Oxford Properties, British Land sell ‘Cheesegrater’

Oxford Properties, British Land sell ‘Cheesegrater’

The “Cheesegrater”, the tallest building in the City of London, has been sold to a Chinese property tycoon for $1.88 billion Cdn, the second-largest ever sale of a U.K. building. British Land, and its joint venture partner Oxford Properties Group, the global property arm of  OMERS, have sold the landmark building to CCC Land Holdings Ltd,

The Guardian – BBC – Reuters – Wall Street Journal

AIMCo acquires HSBC Bank Place, Enbridge Place

Alberta Investment Management Corporation, on behalf of certain of its clients, announced the successful acquisition of HSBC Bank Place and Enbridge Place, located in Edmonton. By investing in these two downtown office locations, AIMCo’s clients gain more than 550,000 square feet of class-A office space within their respective real estate portfolios.

Canada Newswire – Calgary Herald

Empty office tower ‘skews’ New West vacancy rate

The Metro Vancouver city of New Westminster is centrally located, with relatively affordable home prices, a compact downtown core, and well-connected to the region by two SkyTrain stations. It all adds up, presumably, to a strong office climate. But instead, the city of about 66,000 lags behind its municipal neighbours when it comes to the demand for office space.

Property Biz Canada – CBC

Tricon Capital buying Silver Bay Realty

Tricon Capital Group Inc. (TCN-T), a Toronto-based investor and asset manager focused on residential real estate, agreed to acquire single-family rental (SFR) firm Silver Bay Realty Trust Corp. (SBY-N) in a deal valued at $1.4 billion. The transaction will be structured with an equity purchase price of $820 million and the assumption of $600 million of Silver Bay debt.

CoStar Group – Marketwired

JLR’s Bee Commercial caters to CRE stakeholders

Bee Commercial is hoping to create a buzz among commercial brokers with the launch of its new Canadian online commercial listing service. The listing service was launched in late January at the Banff Western Connection, a conference organized by the Canadian Real Estate Association (CREA) and the provincial real estate associations of B.C., Alberta, Saskatchewan and Manitoba.

Property Biz Canada

China crackdown threatens to cut foreign investment

Stiffer currency regulations in China could dampen Vancouver real estate sales, but some say they might also provide an excuse for China-based investors to bail out of Metro Vancouver’s slowing housing market. According to global property service firm Jones Lang LaSalle (JLL), China’s outbound commercial real estate investment increased 53 per cent to $44 billion Cdn in 2016 from a year earlier.

Business In Vancouver – Pensions & Investments

Trump, Brexit could impact Vancouver CRE

The managing director of Ottawa-based Macdonald-Laurier Institute has a sobering message for the commercial real estate sector in Vancouver: the factors that led to an American populist uprising and the Donald Trump presidency are alive and kicking north of the border, and will be ignored at our peril.

Vancouver Sun

Praise and scorn greet Vancouver’s Trump tower debut

Vancouver’s Trump condo-hotel tower has opened to praise from Donald Trump’s family and scorn from protesters opposed to the U.S. President, while the Malaysian developers look to capitalize on a tourism boom. Joo Kim Tiah, CEO of Malaysia-based TA Global Berhad, said he is proud of the tower TA Global jointly developed with Vancouver-based Holborn Group.

Globe and Mail – Globe and Mail – Business In Vancouver – Vancouver Sun

Downtown Vancouver office market tightening

In its Real Estate Market Research study, Newmark Knight Frank Devencore reported that, as downtown Vancouver’s current cycle of new development winds down, the office market is gradually becoming more challenging for tenants. Buildings delivered during this cycle of development are approximately 94 per cent leased.

Marketwired

White Rock retail, homeowners move uptown

As the residential condo sector in South Surrey and White Rock continues strong, the commercial and industrial side is struggling to keep up with increased rent, lack of options and a shortage of available land. One of the flashpoints has been Marine Drive in White Rock, a commercial street known for locally run restaurants and shops.

Western Investor – CBC

At CBRE, desks are not for eating lunch

Mackenzie Sharpe was often so busy his desk became his cafeteria at lunch time. So he had nagging doubts when his employer, commercial real-estate service company CBRE Ltd., declared a new policy: Food could no longer be eaten in work areas in its offices.

Globe and Mail

New CEO determined to fix YYC troubles

New Calgary Airport Authority CEO Bob Sartor, whose career has been concentrated in the world of retail and customer service, has heard the complaints. “I have had several conversations with Gregg (Saretsky) at WestJet. They are our No. 1 customer and guess what? When your No.1 customer talks, you have to listen,” said Sartor.

Calgary Herald

SoftBank set to invest in WeWork

SoftBank is close to finalizing an investment in WeWork, a source close to the transaction told CNBC. The deal is expected to be worth more than $3 billion US. The investment being discussed is a $2 billion primary tranche of funding, followed by a secondary round worth more than $1 billion in the shared space real estate startup.

CNBC – CNBC

RioCan REIT announces resignation of CFO

RioCan REIT, (REI.UN-T) today announced the resignation of Cynthia Devine, chief financial officer, to pursue other career opportunities. Ms. Devine has informed the trust she has accepted the position of CFO at Maple Leafs Sports & Entertainment. Devine will continue in her position at RioCan until the end of this month.

Marketwired – Motley Fool – Property Biz Canada – Property Biz Canada

Target on track for worst day in 18 years

Target Corp (TGT-N) became a retail phenomenon — and a stock market darling — with a rare mix of hip products and bargain prices. However, Target stunned investors Tuesday by abruptly announcing it would move prices further down market, into the realm of its No. 1 rival, Wal-Mart Stores Inc., and accept lower profit margins as a result.

Bloomberg – Bloomberg – Reuters – The Street

Featured Column

Homeownership a wise goal for all Canadians

Over the past few years, demographics regarding homeownership in Canada have changed, especially for those entering the marketplace – largely because of rising home prices. The great news is that first-time buyers are still finding ways to become owners, just a little later in life.

Read more

Market Trends and Research

Airlines profiting from tax to upgrade airports

A passenger rights advocate wants Canadian airlines to stop benefiting from fees intended for airport upgrades. Airport improvement fees are charged at every major airport, in the range of $23 to $30. The fee is included in the taxes on each departing ticket. CBC News has learned airports give four to seven per cent to the airline carrying the passenger.

CBC

Opinion: Getting downtown Windsor right

Adventure Bay, Riverfront Festival Plaza and Ouellette Avenue — they’re three key components of Windsor’s struggling downtown, projects worth 10s of millions of dollars. We need to get them right. There were long lines at Adventure Bay before it even opened on Family Day. More than 500 people streamed in during the first hour.

Windsor Star

Real Estate Companies

Mission commercial land sells above assessed value

Three parcels of Mission, B.C., land featuring several acres of redevelopment potential have sold for $6.1 million, Randy Heed and Sheldon Scott of Colliers International report. The nine-acre property includes a warehouse building and storage shed. Rona previously tenanted the building. The warehouse measures 13,701 square feet of gross leasable area.

Western Investor

REOC Financial Reports

Latest reports:

* Dream Hard Asset Alternatives Trust, (DRA.UN-T), Marketwired   

* Dream Unlimited Corp., (DRM-T), Marketwired 

* Extendicare Inc., (EXE-T), Marketwired   

* Sleep Country Canada Holdings Inc., (ZZZ-T), Canada Newswire  

REIT Financial Reports

Latest reports:

* CAPREIT, (CAR.UN-T), Marketwired 

Real Estate Investment Trusts

Maplewood International announces internalization

Maplewood International REIT (MWI.UN-X) announced the internalization of the REIT’s external asset management and sub-asset management functions. The asset management agreement between the REIT and HREB Asset Management Inc. and the sub-asset management agreement between HREB and Stadium Asset Management B.V., have been terminated by mutual agreement and at no cost to the REIT. 

Marketwired

Slate Office announces long-term lease for St. John’s office building

Slate Office REIT (SOT.UN-T), a leading owner of office properties in Canada, announced the completion of a long-term 154,018-square-foot lease with Johnson Insurance at the newly renamed Johnson Building (formerly, Fort William Building), located at 10 Factory Lane in St. John’s, N.L. The new Johnson Insurance lease has an initial term of 10 years.

Marketwired – Globe and Mail (Subscription required) – Marketwired – Canada Newswire

H&R has a 5.9 per cent yield

H&R REIT (HR.UN-T), which offers investors a 5.9 per cent yield, has a diversified portfolio of North American real estate assets containing office properties, retail properties, industrial properties, and residential properties. In addition to asset class diversification, H&R has geographic diversification with its 33.6 per cent interest in ECHO Realty LP.

Globe and Mail (Subscription required)

The perfect REIT for the risk-averse

Back in June 2015, I wrote a favourable column about Canadian Real Estate Investment Trust (REF.UN-T). Canada’s oldest – and, some would say, best-managed – REIT had tumbled in price because of weakness in Calgary’s office market, and I suggested it was a good time to buy. In the 20 months since, CREIT’s units have rebounded by about 16 per cent. 

Globe and Mail (Subscription required)

Legal Corner

Ex-major received cheque from HQ contractor

Former Winnipeg mayor Sam Katz, who initially denied having any business association with contractor Armik Babakhanians, received a cheque directly from the businessman in 2012 as part of an Arizona land deal, CBC News has learned. Babakhanians was hired to build Winnipeg’s new police headquarters.

CBC

Retail

BCBG Max Azria closing freestanding Canadian stores

Fashion house BCBG Max Azria Group LLC filed for bankruptcy protection on Wednesday, the latest casualty in the struggling U.S. retail sector, as shoppers abandon malls in favour of internet shopping. BCBG Max Group’s Canadian affiliate also separately filed for voluntary reorganization proceedings under Canada’s Bankruptcy and Insolvency Act.

Reuters

Best Buy posts unexpected drop in same-store sales

Best Buy Co Inc (BBY-N) Wednesday reported an unexpected drop in same-store sales for the holiday quarter, the latest example of an electronics retailer struggling with waning demand and fierce competition from online stores. The retailer said sales at stores open for more than a year fell 0.7 per cent in the fourth quarter.  

Reuters

Lowe’s forecasts strong sales growth this year

Lowe’s Cos Inc (LOW-N) forecast 2017 sales ahead of analysts’ estimates and reported better-than-expected quarterly comparable-store sales as trends in the housing market encouraged Americans to spruce up their homes or buy new ones. Shares of the No. 2 U.S. home improvement retailer rose 9.1 per cent to $81.15 in premarket trading on Wednesday. 

Reuters

Canada Goose has big hopes for IPO

Canada Goose Holdings Inc., known for its trademark $900 parkas with coyote fur-lined hoods, is seeking to raise as much as $320 million in its initial public offering. The Toronto-based retailer and its backers, which plan to list shares both in Toronto and in New York, are offering 20 million shares for $14 to $16 each, according to a filing Wednesday.

Bloomberg

Restaurants and Eateries

Starbucks ready to enter Italy after 35 years: CEO

Starbucks (SBUX-Q) CEO Howard Schultz’s vision for the chain was largely inspired by the coffee bars he saw on his first trip to Milan more than three decades ago. But it took the company growing to about 26,000 stores in 75 countries to win the credibility he felt necessary to make the leap into the land of espresso.

Globe and Mail – Bloomberg

Ottawa’s Gabriel Pizza marks anniversary with expansion plans

Forty stores in 40 years is the plan for Ottawa-based restaurant chain Gabriel Pizza. On Feb. 28, 1977, Michael Hanna opened his first pizza restaurant. Exactly 40 years later, the company kicked off a year of celebrations and store openings that will bring its store count to 40. Hanna is still involved in the business, as are his five brothers. 

Ottawa Business Journal

Jollibee serves up nostalgia at first Canadian outpost

For years, Jollibee was rumoured to be bringing its Filipino-American fast-food restaurants to Canada. The day finally arrived in December, when the global giant opened its first store in Winnipeg, home to the country’s largest per-capita population of Filipino-Canadians. Hundreds lined up in -27 C weather for Jollibee’s Filipino and American dishes.

Globe and Mail

Sports Venues

MTS Centre to get aviation-themed upgrade

Renovations at the MTS Centre are about to take flight using the Winnipeg Jets’ colours and an aviation theme of glass, steel and rivets. Work will soon begin on building upgrades such as new lighting, flooring, ceiling and signage, as well as the future addition of new food and beverage options. The renovation carries a fully ownership-funded price tag estimated at $12 million.

Winnipeg Free Press

Infrastructure

Port Mann Bridge won’t break even until 2025

The money-losing Port Mann Bridge won’t start turning a profit until 2025 — eight years behind its original schedule, according to newly released government figures. Financial forecasts show it is projected to continue suffering tens of millions in annual losses until 2025-26, when it hits a break-even point. 

Vancouver Province

Calgary LRT planning going ‘pretty smoothly’

Though construction isn’t slated to start for at least another two years and provincial funding is still uncertain, the City of Calgary has already spent $101 million on the 46-kilometre Green Line LRT. The mega light rail transit project that would stretch from North Pointe to Seton has cost the city $101 million up to the end of December.

Calgary Herald

Cost of Scarborough subway extension rises

The cost to build a one-stop subway extension in Scarborough is now estimated at $3.35 billion, according to a new city staff report released Tuesday after months of delay. The updated cost is a $150-million increase over the earlier $3.2 billion estimate. Staff continue to recommend the subway be aligned with McCowan Ave. with changes to improve a connected bus terminal.

Toronto Star – Toronto Star

Human Resources

Technology replaces jobs as oilpatch emerges from downturn

Tens of thousands of oil and gas workers laid off during the downturn have been waiting for the patch to get back on its feet, but many of the jobs could be history. A rapid change in technology is playing out across the industry, after plummeting crude prices that began in 2015 forced companies to cut jobs and other costs.

Calgary Herald

Frank Gehry to teach online architecture course

Class will soon be in session for Frank Gehry, and the celebrated Canadian-born architect will be leading the lessons. The California-based Gehry will be teaching what is being billed as his first-ever online class this spring. The Gehry-led course on design and architecture will be hosted by online education service Masterclass.

Globe and Mail

Other