CRE sitting on pricey Vancouver land

CRE sitting on pricey Vancouver land

Commercial properties may only take up two per cent of the land lining Metro Vancouver’s oceanfront, but this includes nearly 600 businesses along the shoreline. There are at least 77 office buildings, 73 hotels, 37 stores, 12 restaurants and five theatres directly on the Pacific Ocean between Lions Bay and South Surrey.

Vancouver Sun

Foreign investment in Canadian CRE revs up

The weak loonie continues to drive Asian investors to the Canadian marketplace as the currency likely played some part in the recent purchase of InnVest REIT (INN.UN-T). In February, Beijing-based Anbang Insurance Group Co. Ltd., bought a 66 per cent stake in Vancouver’s Bentall Towers I, II, III and IV.

Financial Post

Tsawwassen Mills on schedule to open in October

Steady progress continues to be made on Ivanhoé Cambridge’s Tsawwassen Mills shopping centre in British Columbia ahead of its projected Oct. 5 opening. “Base-building construction is moving quickly, with the vast majority of exterior improvements complete,” said Ivanhoé Cambridge retail development director Jeff Brown.

Property Biz Canada – BCBusiness

Brookfield builds record war chest for acquisitions

Brookfield Asset Management Inc. (BAM.A-T), Canada’s largest alternative asset manager, said Friday it raised $25 billion for its flagship funds over the past 12 months, giving the company a record level of capital on hand across its platforms to pursue acquisitions. Assets under management rose 16 per cent from a year earlier to $240 billion, the Toronto-based firm said.

Bloomberg

PwC Canada latest Ice District tenant

The massive development taking shape around Rogers Place continues to change the face of Edmonton’s downtown office market, with PricewaterhouseCoopers announcing Thursday a move to the Ice District. PricewaterhouseCoopers (PwC) plans to relocate in December 2018 from the TD Tower to the Stantec Tower, currently under construction southeast of the new arena.

Edmonton Journal – Marketwired

New downtown buildings should help Edmonton attract younger workers

Edmonton’s downtown building boom should make it easier for companies to attract young skilled employees to the city, a real estate investment specialist says. Many millennials want to work in interesting surroundings rather than just going to a job, Chris Nasim, vice-president of asset management for GWL Realty Advisors, said Thursday.

Edmonton Journal

Lanesborough REIT selling oilpatch assets

Winnipeg-based Lanesborough REIT (LRT.UN-T) is selling some of its properties and restructuring its debt in a bid to stay afloat until conditions improve in Alberta’s oilpatch. “Since the price of oil collapsed in November 2014, there has been a steady decline in the rents and in the occupancy of our 1,100 apartment units in Fort McMurray,” CEO Arni Thorsteinson said.

Winnipeg Free Press – Financial Post – Canada Newswire – Property Biz Canada

Crombie REIT makes deal with Empire

Crombie REIT (CRR.UN-T) announced it has entered into an agreement to purchase: 1) a portfolio of 19 retail properties, 2) a 50% interest in three distribution centres and 3) two parcels of development land adjacent to existing REIT properties, and to invest in the renovation and expansion of 10 properties anchored by Sobeys Inc. (EMP.A-T) currently owned by Crombie.

Marketwired – Canada Newswire

Choice Properties completes acquisition of 10 Loblaw properties

Choice Properties REIT (CHP.UN-T) Thursday completed the acquisition of a portfolio of 10 retail properties, including four Shoppers Drug Mart sites, and one warehouse property from certain subsidiaries of Loblaw Companies Limited (L-T) for an aggregate purchase price of approximately $117.3 million, excluding transaction costs. The acquisition was fully funded with cash.

Canada Newswire

Canadian Tire motors through retail storm

Canadian Tire Corporation (CTC-T) share prices are flying high following the release of strong first-quarter earnings on Thursday, as their competitors struggle for footing in a rapidly changing marketplace. “This is a record. I like records,” president and CEO Michael Medline said following the company’s earnings release and annual general meeting.

Toronto Star – Financial Post – Globe and Mail – Waterloo Record‎

Lowe’s receives approval for RONA takeover

The federal government has signed off on a deal that will see U.S. retailer Lowe’s Companies, Inc. (LOW-N) acquire RONA inc. (RON-T) and become owner of Canada’s largest collection of home-improvement stores. Lowe’s says it has received approval under the Investment Canada Act for the acquisition expects the deal to close on May 20.

CTV News – Canada Newswire

Mainstreet Health seeks Canadian share offering

Mainstreet Health Investments Inc., an owner of U.S. seniors facilities, is seeking to raise US$95 million by selling shares in Canada and listing on the TSX. Mainstreet Health aims to sell shares for US$10 to US$11 apiece, and it’s targeting an annual dividend yield of seven per cent to 7.4 per cent, the Toronto-based company said.

Bloomberg – Globe and Mail (Subscription required)

Second phase of infrastructure investment key: Opinion

The Liberal government’s first budget has used much of the available fiscal room to invest in shovel-ready and social infrastructure projects. While this will create some welcome jobs in the short run and help communities in need, it will do little to boost medium-to-long-run economic growth. For this, the budget holds out the promise of a second phase of strategic infrastructure investment.

Globe and Mail

Stagewest Hospitality CEO to open winery

Jason Pechet, whose family has been in the hotel and entertainment industry since 1942, has long wanted to open his own winery. This month, the CEO of the Stagewest Hospitality brand will achieve that goal when he and business partner Mohamed Awad open Play Estate Winery in Penticton, B.C. 

Calgary Herald

Marriott’s Starwood bid challenged by hotel owners

Marriott International Inc.’s (MAR-Q) acquisition of Starwood Hotels & Resorts Inc. (HOT-N) was challenged by the owners of hotels in Chicago and New York who say the merger would violate exclusivity agreements. Cityfront Hotel Associates Limited Partners and Dream Team Hotel Associates LLC sued Marriott and Starwood in New York state court Tuesday.

Bloomberg

Slave Lake wrote the book on coming back from a wildfire

Rebuilding Fort McMurray will take years of effort, billions of dollars, governmental leadership, patience, persistence and help from all over. Sadly — and fortunately — there is a guidebook. Wisdom Gained was written and produced by the Northern Alberta Development Council in co-operation with officials and residents of the Town of Slave Lake.

Edmonton Journal – Calgary Herald

Boardwalk could get bump from Alberta fires

One of Canada’s largest apartment owners, Boardwalk REIT (BEI.UN-T), could see an upsurge in business as a result of fires raging in Alberta, according to a new report. Canadian Imperial Bank of Commerce analyst Alex Avery upgraded his rating on the REIT due to displaced residents moving to Edmonton and other population centres.

Fnancial Post

Residents face job uncertainty amid evacuation

With the town of Fort McMurray in virtual lockdown until wildfires can be extinguished and essential services can be restored, businesses from oil refineries to coffee shops have had to close their doors. Although most companies are unsure of the damage sustained to their operations, at least one employer is still paying workers after the business went up in smoke.

Toronto Star

Firms come to aid of wildfire victims

*  Business Development Bank of Canada, Edmonton Journal

* Circle K, (ATD.A-T), Canada Newswire

Featured Column

Q& A with Brent Sawchyn

Brent Sawchyn is a principal with PC Urban, a leader in Vancouver’s commercial and residential real estate scene. They have a visionary approach to re-imagining old industrial buildings and converting them into new developments that provide higher density and more jobs.

Read more

Market Trends and Research

N.A., U.K. industrial sectors strong; AY

While local, regional and global economic headwinds continue to impact commercial property markets, the industrial sector is operating in a position of relative strength, evolving rapidly as owners and occupiers alike respond to changing demand. These are some of the key trends noted in Avison Young’s Spring 2016 North America and U.K. Industrial Market Report.

Canada Newswire

TO industrial availability rates fall again: NGKF

In its Industrial Real Estate Market Study published Thursday, Newmark Knight Frank Devencore reported availability rates in industrial properties across the Greater Toronto Area (GTA) have dropped to approximately 4.0 per cemt, as low as they have been for the past few years. In part, this tightening of the market reflects the changing face of the GTA’s industrial activity.

Marketwired

London office construction at all-time high

London office construction is at an all-time high, with Deloitte’s latest crane survey recording 51 new construction starts, the highest number in the survey’s 20-year history. Deloitte said 14.2 million square feet of office space was under construction at present. In the short to medium term, it predicted, institutional investors will challenge the dominance of public property companies. 

IPE Real Estate – CoStar Group

Real Estate Companies

U.S. hotel operators take aim at Airbnb

The war of words between traditional hotel operators and the Airbnb site has begun to escalate. Airbnb has become a popular option for travellers seeking short-term rental housing, but the American Hotel & Lodging Association claims the service increasingly provides cover for commercial operators using it to avoid paying taxes and securing the proper licenses.

Globest.com

REOC Financial Reports

Latest first-quarter reports:

* Genesis Land Development Corp., (GDC-T), Canada Newswire  

* Genworth MI Canada Inc., (MIC-T), Canada Newswire   

* Holloway Lodging Corp., (HLC-T), Canada Newswire   

* MCAN Mortgage Corp., (MKP-T), Canada Newswire

* Trez Capital Senior Mortgage Investment Corp., (TZZ-T), Canada Newswire 

* Tricon Capital Group Inc., (TCN-T), Canada Newswire

REIT Financial Reports

Latest first-quarter results:

* American Hotel Income Properties REIT, (HOT.UN-T), Marketwired   

* Automotive Properties REIT, (APR.UN-T), Canada Newswire    

* Boardwalk REIT, (BEI.UN-T), Canada Newswire          

* InnVest REIT, (INN.UN-T), Canada Newswire    

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

* NorthWest Healthcare Properties REIT, (NWH.UN-T), Canada Newswire   

* Plaza Retail REIT, (PLZ.UN-T), Canada Newswire

* Slate Retail REIT, (SRT.U-T), Marketwired 

* Smart REIT, (SRU.UN-T), Marketwired

* WPT Industrial REIT, (WIR.U-T), Canada Newswire    WIR.U

Real Estate Investment Trusts

REIT INDEXPLUS announces normal course issuer bid

REIT INDEXPLUS Income Fund announced it has filed a notice with the Toronto Stock Exchange and received its approval to make a normal course issuer bid for its units through the facilities of the TSX. This NCIB will commence on May 18, 2016 and will terminate on May 17, 2017. The fund had 6,227,124 units issued and outstanding as at May 4, 2016.

Canada Newswire

Hines’ real estate portfolio for sale

An office building leased by Morgan Stanley in London’s Canary Wharf district is being offered for sale by Hines as part of a $5.5 billion property portfolio disposal, according to a source. The Houston-based company, which manages $87 billion of real estate assets, has hired Lazard Ltd. to advise on the sale of the properties in the Hines Global REIT.

Bloomberg

San Diego employees plan exit from REITs

The San Diego City Employees’ Retirement System is planning to exit REITs. The U.S. pension fund,will discuss the plan at an investment committee meeting on 12 May. Brookfield Asset Management (BAM.A-T) manages the portfolio. San Diego City investment consultant Aon Hewett wrote in a board meeting document that real estate securities suffer from higher volatility.

IPE Real Estate

Regulations create another challenge for non-traded REITs

New rules are creating some added headwinds for the non-traded REIT industry. Most experts agree the regulatory changes will be beneficial to the sector in the long run by driving some much-needed structural change, yet it is creating some short-term “pain” by contributing to a big drop in fundraising.

National Real Estate Investor

Retail

Tough week for U.S. retail sector

Investors were surprised this week, unpleasantly so, at the trouble in the U.S. retail sector. Macy’s Inc., Nordstrom Inc., and Kohl’s Corp. reported their worst sales number since the 2009 recession as part of deeply disappointing earnings reports. Macy’s and Nordstrom sharply cut their 2016 outlooks. J.C. Penney today reported first-quarter sales well below analyst expectations.

Globe and Mail (Subscription required) – Reuters – Reuters – Winnipeg Free Press

Aeropostale’s path to drastic store closures

The 1990s and turn of the Millennium were Aéropostale’s heyday. Its casual, logo-covered fashions seemed to be teen must-haves, and it ended 2010 with $2.4 billion in net sales, an 8.0 per cent increase over the previous year. Even after the recession, Aéropostale was still a ubiquitous presence. Now, the former mall A-list tenant has filed for Chapter 11 protection.

National Real Estate Investor – Wall Street Journal

Infrastructure

Firm chosen for Winnipeg transit corridor

A multi-national firm has been chosen to head up a consortium that will design, build and maintain the second stage of the southwest transit corridor. Winnipeg city hall announced this morning the Plenary Roads Winnipeg consortium beat out two other groups to construct the $587-million transit corridor and Pembina Highway Underpass project.

Winnipeg Free Press

Other