Montreal’s $6.3-billion rail project to get underway

Montreal’s $6.3-billion rail project to get underway

Montreal’s biggest public transportation project in 50 years is officially in the starting blocks. Canada’s SNC-Lavalin Group Inc. and five partners will build it.  Now, its promoter, Caisse de dépôt et placement du Québec, has to prove it can run down the track. Construction of its electric-powered light-rail system, known as the Réseau Express Métropolitain (REM), will start in April.

Globe and Mail – Canada Newswire – Globe and Mail – CBC

GTAA awards transit centre design contract to HOK

The Greater Toronto Airports Authority (GTAA) has engaged HOK to design a regional transit centre and passenger processing facility at Toronto Pearson International Airport. The GTAA estimates the first phase of the new facility could be in place as early as the mid-2020s. HOK is a leader in sustainable, high-performance design and has led major aviation and transportation projects at some of the world’s most travelled international airports.

Canada Newswire

Cunningham replaces Bourbonnais as PSP Investments CEO

The Public Sector Pension Investment Board (PSP Investments) has a new man at the top. Effective immediately, Neil Cunningham has been appointed president and CEO, replacing outgoing Andre Bourbonnais, who is leaving to join BlackRock Alternative Investors. Prior to Wednesday’s appointment, Cunningham was senior vice-president, global head of real estate and natural resources at PSP Investments. 

Property Biz Canada

Vancouver industrial land shortage spurs price spike

One of the last frontiers of developable industrial land in Metro Vancouver is fetching prices up to double the assessed values as developers and businesses scramble to acquire disappearing space. One of the more recent sales at Campbell Heights North industrial zone involved a 1.72-acre serviced lot that sold in late November for $3.18 million, nearly twice its assessed value of $1.65 million, according to Colliers International.

Property Biz Canada – Business In Vancouver – Property Biz Canada

In Toronto’s land war, condo builders are better armed

With unrelenting demand and the deep pockets that brings with it, condo builders are consistently winning the contest for scarce building land in Toronto. “The price that residential developers can afford to pay for land has been rising very rapidly,” says Matthew Boukall, a senior director in the Altus Data Solutions team, because the price per square foot Toronto buyers are paying for finished condos is also rising rapidly.

Globe and Mail

Navigating the third leg of REIT valuations

For the relatively new two-person team of real estate investment analysts at Echelon Wealth Partners, the third leg in the valuation of the issuers they cover has arrived, a time characterized by a larger focus on interest rates. And, according to Frederic Blondeau and Stephane Boire. in that third leg, an issuer’s risk management strategy is the top priority when they assess the merits of the companies they cover.

Financial Post

R2 makes strides as online property investor marketplace

R2 Capital & Investments has undergone a significant evolution since launching just over a year ago as Canada’s first online marketplace to connect property owners and developers with investors. “. . . R2 has since evolved into a private equity firm that uses financial technology to scale capital raise — both debt and equity,” says R2 co-founder and chief executive officer Amar Nijjar.

Property Biz Canada

Ambitious plans would transform Edmonton mall site

Which major transformative project planned for Edmonton is most likely to succeed? The downtown arena district is the early leader. It will be hard to beat. But there’s a major new contender on the south side, a new vision for a residential and commercial development where Bonnie Doon Shopping Centre now sits. This project has a number of things going for it.

Edmonton Journal – Property Biz Canada

CIBC’s historic home could get a dramatic revamp

The coffee machine hisses and a barista places a cappuccino on the marble counter. It’s a familiar scene, except for the setting: The café is in the lobby of Commerce Court West in Toronto. It was designed by architect I.M. Pei in the 1960s as a temple of a banking hall: 112 square feet, 33 feet high, unsullied by columns or beams and washed by sunlight through plate glass.

Globe and Mail

Developer unveils another attempt at Château Laurier addition

Developers have unveiled new design plans for the Fairmont Château Laurier addition after the original plans sparked fury among Ottawa residents. The new addition to the hotel, which opened in 1912 and was declared a national historic site in 1980, will replace a crumbling five-storey parking garage set for demolition. The new plans consist of an eight-storey pavilion with 171 new guest suites.

CBC

Salesforce to add to Canadian real estate holdings

Salesforce (CRM-N) will invest $2.5 billion in its Canadian business over the next five years, the enterprise software company announced Thursday, the same day Justin Trudeau visited its Silicon Valley headquarters. The San Francisco-based cloud computing and customer relations management company said it will increase its head count, real estate footprint and data centre capacity to support its growing customer base north of the border.

Toronto Star – Canada Newswire

Northbridge Investment scoops up N.J. office complex

Toronto-based Northbridge Investment Management Inc. recently purchased the 264,000-square-foot office complex at 100 Enterprise Drive in Rockaway, N.J.. The seven-storey complex boasts a two-storey atrium, panoramic views from the top floors and a full-service cafeteria. It also has covered parking spots and is walking distance from the Rockaway Townsquare shopping center. Neither the purchase price nor the seller were disclosed.

Real Estate Weekly

China’s HNA reverses course with $4B selling spree

The troubled Chinese conglomerate HNA Group Co. is selling a raft of buildings across the U.S. as the once-voracious acquirer looks to cut its massive debt. Among the properties on the block is 245 Park Ave., in New York. HNA bought that skyscraper less than a year ago for $2.21 billion, one of the highest prices ever paid for a New York office building.

Bloomberg

Google forks out $2B for Chelsea Market building

NYC’s elite $2-billion club of trophy office buildings is gaining a new entrant. The property’s buyer, however, has been just outside the club door for some time. Google’s massive pending purchase of the Chelsea Market building at 75 Ninth Avenue would make the property the fifth in the history of Manhattan to cross the $2-billion threshold in an outright sale. The deal is expected to close in two months.

The Real Deal

Investors, developers flock to Indian industrial RE

India’s industrial real estate is quickly emerging as the go-to asset class for investors and developers. At the top of the list is Brookfield Asset Management (BAM-A-T), which has invested in residential and office real estate and is now evaluating opportunities in the industrial space. “Brookfield is looking to invest in logistics parks. It may invest in a company or buy the facility or park itself,” said a source.

Livemint

Market Trends and Research

CMLS Financial report examines mortgage spread compression

CMLS Financial, one of Canada’s largest, independently owned mortgage services companies, has released its latest Commercial Mortgage Commentary, an in-depth analysis of the commercial mortgage market in Canada. The company’s February 2018 commentary looks at compression in commercial mortgage spreads, the rising and flattening of the GOC yield curve in 2017, and activity in the CMBS and senior unsecured market.

Globe Newswire

B.C. and Airbnb reach tax collection deal

The British Columbia government says it will soon profit from the short-term rental market after reaching an agreement with Airbnb on the collection of taxes. The money will be used to fund housing and tourism initiatives. Finance Minister Carole James touted the deal with Airbnb as the first of its kind in Canada, saying it acknowledges short-term rentals are part of B.C.’s economy.

CTV – CBC – CBC – CBC

Real Estate Companies

CPPIB CEO urges long-term thinking amid unsteady markets

Market tumult over the past few weeks has the Canada Pension Plan Investment Board focused on the long term. CPPIB, manager of the Canada Pension Plan’s portfolio, posted a return of four per cent after factoring in all costs in its third fiscal quarter of 2018, which ended Dec. 31. During that period, total assets reached $337.1 billion, up from $298.1 billion in Q3 2016.

Globe and Mail – Reuters

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REOC Financial Reports

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* Brookfield Property Partners, (BPY-UN-T), Globe Newswire

Real Estate Investment Trusts

Plaza renews leases with two primary KFC tenants

Plaza Retail REIT (PLZ-UN-T) Thursday announced it has finalized lease renewals on 150,000 square feet or 62 sites with its two primary KFC operators. Stand-alone KFC restaurants are the REIT’s second largest tenancy by rent, and make up approximately 218,000 square feet. These two KFC operators have 81 sites and represent 90 per cent of Plaza’s total KFC square footage. 

Canada Newswire

Retail

HBC rejects Signa offer for its German operations

Hudson’s Bay Co. (HBC-T) says European retailer Signa Holding has withdrawn its offer for the company’s German operations following a unanimous decision by the Canadian retailer’s board of directors to reject the bid. HBC says Signa’s proposal was not in the best interest of its shareholders and significantly undervalued the overseas business. HBC acquired Kaufhof in 2015 as part of a $3.2-billion deal that included Belgium retailer Galeria Inno.

CBC

Amazon to roll out delivery at Whole Foods

Amazon (AMZN-Q) plans to roll out two-hour delivery at Whole Foods Market this year to those who pay for Amazon’s US$99-a-year Prime membership. The move is the latest by Amazon to put its stamp on its recent purchase of the organic grocer. Amazon has cut prices on bananas, yogurt and other items, and began selling Kindle e-readers in some of its 470 stores.

CTV – Business Insider – CNBC

Walmart makes push to capture elusive e-commerce profit

Walmart Inc (WMT-N) is asking vendors to supply it with more merchandise priced at $10 and up, as part of a major push to finally turn a profit at its online business, according to four sources. The new focus at the world’s largest retailer is on dry grocery products such as sauces, soaps and general merchandise items such as toys and home furnishings.

Reuters

Canada Goose takes market beating despite record earnings

A double-digit jump in third-quarter sales and earnings didn’t prevent Canada Goose Holdings Inc. (GOOS-T) from taking a double-digit dive on the markets Thursday when the company maintained its forecast for 2018 rather than increasing it. Canada Goose CEO Dani Reiss is quite content to expand the luxury parka maker’s business methodically, he made clear Thursday, despite an overt investor desire for rapid and aggressive sales growth.

Financial Post – Bloomberg

Infrastructure

Calgary proposes plan for $106-million interchange

A $106-million interchange at Sarcee Trail and Richmond Road is being endorsed by City of Calgary administration as the best possible solution for an already congested corridor expected to grow busier after the opening of the southwest portion of the ring road. The proposal would see Sarcee Trail widened and lowered to allow for the free-flow of traffic, while a bridge would carry Richmond Road over Sarcee Trail.

Calgary Herald

International

Suburban landlords creating new class-A+ offices

Following a trend across the U.S., some suburban landlords are ready to spend considerable amounts redeveloping a select group of class-A properties. GlenStar Properties has helped lead the way in the Chicago metro area, and has just launched the largest redevelopment project ever undertaken in the Northwest suburban office submarket, a $28-million capital campaign at its Schaumburg Corporate Center.

GlobeSt.com

Other

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