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Strathallen Capital continued to build its investment capacity with the recent closing of its fourth closed-ended Canadian retail value-add property fund.
“We’ll continue to look for retail investments across Canada with leasing upside, redevelopment potential and/or full development opportunities,” said Strathallen president Laetitia Pacaud. “We’ve got a proven track record of generating solid returns for our investors, and we’ll aim to continue this with Fund 4.”
Strathallen Capital Corp. recently raised $250 million for its Retail Property Fund Limited Partnership No. 4, which is co-invested in by Canadian institutional investors and Strathallen partners and marks the largest fund raised by the Toronto-based real estate services company to date.
Strathallen provides investment management, property management and strategic advisory services to institutional and high net worth investors. The new fund brings the company’s investment capacity to more than $700 million.
“We’ve got a lot of work to do, but we have a track record of investing effectively and with agility,” said Pacaud. “I’m confident that we’re positioned to execute.”
“The pipeline looks strong,” added Strathallen executive vice-president of investments Jonathan Saguy. “I believe we’re poised to have another strong year for acquisitions.”
Nortown Centre in Chatham, Ont.
Strathallen announced its 13th and final addition to Strathallen Retail Property Fund Limited Partnership No. 3 (SRF3) on Feb. 1.
Nortown Centre, acquired from Riocan REIT, is a 71,423-square-foot, grocery-anchored shopping centre with ample parking within one of the primary retail nodes in Chatham, Ont., a city of approximately 45,000 people three hours west of Toronto and one hour east of Windsor/Detroit along Highway 401. The mall’s major tenants include Food Basics, Dollar Tree, PartSource and CIBC.
“This asset is anchored by a grocery store, has a strategic location and strong national tenants, so it fits well into the fund’s strategy,” said Saguy.
Strathallen has also disposed of three properties across Canada over the past two months.
Properties sold in New Westminster, Port Alberni and Dartmouth
Strathallen Retail Property Fund Limited Partnership No. 2, CBC Pension Fund and its partner Vermont Property Group sold Royal City Centre in New Westminster, B.C. in January. The redevelopment strategy of the centre resulted in the construction of a two-storey, 110,000-square-foot Walmart, which added significant value to the property and solidified its place within the market.
Strathallen also disposed of Pacific Rim Shopping Centre in Port Alberni, B.C. on behalf of SRF3 and 590-600 Windmill Road in Dartmouth, N.S. on behalf of Strathallen Retail Property Fund Limited Partnership No. 1 in December.
“Those assets were purchased several years ago for our value-add retail funds,” said Saguy. “We’ve since executed on investment strategies that created value for our investors. It was the right time to sell.
“In the case of New Westminster, we formed a new relationship with an international buyer and we’ve been retained as the property manager. As more of our investments reach optimal value, we’ll be making more dispositions throughout the year.”
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