Grosvenor Property Canada has acquired the remaining interest in Broadmead Village, a grocery anchored open-air shopping centre in Saanich, B.C., near Victoria, with future development or intensification potential.

Grosvenor and ADMNS, a subsidiary of the Manitoba Civil Service Superannuation Board (CSSB), had owned Broadmead Village in equal partnership since 1997. Grosvenor developed the property in the 1990s.

Robert Duteau, senior vice-president of investment for Grosvenor Property Canada, told RENX Friday this transaction is part of Grosvenor’s doubling down on its Canadian investment portfolio.

He said the company is seeking new opportunities in a thoughtful way and “really looking at where we have a competitive advantage."

The 128,018-sq.-ft. open-air neighbourhood shopping centre sits on 12.74 acres and is anchored by a Thrifty Foods grocery store. Duteau said the centre has been one of the best-performing assets within Grosvenor’s Canadian property portfolio, exemplified by continued leasing momentum — and the Thrifty Foods has been one of Sobeys’ strongest locations.

Grosvenor redeveloped Broadmead Village, named after the prized Victoria racehorse, in 2013, Duteau said.

Grosvenor bought the remaining 50 per cent stake of the Broadmead property for $47.75 million and will now earn the full annual net operating income of $6.4 million. The transaction values the property at approximately $95.5 million.

The centre also includes a Pharmasave, Mark’s, Starbucks and two banks among other shops and services. Broadmead represents Grosvenor's only retail asset on Vancouver Island, Duteau said.

"We're looking to grow our portfolio, our investment portfolio, in areas where we have expertise.”

Deal part of Grosvenor’s commitment to Canada 

The transaction exemplifies Grosvenor’s commitment to Canada, a region it’s been investing in for over 70 years.

“We view this purchase as an outstanding opportunity to further our investment into Canada. It highlights our strengths as an owner and manager and follows our track record of developing and operating exceptional mixed-use assets such as The Rise, Connaught and Grosvenor Ambleside,” Duteau said, referring to some of its other local properties.

“Furthermore, acquiring grocery-anchored retail at scale with future redevelopment potential is an approach we are very focused on here in Canada.”

The CSSB was pleased with Broadmead Village’s performance over the decades and Grosvenor’s transformation of the property into one of Vancouver Island’s top performing grocery-anchored retail plazas, said Ian Cameron, senior portfolio manager, real estate for Civil Service Superannuation Board (CSSB), in a release.

Annacis Island, Brentwood Block local focal points

Duteau said a major part of Grosvenor's future in Canada will continue to focus on its industrial holdings on Annacis Island in Delta, initially developed by the company in the 1950s.

"We continue to own 188 acres on Annacis Island and that's a significant focal point for our company moving forward."

He said Grosvenor will continue looking at new development opportunities with those parcels on Annacis.

Meanwhile, Grosvenor continues early construction work at Brentwood Block. It's a multi-phased, master-planned community located on a 7.9-acre site that encompasses an entire city block in central Brentwood in Burnaby, a rapidly growing city within Metro Vancouver. 

When completed, Phase 1 will provide 1,279 rental units, 451 condominiums and 160,000 square feet of retail and commercial space. Additionally, the site will be home to a new City of Burnaby community centre, public plazas and outdoor amenity spaces through separate financing.

The initial phase of development is occurring as a joint venture between Grosvenor, a Canadian pension fund, and B.C.-based investment firm Westerkirk Capital Inc.

Grosvenor is a London, England-headquartered owner and developer that has operated in the Lower Mainland of B.C. for over seven decades. Known for developing major projects, it has a development pipeline worth roughly $6.5 billion in North America.