Sobeys owner announces sweeping overhaul

Sobeys owner announces sweeping overhaul

The owner of Sobeys and Safeway has unveiled a three-year transformation plan aimed at saving the struggling grocery retailer $500 million a year by the end of fiscal 2020. The restructuring will see Empire Co. (EMP.A-T) take “significant” one-time costs and make an unspecified number of layoffs and comes after two years of trying to fix its Western Canadian operation.

Financial Post – Globe and Mail – CBC – CTV

Gordon Hicks appointed CEO of BGIS

Brookfield Global Integrated Solutions (BGIS), a leading global real estate management services company, announced he appointment of Gordon Hicks as chief executive officer. The global leadership role is newly-created to address the business’ significant global growth and future opportunity. Hicks currently serves as CEO, Americas, for BGIS.

Marketwired – Property Biz Canada

New Molson Coors brewery on tap for Chilliwack

Molson Coors Canada  (TPX.B-T) has started work in Chilliwack on a new $200-million brewery that is expected to pull workers from Vancouver and become one of the largest industrial users in the Fraser Valley city. In early 2016, Molson Coors closed a deal to sell its existing three-hectare brewery site near Burrard Bridge in Vancouver to mega developer Concord Pacific. 

Property Biz Canada

CaGBC set to unveil Zero Carbon Buildings Standard

The Canada Green Building Council will unveil its Zero Carbon Buildings Standard to the public at its Build Lasting Change Conference May 31-June 1 in Vancouver. The framework is the result of over 18 months of work led by Mark Hutchinson, the CaGBC vice president of green building programs. 

Property Biz Canada

European Commercial completes REIT conversion

European Commercial Real Estate Limited (ERE.UN-X) announced it has completed its prospectus offering of six million class-B common shares at a price of $5.00 per share for gross proceeds of $30 million. European Commercial REIT will be listed on the TSXV and it is expected the units will commence trading shortly following closing of the arrangement under the symbol “ERE.UN”.  

Marketwired

Allied Properties showing ‘strong fundamentals’: Desjardins

Shares of Toronto-based Allied Properties REIT (AP.UN-T) had their target price raised to $40 from $39 by Desjardins Capital Markets Friday, after earlier in the week reporting earnings in line with analyst expectations and backed by its commercial portfolio in Canada’s biggest city.  Approximately 40 per cent of Allied’s rental portfolio is in downtown Toronto. 

Financial Post – Property Biz Canada

Case for Infrastructure Bank ‘not compelling’: Researchers

A new report questions the need for a Canada Infrastructure Bank as debate heats up in the House of Commons over a government bill to launch the $35-billion federal entity. The University of Ottawa’s Institute of Fiscal Studies and Democracy argues the Liberal government has yet to make a compelling case for working with private investors.

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

Ex-RBC executive to replace Home Capital founder

Home Capital Group Inc. (HCG-T) has named a former RBC Capital Markets executive with experience in mergers and acquisitions to its board to replace founder and former CEO Gerald Soloway as the embattled mortgage lender explores its “strategic options.” Home Capital’s chairman of the board Kevin Smith also said the search for a new CEO has “made considerable progress.”

Fiancial Post – Globe and Mail – Bloomberg – CBC

Brightenview kicks off six-building complex at GTH

Enthusiasm was in the air Thursday in a field west of Regina, during the official groundbreaking of the Global Trade Exhibition Centre at the Global Transportation Hub. Local businesspeople attended the kickoff of Brightenview Development International’s six-building, $45-million “GTEC” complex, which will be a hub for Asian import and Saskatchewan export.

Regina Leader-Post – CBC

Clubhouse acquires Country Club Golf Course

The purchase of The Country Club Golf Course in Woodbridge led by the RGF Real Estate Fund L.P. was officially completed on May 3. The 290-acre property is a coveted parcel of prime land along the Humber River within the exclusive community of Woodbridge in Vaughan. The potential area for development is approximately one third of the acreage.

Canada Newswire

Pure Multi-Family commences property internalization

Pure Multi-Family REIT LP (RUF.U-X) announced it has commenced internalizing the property management function under its new division, PURE Management. The property management of Pure Multi-Family’s portfolio had previously been overseen by the Tipton Asset Group Inc. 

Marketwired

Melcor REIT sells Lethbridge industrial warehouse

Melcor REIT (MR.UN-T) announced it has completed the sale of LC Industrial in Lethbridge, Alta., for $8.0 million (excluding closing costs). “With this sale, we are freeing up capital for other opportunities while also achieving a good return on investment for unitholders,” REIT president/CEO Andrew Melton said in a statement. The property was purchased for $5.9 million  in January 2014. 

Marketwired

Breather breaks into Beantown

Breather, a Toronto-based startup that provides on-demand private workspace, is now in metro Boston, supplying anyone wielding a credit card and a mobile device with a turn-key suite on a moment’s notice, and giving office building owners and leasing managers a way to capitalize on that pesky remaining 500 square feet that’s been collecting dust.

CP Executive

Express to shutter all 17 Canadian stores

American-based clothing chain Express (EXPR-N) plans to close all 17 of its stores in Canada and discontinue its Canadian operations. The Ohio-based chain sells men’s and women’s clothing and currently has 650 stores in the U.S., Canada and Puerto Rico, and took in more than $2 billion US in sales last year. The chain entered Canada in 2011. 

CBC – Financial Post

Kit and Ace a cautionary tale of expansion

Retail executives and analysts are reflecting on how best to expand internationally in the wake of news Vancouver’s fashion house Kit and Ace will close all 32 of its stores outside of Canada. The biggest difference between Kit and Ace and most upstart fashion retailers is a billionaire family founded the company.

Business In Vancouver

Real Estate Companies

Firm Capital announces positive update on home sales

Firm Capital American Realty Partners Corp. (FCA.U-X) announced the repayment of approximately $6.5 million of the Senior Secured Notes and New Jersey Secured Promissory First Mortgage Note and provide an update on expected debt repayments and single family home disposition activities. 

Canada Newswire – Property Biz Canada – Property Biz Canada

REOC Financial Reports

Latest financial results:

* Altus Group Limited, (AIF-T), Marketwired   

* AutoCanada Inc., (ACQ-T),  Canada Newswire 

* Cara Operations Limited, (CARA-T),  Canada Newswire   

* SNC-Lavalin Group Inc., (SNC-T),  Canada Newswire 

* StorageVault Canada Inc., (SVI-X), Marketwired   

* Timbercreek Financial, (TF-T), Marketwired   

REIT Financial Reports

Latest financial results:

* CREIT, (REF.UN-T), Marketwired 

* Dream Global REIT, (DRG.UN-T), Marketwired 

* Dream Industrial REIT, (DIR.UN-T), Marketwired 

* Dream Office REIT, (D.UN-T), Marketwired

* Killam Apartment REIT, (KMP.UN-T),  Marketwired 

* Melcor REIT, (MR.UN-T), Marketwired 

* Morguard REIT, (MRT.UN-T), Canada Newswire 

* Partners REIT, (PAR.UN-T), Marketwired  

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

Real Estate Investment Trusts

Generation entity recommends NorthWest’s cash offer

NorthWest Healthcare Properties REIT (NWH.UN-T) today announced NorthWest Australia has reached an agreement with APN Funds Management Limited, the responsible entity of Australia’s Generation Healthcare REIT, to increase its offer price under its all-cash, unconditional, off-market takeover offer for all outstanding units it does not already own in generation from A$2.24 to A$2.30. 

Canada Newswire

Are shopping centre REITs dying?

Analysts are predicting e-commerce sales will increase 40 per cent by 2019. This will definitely come at the expense of brick-and-mortar retail stores, but will this mean many vacancies in shopping centres over the next few years? Consider SmartREIT (SRU.UN-T), a well-run shopping centre REIT that owns approximately 31.5 million square feet worth of leasable space and has 3,100 tenants. 

Motley Fool

RioCan to redeem preferred trust units

RioCan REIT (REI.UN-T) announced it will exercise its right to redeem all of its 5,980,000 outstanding cumulative rate reset preferred trust units, Series C on June 30 at the cash redemption price of $25.00 per Series C unit, for total redemption proceeds of $149.5 million. 

Marketwired – Marketwired – Property Biz Canada

Retail

Staples revamps marketing in bid to shed baggage

Staples Inc. (SPLS-Q) is overhauling its marketing as part of a high-stakes pivot away from what it was built on — selling low-priced office supplies at big stores. The rebranding campaign kicks off next week with nationwide television commercials in which stores are nonexistent and products are only shown in passing. There’s no mention of discounts either. 

Bloomberg

New Development

New wood-pellet plant coming west of Edmonton

A B.C. company plans to start construction this summer on an $85-million plant in Parkland County that will produce wood pellets as a greener form of fuel.

Pinnacle Renewable Energy Inc. intends to build the facility near the CN Rail line outside Entwistle, 100 kilometres west of Edmonton, according to a news release.

Edmonton Journal

Renovation and Restoration

CBRE’s new office design a game-changer

CBRE is setting a precedent for what professional offices should look like for today’s workers. Through its innovative Workplace360 program, the company is transforming its offices into technology-enabled, paperless, flexible work environments. CBRE has completed about 24 renovations in the U.S. and 50 globally, according to Workplace360 program manager Cicily Dostalek.

Forbes

Technology

Can Wal-Mart’s e-commerce operation compete with Amazon?

Last summer, Marc Lore, founder and chief executive officer of e-commerce startup Jet.com Inc., sat down to record a private video for the top officials of the world’s largest retailer: Wal-Mart (WMT-N). But Lore’s 40-minute presentation doesn’t hold back about the threat posed by its most fearsome and increasingly powerful archrival: Amazon.

Bloomberg

Other

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