tishman Speyer sell Paris office property

The Public Sector Pension Investment Board, one of Canada’s largest pension investment managers and Tishman Speyer, one of the world’s leading owners, developers, operators and fund managers of first-class real estate, today announced the sale of Tour Pacific to Société Générale Insurance for an undisclosed amount. PSP Investments and Tishman Speyer acquired the 570,000-square-foot office building, located in Paris’ La Défense business district, in 2013.

Canada Newswire – IPE Real Assets

Featured Column

Sask. cities enjoy lowest CRE to residential tax ratios

There is lots of chatter on the street with the recently released preliminary budget from the City of Saskatoon, which proposes a 4.5 per cent property tax hike in 2019. That chatter is incomplete without stepping back and looking at a couple of key issues.

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Market Trends and Research

Volatile markets a good sign: Bank of Canada

Market volatility, a stronger U.S. dollar and higher yields for long-term bonds are signs markets are becoming more normal, rather than an indication of trouble, Bank of Canada Governor Stephen Poloz said Monday. Poloz, speaking to a business audience, pushed back against critics who complain economic forecasts – including those from the Canadian central bank – are too optimistic given recent equity market turbulence.

Reuters

Real Estate Companies

Home Capital Group shares soar

Shares of Home Capital Group (HCG-T) surged as much as 25 per cent after the alternative mortgage lender beat profit expectations for the third quarter. The Toronto-based company reported net income of $32.6 million US during the three months ended Sept. 30, up from $30 million year-over-year. Home Capital says the profit amounted to 41 cents per diluted share in its third quarter, compared with 37 cents during the same period in 2017.

Toronto Star – Business Wire

REOC Financial Reports

Latest financial results:

* Brookfield Real Estate Services, (BRE-T), Canada Newswire

* Dream Hard Asset Alternatives Trust, (DRA-UN-T), Globe Newswire

* Firm Capital Property Trust, (FCD-UN-X), Canada Newswire

* First Capital Realty Inc., (FCR-T), Canada Newswire

* Melcor Developments Ltd., (MRD-T), Globe Newswire

* Temple Hotels Inc., (TPH-T), Canada Newswire

REIT Financial Reports

Latest financial results:

* BTB REIT, (BTB-UN-T), Canada Newswire

* CAPREIT, (CAR-UN-T), Globe Newswire

* CT REIT, (CRT-UN-T), Canada Newswire

* Dream Industrial REIT, (DIR-UN-T), Globe Newswire

* Granite REIT, (GRT-UN-T), Canada Newswire

* Northview Apartment REIT, (NVU-UN-T), Globe Newswire

* Pure Multi-Family REIT, (RUF-U-X), Canada Newswire

* Slate Office REIT, (SOT-UN-T), Business Wire

* Summit Industrial Income REIT, (SMU-UN-T), Canada Newswire

* WPT Industrial REIT, (DIR-UN-T), Globe Newswire

Real Estate Investment Trusts

InterRent overvalued and strong candidate to sell

InterRent REIT‘s (IIP-UN-T) stock has performed very well recently, posting a 21 per cent return over the past six months while the S&P/TSX Composite has lost six per cent in the same period. It also has the lowest earnings-quality score, driven in part by more than a 25 per cent increase in what are being classified as “other non-current assets” on its third-quarter balance sheet compared with a year ago.

Globe and Mail (Subscription required)

Legal Corner

Numbered company suing over scuttled Richmond deal

A numbered company is suing First Richmond Shopping Centres Ltd. and Modern Kunyuan Commercial Holdings (Canada) Ltd., two firms affiliated with Vancouver developer Raymond Li, for scuttling a $4 million real estate deal involving four properties in Richmond. In a notice of civil claim filed in BC Supreme Court, 1151410 B.C. Ltd. claims the defendants agreed to sell four parcels of land in Richmond, B.C.

Business In Vancouver

Retail

Mountain Equipment Co-op CEO to step down

After 11 years at the top of the mountain, MEC’s leader is ready to climb down. David Labistour announced Tuesday he would resign as CEO of Mountain Equipment Co-op, the Vancouver-based outdoor equipment retail chain. He said the company is completing “a significant cycle of development” involving new technology, new product offerings and a general re-investment in the brand.

CBC

Winnipeg auto dealerships find room to grow

Bursting at the seams, Winnipeg’s original Subaru dealership, Frontier Subaru on Pembina Highway, is moving to the Waverley Auto Mall. At the same time, Frontier Toyota on Regent Avenue is building a new 45,000-square-foot dealership behind its current store. Jack Zheng, general manager of Frontier Subaru, and Kirk Cancilla, general manager of Frontier Toyota, said both locations are too small for the volume of sales.

Winnipeg Free Press

Restaurants and Eateries

Second Cup converting 2 Alberta cafés to cannabis dispensaries

The Second Cup Ltd. (SCU-T) says it has started a strategic review of the coffee chain company despite reporting improved financial results and is continuing on its plan to sell recreational cannabis. The company says its board recognizes the need for the chain to continue to evolve and it now has the capacity to support a broader range of strategic alternatives thanks to a strengthened balance sheet.

CBC – Canada Newswire

Cannabis industry news

Manitoba cannabis store first outlet on FN land

A new cannabis shop near the Manitoba-Saskatchewan border is set to be Canada’s first federally legal marijuana outlet on First Nations territory. The Meta Cannabis Supply Co. store in Opaskwayak was scheduled to make its first sale Wednesday afternoon. The store is leasing space in the Otineka Mall, owned by the Opaskwayak Cree Nation, and is located just across the Saskatchewan River from The Pas.

Winnipeg Free Press – Calgary Herald

Canopy Growth will spend $25M to lease St. John’s site

Financial filings with securities regulators shed light on the lease arrangement between Canopy Growth and a provincially registered numbered company that owns the site of a planned cannabis production facility in St. John’s. Over the past week, the Opposition Tories have questioned the Ball government about the numbered company that is now listed as owner of the land, and what type of deal it has with Canopy.

CBC

Infrastructure

GTAA reports strong commercial revenues in Q3

The Greater Toronto Airports Authority Tuesday reported passenger activity increased 5.4 per cent during the first nine months of 2018 year-over-year. This growth reflects increased aircraft load factor and flights on existing routes, larger aircraft, the economic strength of the Greater Toronto Region, and the role of Toronto Pearson International Airport as Canada’s largest airport and North America’s second busiest airport in terms of international passengers.

Canada Newswire

Other