HBC, RioCan to sell Vancouver store for $675M: Source

HBC, RioCan to sell Vancouver store for $675M: Source

Canadian department store owner Hudson’s Bay Co (HBC-T) and joint venture partner RioCan REIT (REI-UN-T) have signed a conditional agreement to sell HBC’s flagship store in downtown Vancouver for about $675 million to an Asian buyer, a source told Reuters. The buyer, who owns a closely held real estate company, is seeking to arrange interim financing from at least one Canadian lender, according to the source.

Reuters

Agellan sells Toronto’s Parkway Place for $256.3M

Agellan Commercial REIT (ACR.UN-T) Saturday announced a third-party purchaser has agreed to purchase the approximate 824,000-square-foot-office property and approximate 42,000-square-foot retail space and parking garage located on Consumers Road in Toronto (Parkway Place) for approximately $256.3 million. “This disposition is a significant advancement in the REIT’s previously announced strategy,” said CEO Frank Camenzuli.

Stockhouse – Property Biz Canada

Vancouver has lowest office vacancy in North America: JLL

Metro Vancouver’s office vacancy has dropped to the lowest in North America, but gross office rents for the region remain among the most affordable, according to figures released by Jones Lang LaSalle (JLL). At 8.1 per cent, Metro Vancouver’s office vacancy, including suburban markets, is the lowest on the continent, below that of New York at 8.5 per cent, Toronto (8.6) and San Francisco (9.1), according to JLL’s Mark Trepp.

Property Biz Canada

Crown sells Mississauga office complex to Frastell

The two-building 6860 Century Avenue office complex in Mississauga has been sold by Crown Realty Partners to Frastell Associates Inc. in an off-market transaction for $21.75 million. “We were approached by a buyer looking for stabilized, well-managed suburban office properties for potential acquisition, and 6860 Century Avenue proved to be an excellent fit for their requirement,” said Crown asset manager Lauryn Pittana.

Property Biz Canada

Retailers begin moving into Balzac’s New Horizon Mall

The Calgary area’s newest mall is being billed as one unlike any other in Western Canada, and its 500 retailers are banking on its unique style to help them thrive once their doors open this summer. Located just north of the city across the road from CrossIron Mills shopping centre, the New Horizon Mall cost $200 million to build and was developed by the Torgan Group and MPI Property Group.

Calgary Herald – Property Biz Canada

Hugh Heron, Mattamy, Tridel big winners at BILD Awards

Hugh Heron’s companies have built more than 8,000 homes and more than a million square feet of commercial and retail space. His community involvement has an even more remarkable achievement – it has directly led to saving 39 lives . . . and counting. The night’s other two biggest winners, taking Home Builders of the Year honours, were Mattamy Homes for low-rise and Tridel for mid/high-rise.

Property Biz Canada

Is Canada missing the boat on expanding vital West Coast ports?

Robin Silvester, chief executive of the Port of Vancouver, fears for a future in British Columbia’s Lower Mainland that he calls “the missed the boat scenario.” It’s a situation where in a few decades, while places such as China, India, Brazil and Africa grow and drive international trade, the Port of Vancouver has lost local support and the Pacific Gateway’s hopes for economic prosperity have fallen short.

Financial Post

Phase 3 of Vancouver’s Cambie Corridor approved

More than 1,700 owners of detached housing lots in Vancouver’s Cambie Corridor could have their property rezoned for multi-family housing under the city’s Phase 3 Cambie Corridor approved by council this week. Land assembly agents say there has been plenty of interest from local house owners and developers in the potential for higher-density zoning.

Business In Vancouver – Global News

Harry Rosen announces lease of 100 Bloor Street West

Harry Rosen announced it has entered into a long-term agreement with the Ermenegildo Zegna Group, the worldwide leader in luxury menswear and one of the most renowned businesses in Italy, to open additional flagship stores under the Ermenegildo Zegna brand. The Canadian retailer has recently secured prominent space along Toronto’s Bloor Street West, steps away from its 55,000-square-foot flagship store.

Canada Newswire

Loblaw shareholders ask for CEO, chair to be separate

Can the CEO be his own boss? In a Loblaw Companies Ltd. (L-T)  shareholder proposal, the B.C. Government and Service Employees Union General Fund was set to ask the board at Thursday’s annual general meeting to adopt a policy the chair of the board be independent, and urges shareholders to vote in favour. At Loblaw, Galen G. Weston took on the dual roles of chairman and CEO last year.

Toronto Star – Toronto Star

Invesque announces U.S. partnership with Ellipsis

Invesque Inc. (IVQ-U-T) announced today it has entered into a development partnership with Ellipsis Partners located in Carmel, Ind. The partnership will provide Invesque exclusive access to Ellipsis’ pipeline of development projects. The partnership will focus on the development of seniors housing and medical office properties throughout the U.S.

Canada Newswire – Property Biz Canada

Markham sells itself as home of Amazon’s HQ2

The City of Markham is going it alone to position itself as the home for Amazon’s second North American headquarters. Markham — one of 10 cities that joined with Toronto to bid for the hub — tweeted a photo of a bright orange sign that dubs the city the “possible home of Amazon HQ2.” Toronto’s was the only Canadian bid to quality for the 20 finalists.

Ottawa Citizen – Property Biz Canada

Amazon halts plan for new Seattle office building

Amazon Inc (AMZN-Q) said it has halted planning for a new office building in Seattle and might sub-lease rather than occupy another future tower downtown, pending a city council vote on a proposed tax on top businesses. Amazon’s decision puts a question mark on more than 7,000 new jobs at those buildings.

Business Times

Blackstone to acquire Gramercy Property Trust for $7.6B

Continuing to see logistics as among the strongest sectors of commercial real estate, an affiliate of Blackstone Group (BX-N) has agreed to acquire Gramercy Property Trust (GPT-N) this morning for $7.6 billion. As of year-end 2017, Gramercy owned a portfolio of industrial, office and specialty retail properties totalling more than 82 million rentable square feet. The majority of that space, nearly 76 million square feet, is industrial.

CoStar Group – Reuters – The Real Deal

Greystar shopping $1.54B apartment portfolio

Greystar Real Estate Partners is shopping a 13-property apartment portfolio that is expected to command bids of about $1.54 billion Cdn.  The Charleston, S.C.-based multi-family giant has hired Eastdil Secured and Marcus & Millichap’s IPA division to market the 3,374-unit package, which includes properties in Washington, D.C.’s Northern Virginia suburbs, greater San Francisco and Southern California.

CoStar Group

Market Trends and Research

NYC hotel supply to hit another high note in 2018

The New York City hotel sector is facing the approach of peak supply levels this year, and the market must be able to digest those rooms if fundamentals are to improve. Industry watchers with their eye on supply are optimistic that 2019 should bring better days for hotel revenues after the market absorbs all the new rooms and construction slows. 

CoStar Group

REOC Financial Reports

Latest financial results:

* ReDev Properties, Canada Newswire

REIT Financial Reports

Latest financial results:

* City Office REIT, (CIO-N), PR Newswire

Real Estate Investment Trusts

GGP Inc. is a screaming buy

Shares of mall-focused REIT GGP Inc. (GGP-N) have plunged in 2018. Initially, the stock price fell due to ongoing worries about the so-called “retail apocalypse” and its effect on mall occupancy and lease rates. Then, in March, GGP’s board agreed to accept a buyout offer from Brookfield Property Partners (BPY.UN-T) valued at $23.50 per share — a price that was less than GGP’s net asset value.

Motley Fool – Property Biz Canada

Retail REITs selling at major discount

RioCan REIT (REI.UN-T) is the elephant in the room. It is the largest retail REIT as well as the largest REIT in Canada. It has nearly 300 properties across approximately million square feet of leasable retail property. As a smaller player, Plaza Retail REIT (PLZ-UN-T) has been harder hit. The stock is down 17 per cent from its 2017 high, while the company’s FFOPS is estimated to grow in line with inflation.

Motley Fool – Property Biz Canada

Retail

American Apparel returns with L.A. store

Los Angeles-based American Apparel is preparing to open a flagship store in its home city later this year, its first foray back into brick-and-mortar shops after all its locations closed following a bankruptcy process. Gildan Activewear Inc. (GIL-T), the Montreal-based company that bought American Apparel but not the physical stores in an auction last year, said the new location will complement e-commerce operations and serve to gauge trends.

Bloomberg – Winnipeg Free Press

In-store experiences main attraction for Gen Z

Generation Z (18 to 24 years old) are spending more time in physical retail stores. Beyond the traditional focus on shopping for their favourite products, the generation is using the retail experience to socialize, interact, and be entertained, according to PwC Canada’s Canadian Consumer Insights: Retail Evolution Report. Online sales still only represent 8.1 per cent of core retail sales in Canada. 

Canada Newswire

Cannabis industry news

Grow ops on B.C. farmland spark debate

With the legalization of recreational marijuana expected to tighten the vise on Vancouver’s already strained property supply, the question of whether to open protected farmland to grow operations is stirring fierce debate in B.C. Colliers International argued in a white paper last week locating marijuana greenhouses on the least arable portions of B.C.’s Agricultural Land Reserve (ALR) would be “a viable alternative.”

Financial Post – Globe and Mail (Subscription required)

New Development

Turkish developer unveils plans for $300M Miami tower

Billionaire Turkish developer Bekir Okan is launching plans for a $300 million, 70-storey hotel and condo tower in downtown Miami. Okan Tower will have a 294-room Hilton-branded hotel, 236 condo-hotel units, 153 condos, 64,000 square feet of class-A office space and a restaurant on the 67th floor. Okan Group unveiled the project at an event at its 3,000-square-foot sales gallery in Istanbul on Wednesday.

The Real Deal

China’s Greater Bay Area to welcome $3.2B SKYCITY

New World Development Company Limited has been awarded the tender for the city’s largest entertainment destination SKYCITY of Hong Kong International Airport (HKIA). Spearheaded by Adrian Cheng, executive vice-chairman and general manager of New World Development, the project will see a $3.2 billion Cdn investment by the group, while its theme will evolve round state-of-the-art technology, education and creativity.

PR Newswire

Infrastructure

Water flows through tunnels at $1.1B John Hart dam

After five years of burrowing though solid rock, water is flowing through underground tunnels at B.C. Hydro’s new John Hart hydroelectric facility near Campbell River. “This is a big achievement for the project team and work crews . . . five years in the making [since] B.C. Hydro and InPower B.C. worked out the agreement in developing this project,” said B.C. Hydro spokesman Stephen Watson.

Victoria Times Colonist

Human Resources

Real estate turns to tech to fill labour market gaps

Limits on the federal temporary foreign worker program, strains on the region’s transportation network and high housing costs for workers are putting the region on the path toward “crisis levels in terms of labour,” according to third-generation real estate developer Mike Bucci. Conditions have gotten so bad in the past year, Bucci Developments Ltd. is bringing in workers from Calgary operations to finish work on Metro Vancouver condos.

Business In Vancouver

Technology

How to develop a smart drone strategy

“In the next 10 years, the sky will be full of drones,” predicts Jonathan Hunter, CEO of Department 13, a publicly traded company based in Columbia, Md., that is developing commercial counter-drone technology. “It will be just as common to see a drone as it is to not see a drone.” Department 13’s Mesmer system can detect and mitigate drones in national security and defense situations.

Energy Manager Today

Other

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