Alphabet’s Sidewalk Labs eyes TO for digital city

Alphabet’s Sidewalk Labs eyes TO for digital city

Larry Page’s dream of using technology to fix cities may come to Canada first. Sidewalk Labs LLC, the urban innovation unit of Page’s Alphabet Inc., has applied to develop a 12-acre strip in downtown Toronto, according to two sources, who said the bid fits with the company’s ambition to create a connected, high-tech city or district from scratch.

Bloomberg

Redevelopments rejuvenate Winnipeg’s Pembina Highway

One of Winnipeg’s oldest retail strips — Pembina Highway — is experiencing another mini construction boom, with three new redevelopment projects within a few blocks of one another. The projects include a new flagship Winnipeg store for Long & McQuade, a new microbrewery — Stone Angel Brewery — and a new pharmacy/medical clinic — Leila Pharmacy/Bison Family Medical,

Winnipeg Free Press

CRE Panel: Colliers VP ‘bullish on Montreal’

While it may not garner the headlines reserved for the Toronto and Vancouver real estate markets, Colliers International senior VP Jean-Marc Dubé told attendees at the May 3 Land & Development Conference he’s “bullish on Montreal these days.” (Part II of our feature on recent major land deals, featuring Montreal and Toronto.)

Property Biz Canada

Minto Capital buys Calgary Radisson Place

For the second straight week, Minto Capital Management has made a significant Monday-morning transaction announcement. The company has acquired Radisson Place in Calgary, a 12-storey multi-residential building which includes 11,400 square feet of commercial space. It was purchased by Minto’s Canadian Real Estate Value-Add Fund LP.

Property Biz Canada

Investors show confidence in Edmonton CRE market

Investors continued to demonstrate interest and confidence in the Edmonton market through the first quarter of 2017. CRE investment reached $692 million; a year-over-year increase of $339 million over Q1 2016. Early on, Slate Office REIT (SOT.UN-T) purchased four office towers from Dream Office REIT (D.UN-T). The multi-residential asset class was the top-performer, comprising $290 million or 42 per cent of Q1 investment.  

Barclay Street Real Estate media release

Victoria seeks developer for key downtown lot

The City of Victoria is looking for a developer to buy and transform a high-profile property into an economic engine for the south end of downtown. Private sector watchers have suggested a hotel on the triangle-shaped Apex site, now rented on a month-to-month basis to car rental firms. Mayor Lisa Helps is not ruling out a hotel.

Victoria Times Colonist

Damaged RBC building in TO shuttered for six months

The RBC building evacuated after a hydro vault exploded beneath it earlier this month will remain closed for at least six months. A series of blasts echoed along King Street West around 5:15 p.m. on May 1, at the start of an electrical fire beneath Toronto’s central business district. RBC cited “heavy contamination from soot residue” for the closure.

CBC – Financial Post

New transit line spurs Ottawa development

The skyline reflects Canada’s capital – a clean and balanced combination of modernity and tradition. But with Ottawa expanding its LRT system to include a 13-stop, 12.5-kilometre segment called the Confederation Line, set to open in 2018, developers are looking at other cities such as Toronto for inspiration for downtown development with access to transit in mind.

Globe and Mail

New Ontario alliance to link 11 regional airports

With passenger numbers expected to take off in the coming years, a new network of southern Ontario airports has a plan to share the wealth and help attract more air traffic throughout the region. Toronto Pearson International Airport is joining with other airports in the province to form the Southern Ontario Airport Network. 

CBC – Globe and Mail – Windsor Star

Second Cup CEO steps down

The Second Cup Ltd. (SCU-T) announced CEO Alix Box is leaving the company and stepping down as a director. Garry MacDonald has been appointed interim CEO. Box had been appointed CEO of Second Cup in 2014. MacDonald joined the Second Cup Board of Directors earlier this year and has extensive experience in the franchised specialty food sector. 

Canada Newswire

How to navigate retail closures: The Source president

Charles Brown, president of The Source, Canada’s largest consumer electronics and mobile retailer, says “In order to stay relevant with today’s shopper, we have had to reinvent The Source on all fronts. We are currently engaged in executing an extensive business transformation strategy.”

Financial Post – Financial Post: Part I

Mortgage, housing opinions ‘grossly misinformed’: Scotiabank

Scotiabank’s (BNS-T) head of capital market economics Derek Holt is attempting to counter what he believes is bad information about mortgage financing and housing markets. This comes amid the turmoil at Home Capital Group Inc. (HCG-T) and widespread concerns over inflated housing markets in and around Toronto, with the latter sparking sweeping new Ontario measures. 

Globe and Mail (Subscription required) – Globe and Mail – Financial Post – CBC

Why we get flood planning wrong

What do we do wrong about floods? Slobodan Simonovic, director of engineering studies with Western University ’s Institute for Catastrophic Loss Reduction, says we fail to learn from our mistakes, and from the devastating power of nature. There’s inadequate flood plain mapping and choosing to rebuild destroyed homes, daring the water to rise again. 

Calgary Herald – CBC – CBC – Ottawa Citizen

CCP, Sabra to create healthcare mega-REIT

Sabra Health Care REIT Inc. (SBRA-Q), of Irvine, Calif., and Care Capital Properties Inc., (CCP-N) of Chicago, have agreed to combine in an all-stock merger. The combined company is expected to have an equity market capitalization of about $4.3 billion, a pro forma total market cap of about $7.4 billion and a diversified portfolio of 564 investments across 43 states and Canada. 

CP Executive – CoStar Group – Senior Housing News

Sale of Trump Caribbean property revives ethics concerns

For sale: Luxury waterfront escape. Comes with two villas and five acres of paradise. And perhaps a bit of goodwill from the president of the United States. President Donald Trump’s corporate trust is selling a multimillion-dollar Caribbean resort, presenting an enticing new way for a wealthy interest to get the president’s attention and creating a fresh ethical dilemma.

Halifax ChronicleHerald

Featured Column

Sears Canada quietly drops spring/summer catalogue

My grandmother and I recently discussed the future of Sears Canada (SCC-T). Outside of heavy news coverage of the Sears Holdings (SHLD-Q) hardships sourth of the border, she identified something that dropped from all our radars: the absence of a Spring/Summer 2017 catalogue. 

The Saskatchewan Edge

Market Trends and Research

U.S. banks tightening CRE loan standards

Loan officers at U.S. banks reported tightening their lending standards for commercial real estate loans over the last year, the Federal Reserve said on Monday in a report that could heighten concerns about the outlook for commercial real estate. Officials at the U.S. central bank have warned a run-up in CRE prices could amplify any future economic downturn.

Reuters – MarketWatch

Asia-Pacific funds outperform Europe and U.S.

Non-listed real estate funds in Asia-Pacific returned an average of 10.6% in 2016, according to the latest annual ANREV index. Amélie Delaunay, director of research and professional standards at the Association of Non-listed Real Estate Vehicles (ANREV), said the region outperformed both the U.S. and Europe

IPE Real Estate

Real Estate Companies

Tricon completes acquisition of Silver Bay

Tricon Capital Group Inc. (TCN-T), a principal investor and asset manager in residential real estate, announced it has completed its previously announced acquisition of Silver Bay Realty Trust Corp. The transaction values Silver Bay at an enterprise value of approximately $1.4 billion (before transaction costs), consisting of an equity purchase price of approximately $820 million and approximately $600 million of existing debt.

Canada Newswire – Canada Newswire

Marijuana companies setting up shop in Saskatchewan

With the upcoming legalization of recreational marijuana next year, companies are looking to expand into Saskatchewan. Tuesday, Canopy Growth Corp. announced it had acquired rTrees Producers Limited Inc. in Yorkton and was looking to hire 40 to 50 employees. The next day Harvest One Cannabis Inc., announced plans for a marijuana production facility in Lucky Lake.

Regina Leader-Post

REOC Financial Reports

Latest financial results:

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

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

* Mainstreet Equity Corp., (MEQ-T), Canada Newswire 

* Melcor Developments Ltd., (MRD-T), Marketwired   

* Morguard Corporation, (MRC-T), Canada Newswire  

REIT Financial Reports

Latest financial reports:

* Artis REIT, (AX.UN-T), Canada Newswire 

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

* CAPREIT, (CAR.UN-T), Marketwired 

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

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

* Inovalis REIT, (INO.UN-T), Canada Newswire   

* Lanesborough REIT, (LRT.UN-T), Canada Newswire  

* Northview Apartment REIT, (NVU.UN-T), Marketwired 

* Pure Industrial Real Estate Trust, (AAR.UN-T), Marketwired    

* Slate Office REIT, (SOT.UN-T), Marketwired 

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

Real Estate Investment Trusts

FrontFour Capital seeks board representation at Granite REIT

FrontFour Capital Group is seeking board representation at Toronto-based Granite REIT (GRT.UN-T) arguing the company is underperforming peers after failing to use its balance sheet efficiently to make acquisitions, a document obtained by Bloomberg shows. The Connecticut-based activist investor said Granite has the capacity to spend as much as $1 billion on new purchases, according to the document, 

Bloomberg – Canada Newswire – Globe and Mail (Subscription required) – Reuters

True North announces early lease renewal in Ottawa

True North Commercial REIT (TNT.UN-T) announced it has executed an early lease renewal with EMS Technologies Canada, Ltd., a subsidiary of Honeywell International Inc., at 400 Maple Grove Road, Ottawa. The renewal, totalling 107,243 square feet, extends the 10-year EMS occupancy at Maple Grove for a further seven years. 

Canada Newswire

Legal Corner

Wal-Mart close to resolving bribery probe

Wal-Mart Stores Inc. (WMT-N) is preparing to pay roughly $300 million to resolve a long-running U.S. investigation into allegations of bribery by its employees, according to sources. The Justice Department and Securities and Exchange Commission had sought at least twice that amount last year as they investigated bribery allegations linked to Wal-Mart’s business in countries including Mexico, China and India. 

Bloomberg

Retail

Office Depot profit beats estimates

Office supply chain Office Depot Inc (ODP-Q) reported a larger-than-expected quarterly profit as expenses fell, in part due to a lower store count, sending the retailer’s shares up as much as seven per cent on Tuesday. Following its failed merger with Staples Inc in May last year, Office Depot has been streamlining its business.

Reuters

Loblaw improvements boost George Weston profit

George Weston Ltd. (WN-T) is reporting a 189 per cent increase to its first-quarter profit, mostly because of improved results from its stake in Loblaw. The Toronto-based company, which also owns the Weston Foods bakery business, had $107 million or 83 cents per share of net income for common shareholders in the quarter ended March 25. 

Globe and Mail

Sleep Country goes after mattress-in-a-box market

Sleep Country Canada Holdings Inc. (ZZZ-T) is looking to cash in on the small but fast-growing market made popular by high-profile online startups that sell memory-foam mattresses and deliver them to customers in a box the size of a bar fridge. Companies such as Casper, Leesa and Endy began disrupting the often-opaque mattress business in 2013. 

Financial Post – Canada Newswire – Canada Newswire – Canada Newswire

New Development

Long-awaited Edmonton condo project half sold

Half the units in the first phase of a Glenora condo project have sold at an average of more than $1 million. The initial $85-million West Block tower, whose official groundbreaking ceremony is set for today, will have 60 units on 13 storeys over a three-floor retail and office podium, said Salima Kheraj, a principal with InHouse by developer and builder Beaverbrook.

Edmonton Journal

Infrastructure

Infrastructure bank to get short review

Legislation to create a $35-billion Canada Infrastructure Bank is scheduled to receive just one day of dedicated committee scrutiny as the federal government rushes to complete all hearings on the budget bill before the end of next week. The Liberal majority is planning to divide the study of Ottawa’s more than 300-page budget bill among several committees.

Globe and Mail – Global News

Tory threatens to halt Yonge subway extension

Mayor John Tory says the TTC may stop planning work on extending the Yonge subway north if the province doesn’t commit to helping fund the future downtown relief line. Tory said he’s puzzled by hesitation at Queen’s Park to commit funding for the project, especially as Ontario has provided $150 million to help study it.

CBC – Toronto Star

Ontario about to sell more Hydro One shares

The Ontario government is selling what it expects to be its final offering of shares in Hydro One Ltd. (H-T), a move it says could raise more than $3 billion for the province.  The government and Hydro One say they have entered into an agreement with a syndicate of underwriters for the offering on a bought-deal basis of some 120 million common shares.

CBC – Globe and Mail (Subscription required) – CBC

Technology

OMERS closes third technology-oriented venture fund

Pension giant OMERS has closed its third technology-oriented venture fund, a $300-million capital pool that includes backing from five other Bay Street giants – and no government money. OMERS Ventures Fund III is also backed by Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Toronto-Dominion Bank, Sun Life Financial and U.S. fund-of-funds investment firm Wafra Group.

Globe and Mail (Subscription required)

Other