Dream, Fengate JV on Brookfield’s Las Vegas Hard Rock

Dream, Fengate JV on Brookfield’s Las Vegas Hard Rock

English business magnate Richard Branson’s Virgin Hotels, along with an investor group that includes Fengate Real Asset Investments, Dream Hard Asset Alternatives Trust (DRA-UN-T), Cowie Capital Partners, and other private investors is acquiring the 1,506-room, 800,000-square-foot Hard Rock Hotel & Casino in Las Vegas from Brookfield Asset Management (BAM-A-T). The price has not yet been disclosed. Brookfield acquired the property in March 2011 for $207 million US.

CoStar Group

B.C. assets caught up in high-profile Chinese fraud case

Chinese authorities say the former chairman of Beijing-based Anbang Insurance Group defrauded mom-and-pop retail investors of more than US$10 billion which the company used to buy trophy assets overseas, including prime office towers in downtown Vancouver and a major B.C. seniors’ care company. The allegation puts these B.C. deals, which each exceeded $1 billion, into the world of what is emerging as one of China’s biggest financial crime trials.

Vancouver Sun

TorQuest announces merger of Amenity, Rubicon pharmacies

Private equity investor TorQuest Partners announced Monday Amenity Holdings Inc., will merge with “complementary retail pharmacy platform” Rubicon Pharmacies Canada Inc. The new entity will operate under the Rubicon name, and will own and operate 101 pharmacies across Western Canada. Michael Wright, CEO of Rubicon, will lead the combined entity.

Property Biz Canada

Waterloo Region CRE market hot on all fronts

The Waterloo Region is experiencing an unprecedented building boom which could result in $1.2 billion worth of building permits issued this year, according to Karl Innanen, Colliers Canada’s managing director for the region. “It’s a very diverse economy that’s growing quickly. A lot of that is owing to a low cost of living relative to the Greater Toronto Area (GTA),” Innanen told RENX.

Property Biz Canada – Property Biz Canada

Fiera buys Kanata office properties for $74.1M

Canadian asset manager Fiera Properties Ltd. is expanding its real estate footprint in the National Capital Region through its purchase of four Kanata office buildings, including the leased home of BlackBerry | QNX. The Altus Group reported that 3000 and 3001 Solandt Rd., 450 March Rd. and 1001 Farrar Rd. sold for $74.13 million. The properties were previously managed by Morguard (MRT-UN-T) on behalf of the Healthcare of Ontario Pension Plan (HOOPP).

Ottawa Business Journal

First Capital Realty sells interests in two portfolios

First Capital Realty (FCR-T) has closed on the sale of 24 income and development properties in two separate transactions valued at $364 million. The bulk of the transactions involve 18 properties held in a joint venture with Main and Main Urban Realty. The other sale involves a 50.5 per cent transfer of a non-managing interest in six London, Ont., retail properties to a “major institutional investor.”

Property Biz Canada – Property Biz Canada

Summit acquires Ontario warehouse for $14.9M

Summit Industrial Income REIT (SMU-UN-T) announced Wednesday afternoon it has waived conditions and will acquire 100 per cent of a distribution warehouse totalling 141,034 square feet of gross leasable area in Stratford, Ont. The building is leased to Samsonite Canada under a 12-year lease with contractual lease escalations. The REIT will pay $14.9 million for  the brand new, build-to-suit facility with 36-foot ceiling heights and the potential for future expansion.

Canada Newswire

Brookfield sweetens bid to take over U.S. mall owner GGP

Brookfield Property Partners (BPY.UN-T) has added about US$2 billion to its offer to purchase GGP Inc., and says it now has a definitive agreement to acquire all outstanding shares of the U.S. mall owner which it does not currently own. Based on Brookfield’s estimate of 61 per cent cash and 39 per cent in equity, the acquisition is valued at about $15 billion.

Property Biz Canada – CoStar Group

Timmins developer plans Kanata Wingate By Wyndham hotel

Another new hotel is being proposed in west Kanata. Timmins-based Boreal Hospitality Group has filed a site plan application with the city for a four-storey, 121-room hotel at 8600 Campeau Dr., across from the Tanger Outlets shopping centre. Renderings in the proposal show the property branded as a Wingate By Wyndham, a chain of independently owned hotels that are primarily geared to business travellers.

Ottawa Business Journal

OMERS startup accelerator expanding to Ottawa, Vancouver

OneEleven, the Toronto-based technology startup accelerator backed by OMERS Ventures, is expanding to Ottawa and Vancouver this year, and aims to open in Boston and in Europe soon after. OneEleven provides services and office space to small technology companies with several million dollars in revenue or funding and are poised to grow. It was created in 2013 by OMERS Ventures, the provincial government’s Ontario Centres of Excellence; and Ryerson University.

Globe and Mail

HBC to hand over Manhattan office lease to Jay Suites

Hudson’s Bay Co (HBC-T) has agreed to hand over the remaining lease of its Manhattan office building to co-working space provider Jay Suites, the latter’s president Juda Srour told Reuters on Thursday.  The 90,000-square-foot, 12-storey building is next to the Lord & Taylor store property Jay Suites rival WeWork Co bought last year from HBC, Srour said. The asking rent is $45 US per square foot, Srour said.

Reuters – Financial Post – Globe and Mail – Bloomberg

N.A. warehouses worth more than offices, thanks to Amazon

While China slams the brakes on buying trophy properties and the retail apocalypse draws nigh, something less sexy but striking is going on in real estate.  Warehouses are now worth more than office buildings. Giant, high-tech warehouses, to be precise. These “big box” affairs are defined as having at least 200,000 square feet and 28-foot ceilings, in a report by Colliers International Group Inc.

Bloomberg – Windsor Star

Firm Capital announces senior management changes

Firm Capital Mortgage Investment Corporation (FC-T) announced Jonathan Mair, who since 1999 has served as chief financial officer, will effective immediately assume the role of executive vice-president and chief operating officer. Assuming the role of CFO is Boris Baril, who joined Firm Capital in August 2017 as group CFO. Sandy Poklar, who currently serves as COO, is appointed executive vice-president and managing director, Finance.

Globe Newswire

Dollarama plans Montreal expansion; founder steps down

Dollarama Inc. (DOL-T) beat Bay Street profit forecasts yet again in its latest quarter and said it will expand plans for its Montreal distribution centre and propose a three-for-one share split. The company also announced founder Larry Rossy is stepping down from the board, to be replaced as chairman by lead director Stephen Gunn. He will be given the title chairman emeritus and provide advice as needed.

Globe and Mail – Financial Post – CBC – Canada Newswire

Zibi adds veteran Stan Humphreys to Dream team

In three decades in the leasing business, Stan Humphreys has had a front-row seat to witness the evolution of Ottawa’s CRE market. In all that time, he says, he’s never seen anything quite like Zibi, a $1.2-billion mixed-use development. Last month, Humphreys signed on with Toronto-based developer Dream Unlimited (DRM-T) – one of two main partners in the project along with Ottawa’s Windmill Development Group.s.

Ottawa Business Journal

Featured Column

What’s missing in Saskatchewan gov’t asset sale discussion

The discussion regarding crown participation in the private sector surfaced again recently. A news story was published stating the Saskatchewan government was considering the sale of Innovation Place’s Saskatoon campus to the University of Saskatchewan and its Regina business park to the University of Regina.

Read more

Real Estate Companies

Cushman & Wakefield interviews advisers for IPO

Cushman & Wakefield Inc., the century-old real estate brokerage giant backed by private equity firm TPG, is interviewing advisers to help take the company public, according to sources. The company could have an initial public offering as soon as this year. Cushman & Wakefield began holding informal meetings with banks last year about a listing, with any decision to be based both on the company’s performance and market conditions.

Bloomberg

SpruceLand dissolution now set for 2019

SpruceLand Properties Inc. Thursday announced it anticipates being in a position to complete its dissolution in 2019. Originally, it had anticipated being able to complete its dissolution in 2018 but it now appears to dissolve before 2019 may be disadvantageous to the corporation from a tax perspective. There is uncertainty as to the amounts involved as the corporation requires clearance certificates from Canada Revenue Agency and from the Province of Alberta.

Canada Newswire

REOC Financial Reports

Latest financial results:

* Dundee Corporation, (DC-A-T), Globe Newswire

* StorageVault Canada Inc., (SVI-X), Globe Newswire

* Trez Capital Mortgage Investment Corporation, (TZZ-T), Canada Newswire

* Trez Capital Senior Mortgage Investment Corporation, (TZS-T), Canada Newswire

REIT Financial Reports

Latest financial results:

* Partners REIT, (PAR-UN-X), Globe Newswire

* PROREIT, (PRV-UN-X), Globe Newswire

Real Estate Investment Trusts

Fronsac acquires Gatineau retail property

Fronsac Real Estate Investment Trust (GAZ-UN-X) Thursday announced the acquisition of a property located in Gatineau, Que. The property is a retail store operated by Staples Canada under the Bureau en Gros banner and was acquired under a sale and lease-back agreement with Staples Canada. Total consideration paid for the property was $7,500,000 (excluding transaction costs) and was settled in cash, representing a 6.5% capitalization rate.

Globe Newswire

Aimbridge Hospitality to assume AHIP hotel management

American Hotel Income Properties REIT LP (HOT-UN-T) today announced Aimbridge Hospitality, a leading U.S.-based hotel management company, has entered into a binding agreement with ONE Lodging Management to assume the hotel management responsibilities for all of AHIP’s 115 hotels.  Aimbridge’s assumption of management responsibilities is expected to take place by the end of April 2018, and the transaction is subject to customary closing conditions.

Canada Newswire

PIRET receives court approval for Blackstone takeover

Pure Industrial Real Estate Trust (AAR-UN-T) announced the Supreme Court of British Columbia has issued a final order approving its previously-announced plan of arrangement, pursuant to which an affiliate of Blackstone Property Partners, the Core+ real estate investment unit of Blackstone (BX-N), will acquire all of the issued and outstanding trust units of the trust for $8.10 per Unit in cash.

Canada Newswire – Property Biz Canada

LaSalle Hotel Properties rejects Pebblebrook takeover bid

LaSalle Hotel Properties (LHO-N) said its board of trustees unanimously rejected an unsolicited merger proposal from Pebblebrook Hotel Trust (PEB-N), saying the bid undervalues the company.  Pebblebrook offered to acquire all outstanding shares of LaSalle in an all-stock transaction implying an offer price of about $30 a share. Pebblebrook said a combination of the two Bethesda, Md.-based REITs would create a “clear leader in the lodging REIT sector.”

CoStar Group

Retail

Costco relocating to Plaza’s The Shoppes at Galway

Plaza Retail REIT (PLZ-UN-T)  and its joint venture partner DewCor announced they have concluded a land transaction with Costco Wholesale Canada Ltd. (COST-Q) in The Shoppes at Galway outdoor retail centre in St. John’s, N.L. Part of a 2,400-acre master-planned community, the Shoppes at Galway comprises more than 700,000 square feet and is Atlantic Canada’s largest retail project currently under development.

Canada Newswire – The Telegram – Property Biz Canada

Debt is killing Toys ‘R’ Us and other retailers: Analysis

After a slew of bankruptcies among iconic retailers in recent years, blame has been aimed at online sellers such as Amazon. However, in Toys “R” Us’s case, the first steps toward its own downfall seem to have been taken in 2007, when it was taken private in a leveraged buyout from three firms who specialize in such things: Bain Capital, KKR & Co. and the ominously named Vornado Realty Trust.

CBC – Financial Post

H&M’s pile of unsold garments grows as earnings plunge

Swedish fashion retailer Hennes & Mauritz AB (HNNMY) said it’s increasing markdowns this quarter after accumulating a record pile of unsold garments worth more than $4 billion US. Operating profit fell 62 per cent to the lowest level in more than a decade as clearance sales failed to reduce quantities of T-shirts and jeans customers had passed over. The stock slumped to the lowest level since 2005.

Bloomberg

Cannabis industry news

CanniMed CEO Brent Zettl resigns

CanniMed Therapeutics (CMED-T), which is being acquired by Aurora Therapeutics, said chief executive officer Brent Zettl has resigned. Aurora Therapeutics senior vice-president Andrċ Jérôme, previously tasked with heading the acquisition of CanniMed, will serve as interim CEO. Aurora is almost set to close the purchase of CanniMed, creating the world’s most valuable weed firm after months of tensions between the companies.

Reuters – Financial Post

Renovation and Restoration

Frank Gehry selected to design Colburn School Expansion

The Colburn School has selected Toronto-born Frank Gehry to join the all-L.A. team for the campus’s downtown Los Angeles expansion. The project will add three performance venues, an outdoor performance area, classrooms, a dance rehearsal center, and student and guest artist housing. The largest of the new venues will be the 1,100-seat concert hall, the Colburn School’s first venue for full-scale orchestra performances.

Building Design & Construction

Technology

Walmart drones may tend the farms

Walmart Inc’s (WMT-N) patent filings hint it may see a future where farmers use its drones to not only spot crop problems but selectively apply chemicals or even disperse pollen. The world’s largest retailer applied for six patents last year on drones that aim to prevent damage to crops, control pest attacks on farms and cross-pollinate plants, according to U.S. Patents and Trademark Office documents.

Reuters

Other

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