Drive to privatize Canadian airports lifts off

Drive to privatize Canadian airports lifts off

Canada should sell its eight largest airports to raise between $7.2 billion and $16.6 billion for infrastructure investments, according to a recent report from Canadian think-tank C.D. Howe Institute. The study rejects arguments from airport and airline executives that privatizing Canadian airports will raise airfares and reduce services for passengers. Instead, it argues the reverse.

Business In Vancouver

Milestone confirms ‘three unsolicited advances’

The spotlight is again being shone on Milestone Apartments REIT (MST.UN-T), whose assets are all in the U.S. The first look came in July when the REIT announced an internalization of its asset management activities. The second is occurring now thanks to a proposed transaction where Starwood (STWD-N) will acquire the company for US$16.15 a share. 

Financial Post – Property Biz Canada

Vacant retail space in B.C. rejigged as self-storage

A lack of self-storage businesses for sale in B.C. is leading to new developments and conversion of shopping mall space into storage lockers. With average vacancy rates south of 10 per cent and capitalization rates north of five per cent, there is little incentive for owners to sell, said Vadim Kobasew of Re/Max Commercial.

Business In Vancouver

Condo corporation pushes for sale to Anthem

Owners in a 58-unit condominium development are petitioning the British Columbia Supreme Court (BCSC) to dissolve their Coquitlam strata corporation so it can be sold to Anthem Properties Group Ltd. for $32 million even though nine owners oppose the sale. This is the second time a strata corporation has petitioned BCSC to allow it to dissolve under Bill 40.

Business In Vancouver

Strong demand brings industrial strata to Mount Pleasant area

The meta-narrative for Vancouver real estate is one of strong demand and tight supply, and this is especially true of industrial. Typically one step up from agricultural land, it faces pressure from competing uses and rising land values. It’s tough to make the economics work. 

Business In Vancouver

B.C. considers transit tax for builders

Local politicians are willing to look at the idea of a provincial transit-supporting levy on developers building high-density projects near transit corridors to offset transit costs. But a spokesman for the housing industry said there’s a limit to the tax burden developers can be realistically expected to pay and that any new levy would impact affordability.

Victoria Times Colonist

Ottawa should partner with private sector on infrastructure

One takeaway from the recent Parliamentary Budget Office report on the federal government’s performance on its massive $187-billion infrastructure plan is Ottawa isn’t spending money fast enough. With infrastructure spending, it is more important the government fund projects that are “shovel worthy” rather than throwing money at projects that are “shovel ready” to meet artificial deadlines.

Globe and Mail

Calgary rethinks 17th Avenue overhaul

The city is re-evaluating plans for a major reconstruction of 17th Avenue S.W. in response to concerns of business owners along Calgary’s vibrant stretch of restaurants, bars and shops. The $44-million project’s current plan includes sections of the popular strip being completely closed for months at a time.

CBC

Rising interest rates could hamper CRE: TD

Rising interest rates could pummel Canada’s CRE moving forward, TD Economics says. “Developments of the past several weeks have highlighted what could be the No. 1 risk facing Canada’s (CRE) outlook over the coming years — the possibility of higher interest rates,” the TD Bank’s research department said in its Canadian Commercial Real Estate Outlook.

BuzzBuzzNews – GlobeSt.com

Buffett signals death of retail as we know it

Warren Buffett’s Berkshire Hathaway (BRK.A-N) has sold off $900 million of Walmart (WMT-N) stock, choosing to invest billions in airlines instead. The sale, which leaves Buffett with nearly no shares in Walmart, comes as the US’s largest traditional retailer has been rushing to catch up to Amazon and other online competitors.

Business Insider – Reuters

Wal-Mart to tear down walls between store, online buying

Wal-Mart Stores Inc (WMT-N) for the first time will combine its own buying for products sold at its stores with purchases it makes for its website, sources said, a significant move to stamp out duplicate efforts as it consolidates buying operations to better fight Amazon.com Inc (AMZN-Q).

Reuters – Motley Fool

Shopify caps off monumental year

Coming off a strong holiday retail season, Shopify Inc. (SHOP-T) executives were in a cheery mood as they shared details of the company’s fourth-quarter earnings results in a call to investors and media this morning. The Ottawa-based e-commerce giant brought in revenues of $130.4 million in the fourth quarter ending Dec. 31, 2016, representing an 86 per cent increase from the same period a year previous.

Ottawa Business Journal – Ottawa Citizen – Globe and Mail

CPPIB invests in Japanese real estate fund

The Canada Pension Plan Investment Board (CPPIB) committed $375 million in Hong Kong-based PAG’s real estate investment vehicle Secured Capital Japan Real Estate Fund VI, hinting at its continued interest in Asia’s real estate segment. The fund is focused on distressed debt and off-market acquisition opportunities in CRE.

DEALSTREETASIA – Globe and Mail (Subscription required)

SoftBank to acquire Fortress Investment

In a deal that has some market analysts scratching their heads, Japanese telecom giant SoftBank Group Corp. announced the surprising move of buying New York private-equity firm Fortress Investment Group LLC (FIG-N) for $3.3 billion US in cash. Fortress, an alternative-asset manager with $70.1 billion in assets under management, is a major investor in U.S. real estate.

CoStar Group – Rreuters – Japan Times – StreetInsider.com

Secondary trading sets record in 2016: CBRE

Trading of real estate funds on the secondary market reached reached a new record in 2016, according to CBRE. The company recorded 187 “secondaries” transactions worth $2.43 billion US across its global network. In a similar study last month, Landmark Partners said said it recorded 99 secondaries deals in 2016, representing $5 billion in value.

IPE Real Estate

Market Trends and Research

B.C.’s food processing industry helps fuel economic growth

Small enterprises and microbusinesses are fuelling growth in B.C.’s food processing industry, which accounts for almost 20% of the province’s manufacturing revenue. Small businesses, with fewer than 50 employees, make up most of the $9.1 billion industry that’s made up of more than 950 companies.

Business In Vancouver

Victoria CRE markets looking up: Colliers

The region’s retail and office real estate sectors appear poised for a strong 2017 after setting the table last year with improvements in vacancy rates and new supply, according to a new report by Colliers International’s Victoria office. The Colliers market report for office, retail and rental housing paints a healthy picture for the region.

Victoria Times Colonist

Coworking spaces aplenty in Montreal

With more and more people choosing to work outside of traditional offices, savvy entrepreneurs have met the demand with innovative coworking spaces and work-oriented cafés across the city. These trendy workspaces guarantee fast Wi-Fi and bonuses like free coffee and networking events.

Montreal Gazette

Real Estate Companies

Yorkville strip mall owner pays no tax

As Toronto homeowners begin receiving their property tax bills in the mail, the owner of a trendy strip on the city’s Mink Mile won’t be paying anything at all. The freebie is part a 66-year-old special arrangement between the city and Victoria University — a college of the University of Toronto — which owns a half-block-long piece of land on which The Colonnade sits.

CBC

Marketing Werks opens first Canadian office

Marketing Werks announced today its expansion into Canada with the opening of its Toronto office. This new location represents its entry into the global marketplace, a first for the 30-year-old agency headquartered in Chicago. Marketing Werks — a CROSSMARK company — offers a full range of integrated marketing solutions.

Canada Newswire

N.B. to provide grants, land for private companies

The New Brunswick government is introducing sweeping reforms to local government that will give municipalities new powers to hand out grants and other incentives to businesses. Environment and Local Government Minister Serge Rousselle introduced the two bills in the legislature on Wednesday morning.

CBC

Alberta government paying for empty air hangar

The Alberta government has paid $4.9 million since 2013 to the owners of a now-empty air hangar at the Edmonton International Airport, where its fleet of airplanes were once housed. The amounts paid to Airside Properties Ltd. and Airside FBO Operations Ltd. were contained in the Blue Book posted on the Alberta Finance website.

CBC

REOC Financial Reports

Latest reports:

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

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

REIT Financial Reports

Latest reports:

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

* H&R REIT, (HR.UN-T), Canada Newswire 

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

* Morguard North American Residential REIT, (MRG.UN-T), Canada Newswire

Real Estate Investment Trusts

What could cause apt. REITs to be more active?

If Fannie Mae and Freddie Mac were to pull back or exit the multi-family-lending space, apartment REITs could see their cost-of-capital advantage grow, an incentive for them to increase their participation, Green Street Advisors analyst Conor Wagner told attendees at the company’s latest webinar Tuesday,

GlobeSt.com

Retail

Canadian shoe designer opening second Montreal location

Canadian shoe designer John Fluevog is set to open his second store in Montreal on Saturday. Fluevog’s unique designs are sought the world over, with the designer having 21 locations worldwide. Stars like Beyonce and Lady Gaga have worn them. The new Montreal store will be at 180 St-Paul W. in Old Montreal, joining the St-Denis St. location in the city.

Montreal Gazette

Best Buy built brand by focusing on customers

Late last November, a video shot at a Best Buy (BBY-N) store in Halifax went big on Twitter. The scene: staff lined up near the front door, applauding, as dozens of customers strolled in to kick off Black Friday. That week on The Tonight Show, host Jimmy Fallon used the footage to illustrate the difference between Americans and Canadians. 

BCBusiness

Cineplex profit takes hit in fourth quarter

Cineplex Inc.’s (CGX-T) fourth-quarter profit plunged 70 per cent in 2016 from the previous year, forcing full-year profit down 42 per cent from the record year 2015 led by the great success of Star Wars: The Force Awakens. Fourth-quarter profit was $23.3 million Cdn, or 37 cents per share, down sharply from $77 million, and $1.22 per share, from the same period last year.

Globe and Mail – Winnipeg Free Press

Canadian Tire’s stock on a roll

Canadian Tire‘s (CTC-T) convenient locations and broad selection of sporting goods, automotive products and household items have helped it carve out an enduring niche in Canadian retail. And that, in turn, has made the stock a great investment. Over the past five years, shares of the Toronto-based company have posted a compound annual price return of 16.8 per cent. 

Globe and Mail (Subscription required)

Restaurants and Eateries

Tim Hortons owner in bid to buy Popeyes: Sources

Oakville-based Restaurant Brands International Inc (QSR-T), owner of the Burger King and Tim Hortons fast-food chains, has approached Popeyes Louisiana Kitchen Inc (PLKI-Q) about a possible acquisition, sources said on Monday. Shares of Atlanta-based Popeyes moved sharply higher on the news in afternoon trading.

Reuters – Bloomberg

McDonald’s sells majority of Hong Kong stake

In a deal worth US$2.08 billion, McDonald’s (MCD-N) said it will sell 80 per cent of its fast-food restaurant business in Hong Kong and mainland China to the largest Chinese international trust company and U.S. private equity firm Carlyle Group.

Western Investor

New Development

G. Bird Holdings planning Tunney’s Pasture strategy

The slow-moving plan to redevelop the office complex at Tunney’s Pasture in Ottawa inched forward late last month after the federal government contracted a firm to prepare a “phasing strategy” to guide the process. Consultants have been working on a redevelopment plan for the sprawling complex since at least 2009. 

Ottawa Business Journal

Edmonton delays decision on sale of Quarters land

The City of Edmonton’s executive committee is delaying a decision on whether to sell a piece of river valley land for a proposed 80-storey hotel and condominium. A portion of the steep, sloped river valley would have to be sold to the developer of the Quarters Hotel and Residences to go forward with the project, which would be Edmonton’s tallest building. 

CBC

Curtain closer to rising on Upper Sackville arts centre

A cultural group in Upper Sackville, N.S., can begin fundraising for a multimillion-dollar arts centre now that a site for the facility has been secured. The municipality has given the Cobequid Cultural Society the go-ahead to use land next to a future park-and-ride lot on Margeson Drive.

CBC

Renovation and Restoration

Ottawa launches consultation on Chateau Laurier expansion

The City of Ottawa has struck an expert working group​ and launched a website to gather public feedback on the proposed expansion of the Fairmont Château Laurier after public criticism forced a redesign of the original proposal. 

CBC – Ottawa Citizen

Infrastructure

Washington state budgets for Vancouver high-speed rail study

While linking Vancouver, Seattle and Portland via high-speed train is not a new idea, the project is back on the metaphorical rails after Washington Governor Jay Inslee set aside $1 million in his 2017-2019 state budget to study the feasibility of the infrastructure project.

CBC

Canadian utilities exploited ‘lazy’ balance sheets at U.S. rivals

For the past year, CEOs at Canada’s largest utilities have taken advantage of what they privately like to call “lazy” balance sheets at their U.S. rivals to stage a series of bold takeovers. Led by massive acquisitions from pipeline companies Enbridge and TransCanada, six domestic businesses spent approximately $87 billion in the past 12 months snapping up U.S. firms.

Globe and Mail (Subscription required)

Hydro-Quebec gets green light for new power line, station

Hydro-Québec has the go-ahead to build a new power line and station in Montreal’s West Island. The Quebec Ministry of Sustainable Development, the Environment and the Fight Against Climate Change released a statement Monday afternoon announcing the public utility has the green light.

CBC

Other