Ivanhoé eyes deals for TO, Vancouver mall investments

Ivanhoé eyes deals for TO, Vancouver mall investments

Ivanhoé Cambridge is in talks to sell two of its mall investments in Toronto and the Vancouver area but is yanking its Calgary stake off the market as the shopping centre is being redeveloped, according to sources. Ivanhoé, the real estate investment arm of the Caisse de dépôt et placement du Québec, put its 50 per cent non-managing interest in three malls on the auction block late last year.

Globe and Mail (Subscription required) – Property Biz Canada – Property Biz Canada – Property Biz Canada

Toronto in stiff battle for Amazon’s HQ2

Toronto was the only Canadian market among 20 cities in North America to make the next cut for Amazon‘s HQ2, but the Seattle-based company (AMZN-Q) would face a tight market if it ultimately chooses Toronto, say industry watchers. “There is no space, so somebody will be building them a building,” said Paul Finkbeiner, chief executive of GWL Realty Advisors, one of the country’s major landlords. 

CoStar Group – Globe and Mail (Subscription required) – Winnipeg Free Press – Globe and Mail (Subscription required)

Broccolini buys $100M downtown Montreal development site

Montreal-based Broccolini says it has purchased the largest site still available for development in the city’s downtown, and plans to develop up to 1.5 million square feet of mixed-use space on it. Broccolini announced the $100-million purchase of the site, which includes about 135,000 square feet of property, on Friday morning.

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

Granite REIT sells 10 Canadian, U.S. properties for $400M

Granite REIT (GRT-UN-T) has taken a major step toward reducing its exposure to Magna International, its primary tenant, with the sale of 10 properties in Canada and the U.S. for approximately $400 million. “The sale of these properties is another major value-creation milestone for Granite,” Granite CEO Michael Forsayeth said in a news release.

Property Biz Canada

Plaza Retail REIT busy buying, selling, building

Business is brisk these days at Plaza Retail REIT (PLZ-UN-T), which has 23 projects under development or redevelopment and has been active selling and acquiring properties in the past couple of months. Current development projects will add about 1.82 million square feet to Plaza’s portfolio. And there will be more to come, as Plaza’s purchase of the 1000 Islands Mall property in Brockville, Ont., last week indicates.

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

Calgary’s East Village to see flurry of development in 2018

As a decade of revitalization efforts begin to take hold in the East Village, the next few months will see the pace of development ratcheted up even further. Tuesday’s news conference revealed two condo towers and a boutique hotel will be included. And, Lukes, a 2,000-square-foot cafe will open when the New Central Library is unveiled in early November. There will also be a second restaurant space.

Calgary Herald – CBC – Property Biz Canada

Sugar Wharf breaks ground on Toronto waterfront

Ground has broken on an office tower that will be the first building constructed for one of downtown Toronto’s most eagerly anticipated mixed-use developments, Sugar Wharf. When you have a site of this size, you’re able to do a lot more than just a one-off building,” said Peter Menkes, the commercial/industrial division president of Menkes Developments Ltd.

Property Biz Canada

Rental costs to skyrocket for Vancouver industrial

Metro Vancouver is expected to experience North America’s second-highest increase to industrial property rental rates through 2019, while vacancy rates are expected to drop to 2.1 per cent in that same period, according to Cushman and Wakefield’s North American Industrial Forecast Report. C&W predicts Vancouver will experience an average annual rent rate increase of 8.5 per cent.

Vancouver Sun – Property Biz Canada – Property Biz Canada – Property Biz Canada

Industry experts question Edmonton’s focus on LRT-related infill

Edmonton’s best opportunity to create new walkable, mixed-use districts isn’t around LRT stations, but around malls, according to an industry report. Intelligence House and Colliers International identified six malls that have spent the most money upgrading since 2009: Londonderry, Kingsway, Southgate, Northgate/North Town, Capilano and Westmount. The report was commissioned by the City of Edmonton and released in December.

Edmonton Journal – Property Biz Canada – Property Biz Canada – Property Biz Canada

LRT deal leaves Ottawa ‘jewel’ open to development

An Ottawa city councillor is calling for a halt to a deal with the National Capital Commission that would leave what he calls “the best part” of Rochester Field in Westboro open to development. Under the proposal, which is tied to an agreement with the city to extend light rail farther west, 80 per cent of the NCC-owned property would be retained as open space for public use.

CBC

UPPlift: Toronto Canada’s first urban pilot program

This week, Toronto took  another step in cementing its position as a global tech leader with the launch of UPPlift: Toronto, an urban pilot program (UPP) seeking technological innovations aimed at resolving challenges in urban areas and their existing infrastructure. With support from corporations including QuadReal Property Group, Toronto will operate as a virtual technology accelerator with a goal to help resolve city challenges.

Canada Newswire

U.S. online-shopping pitch would cut 300,000 Canadian jobs: study

The U.S. push for a major increase in duty-free limits for online shoppers would eliminate hundreds of thousands of Canadian jobs and shave more than $10-billion from Canadian government revenues, according to new research from Canadian retailers. In negotiations on NAFTA, U.S. Trade Representative Robert Lighthizer is urging Canada to raise its tax and duty-free limit for cross-border shipments to $800, on par with the U.S. level, from the current $20.

Globe and Mail (Subscription required)

Wal-Mart names Judith McKenna international chief

Wal-Mart Stores Inc. (WMT-N) will tap Judith McKenna to run its international unit, elevating one of its highest-ranking female executives to a critical role, according to sources. McKenna, currently chief operating officer of the retailer’s domestic operations, will succeed David Cheesewright on Feb. 1. Cheesewright, 55, has held the job for the past four years. 

Bloomberg – Canadian Grocer

Europe next frontier for crossover hotels: CBRE

Some well-known retailers, restaurants and even health clubs are extending their brands into the lodging industry, opening boutique hotels that showcase the lifestyle they sell. These crossover hotels are growing in number in the United States, and the trend is expected to expand into Europe in the coming years as the industry looks for ways to differentiate new properties from existing ones, a study by CBRE Group Inc. says.

Globe and Mail

Apple to build second campus in $350B pledge

Apple (AAPL-Q) is planning to build another corporate campus and hire 20,000 workers during the next five years as part of a $350-billion commitment to the U.S. that will be partially financed by an upcoming windfall from the country’s new tax law. About $75 billion of the $350 billion in U.S. investments will be paid from money that had been overseas, Apple estimated. 

Daily Commercial News – CoStar Group

Market Trends and Research

Calgary’s Beltline adds 72,000 square feet of vacant office space

Calgary’s Beltline office market witnessed a net negative absorption totalling 72,000 square feet during 2017’s fourth quarter. Mount Royal Village West has been added to the Beltline inventory, the new development contributing 30,000 square feet of new, unleased office space. Driving negative absorption during Q4 was a large amount of new class-A space coming to market, much of it full-floor options.

Barclay Street Real Estate media release – Barclay Street Real Estate media release

Montreal’s industrial market stable: NKFD

Newmark Knight Frank Devencore Thursday announced the overall availability rate for industrial space in the Greater Montreal Area (GMA) was at 6.1% at the end of 2017. Estimated net asking rents have remained unchanged over the past 12 months, and currently average $5.91/SF. Rents have remained stable largely because of the quality of the available inventory, which generally falls into the class-B and class-C categories.

Marketwired – Property Biz Canada

Real Estate Companies

Real Property Management opens new Toronto location

Real Property Management (RPM) announced Nish Fernando and Kapila Edirisinghe are the new owners of Real Property Management Gateway in Toronto. The partners plan to service clients in the GTA, specifically Toronto and Mississauga, as well as Hamilton. Edirisinghe has years of experience in the real estate industry and is currently a real estate agent in Brampton. Fernando has extensive experience in building and facilities management.

Globe Newswire

Home Capital bond investors poised for Buffett-powered windfall

Home Capital Group Inc. (HCG-T) debt investors who took a bet on the Canadian mortgage lender when its survival was in doubt are poised to reap the rewards. Bonds of the beleaguered lender fell below 90 Canadian cents on the dollar last year and some yields hovered near 16 per cent as the Toronto-based company was engulfed by accusations that its portfolio was tainted by falsified home-loan applications.

Globe and Mail

La Quinta selling operating business to Wyndham Worldwide

After announcing plans a year ago to split its hotel business into separate firms, Blackstone-controlled La Quinta Holdings Inc. (LQ-N) reached a deal this week to sell its hotel franchise and management businesses to Wyndham Worldwide Corp. (WYN-N) for $1.95 billion. As part of the agreement, La Quinta will spin off its owned real estate assets into a publicly traded REIT to be called CorePoint Lodging. 

CoStar Group

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Real Estate Investment Trusts

Slate Office acquires Cominar office portfolio from Slate Acquisitions

Slate Office REIT (SOT-UN-T)  has agreed to acquire seven office properties in the Greater Toronto Area and Atlantic Canada for an aggregate purchase price of $191.4 million representing $192 per square foot. The acquisitions are part of a portfolio of real estate assets to be sold by Cominar REIT (CUF-UN-T) and which are the subject of a sale contract among Slate Acquisitions Inc. 

Globe Newswire

Retail

Circle K announces first full-service franchise opportunities in Canada

Alimentation Couche-Tard Inc. (ATD-A-T), one of the world’s largest convenience store retailers with over 15,000 stores globally, announced new full-service franchise opportunities with its Circle K brand in Canada. The expansion marks the first time the Circle K brand will be franchised in Canada with the offer initially targeting Ontario. Interested parties will be able to join a world-wide network of company-owned and licensed stores. 

Canada Newswire

Lowe’s names two directors after talks with activist investor

Home improvement chain Lowe’s Cos Inc (LOW-N) appointed two independent board members and plans to add a third following talks with activist hedge fund D.E. Shaw & Co, sending its shares up two per cent pre-market. The appointments follow a report last week that D.E. Shaw had built an active stake in the $84-billion company and was concerned about its performance in comparison with peers. 

Reuters

The evolution of omnichannel retail

When it comes to modern-day shopping, consumers have naturally assumed a hybrid approach: They might start their research on a retailer’s website or read online product reviews, but then visit a store to get a better sense of a product’s look, feel and fit. Or they might start at the store and then later buy a product online. This means retailers have to be smart about giving consumers the experience they want as well as where and when they want it.

Wall Street Journal

New Development

EY establishing ‘centre of excellence’ in Halifax

The Nova Scotia government has awarded payroll rebates to Ernst and Young as the professional services firm establishes its first Canadian-based Global Centre of Excellence for Robotic Process Automation Service in Halifax. The rebate, valued at more than $2.4 million over five years, is contingent on the firm creating 150 jobs in the city. Ernst and Young Canada said Tuesday it will not be formally launching the project until February.

CBC

Minhas Brewery to build new distillery in Calgary

Minhas Brewery announced Thursday plans to build a distillery in its northeast Calgary microbrewery. Minhas is already in the hard liquor business but its lines of vodka, gin and Irish cream are currently produced in Wisconsin. Co-founder/CEO Ravinder Minhas said much of the production will be moved to the new distillery in Calgary, which is expected to be up and running by May 1.

Calgary Herald

Human Resources

Avison Young appoints Christine Battist CFO

Mark E. Rose, chair and CEO of Avison Young, the world’s fastest-growing commercial real estate services firm, announced Christine Battist has joined the firm as a principal and chief financial officer. Effective immediately, Battist will lead the company’s finance and accounting organization. Based in the firm’s Chicago office, she will also serve on Avison Young’s corporate leadership team.

Canada Newswire

Technology

Drones deliver fresh view on commercial real estate

As building owners and operators try to find distinctive marketing options and inexpensive alternatives for building surveillance, commercial drones are answering the call. Chris Anderson of UAV North in Edmonton turned video-gaming into a drone-operator career focusing on golf courses, residential buildings and now commercial facilities. One client, a warehouse owner, wanted to ensure his tenant wasn’t changing anything on the building.

Western Investor

Blockchain technology threatens middleman in CRE transactions

In Canada’s CRE market, there are countless extra fees and processes involved in purchases that go beyond the price of the property. But blockchain technology could hold the key to cutting down some of those costs by reducing the intermediaries. Blockchain, essentially an online ledger, is innovative in the ledger is distributed, meaning anyone connected to the network has a copy of it.

Globe and Mail

Other

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