Sears Canada executive in talks for deal: Sources

Sears Canada executive in talks for deal: Sources

Struggling retailer Sears Canada Inc’s top executive is negotiating a private-equity backed deal that could be valued at more than $650 million, the Wall Street Journal reported, citing sources. Executive chairman Brandon Stranzl last month stepped away from day-to-day operations to focus on plans for the company. The proposed offer would reduce the company’s store footprint by more than half.

Reuters

B.C. ports receiving major upgrades

The gatekeepers of Canada’s rich agriculture exports are spending hundreds of millions of dollars to upgrade export terminals as they prepare the country to become an ever-growing bread basket to the world. Canadian grain shipments have been steadily rising and hit a record high in the last crop year. And Canadian companies are making long-term bets on the growth of crop exports.

Vancouver Sun

Rivershore capitalizes on B.C.’s industrial revolution

PC Urban Properties’ IntraUrban Rivershore project is literally an island of opportunity in a sea of soaring demand for industrial space in British Columbia’s Lower Mainland. Construction is set to get underway this fall on the commercial condominium development located on Mitchell Island in the Fraser River smack-dab between Vancouver proper and Richmond.

Property Biz Canada

Granite acquires US$122.8 million Ohio, Mississippi portfolio

Granite Real Estate Investment Trust (GRT.UN-T) announced it has agreed to acquire a portfolio in the United States consisting of approximately 2.2 million square feet of gross leasable area in three properties at a purchase price of US$122.8 million. Two of the properties are located in Monroe, Ohio, 30 miles north of Cincinnati and the third in Olive Branch, Miss., 27 miles southeast of Memphis

Canada Newswire

Agellan REIT rejects Sandpiper Group demands

Agellan Commercial REIT (ACR.UN-T) announced today its board of trustees has received, considered and rejected a demand from Sandpiper Group the REIT undertake, among other things, a substantial reorganization of the board, including majority control by Sandpiper’s hand-picked nominees. 

Canada Newswire

CAIC panel tackles best practices for older buildings

Older apartment buildings need to be treated differently from new properties when it comes to buying, selling and maintaining them, and a panel of key players discussed their strategies at the Sept. 6 Canadian Apartment Investment Conference in Toronto. More than 80 per cent of apartment buildings in Canada are considered older assets, according to Colliers International managing director Karl Innanen.

Property Biz Canada

Two of Vancouver’s newest apartment buildings for sale

Two of Vancouver’s newest rental apartment buildings are on the sales block. The two buildings — for sale by the same owner — are a 2015 four-storey 37-unit purpose-built rental at 2215 East Hastings Street listed for $21.8 million and a 2014 four-storey 34-suite building at 2778 East Hastings listed for $18.5 million. Both properties are listed by HQ Commercial.

Property Biz Canada

Cinespace building two new Etobicoke film studios

Toronto’s booming film, video and digital production industry, limited only by the availability of studio space and crews, is getting a boost. As stars and moguls landed downtown for the just-ended Toronto International Film Festival, Mayor John Tory and Cinespace Film Studios executives were in Etobicoke breaking ground on two new studios and connecting space totalling 50,000 square feet.

Toronto Star – CBC – Global News

Winnipeg-area water park gives way to mixed-use development

A dozen years after Skinner’s Wet ’n Wild water park saw its last swimmer just east of Winnipeg, the former attraction is being demolished. Santa Fe Developments has plans to build housing on the 34 acres that stretch from River Road to Highway 9. Its website says it is planning to begin developing single-family, multi-family and commercial developments.

Winnipeg Free Press

Calgary offers to cover one-third of new Flames arena

The Calgary Flames and their city are taking their negotiations public on a new NHL arena projected to cost $555 million. The city proposed paying a one-third share of $185 million, with Calgary Sports and Entertainment paying another third and the remaining third paid for via a surcharge on tickets sold to events in the new building.

Toronto Star – Globe and Mail – Maclean’s – Sportsnet.ca

Fear of Whole Foods disruption seen as RE opportunity

Patient real estate investors stand to gain from the fears of disruption such as the one that rattled the grocery industry after Amazon.com Inc.’s takeover of Whole Foods, according to MetLife Inc. (MET-N) The narrative about the death of brick-and-mortar retailers is likely overdone, MetLife Investment Management said in a report released Thursday. 

Bloomberg

	U.S. hurricanes’ impact on real estate
	The following section of the RENX newsletter is dedicated to news about Hurricanes Harvey and Irma in the U.S. and its impact on real estate.

 

What can Texas CRE owners expect in Insurance process?

It’s been weeks since Hurricane Harvey made landfall in Rockport, which lies along the southeastern coast of Texas. While emergency response efforts in the wake of the massive storm, which dumped a record-setting 51 inches of rain on the region, may be winding down, the insurance process for commercial and residential property owners is just getting underway.

National Real Estate Investor – Globe and Mail

Canadian snowbirds will face higher insurance costs

Canadian snowbirds lucky enough to escape property damage from Hurricane Irma will still face higher costs as insurance providers jack up premiums and condo associations levy special assessments, say insurance experts. “We’re probably looking at an across-the-board 15 to 20 per cent increase in property insurance costs over the next year,” says Brad Hubbard, Tampa owner of an insurance agency.

Toronto Star

Windsor to join Detroit in bid for Amazon HQ

In what would be a “game-changer” on many fronts, Windsor plans to piggyback on Detroit’s bid for e-commerce giant Amazon’s multi-billion-dollar city investment. Amazon founder and CEO Jeff Bezos said it could mean a US$5 billion up-front capital investment eventually housing 50,000 staff members.

Windsor Star – Globe and Mail – Markets Insider – CBC

Brookfield’s London skyscraper rises above uncertainty

Construction is chugging along at 100 Bishopsgate, a 37-storey glass and steel tower being developed in a joint venture that’s owned by Brookfield Properties (BPO.PR.X-T ). “Although 100 Bishopsgate will not be the tallest building in the City of London, upon completion it will be the largest single building in the City,” says Martin Wallace, head of leasing for Brookfield’s British office division. 

Globe and Mail

Brookfield Infrastructure shows how to raise cash

When Brookfield Infrastructure Partners LP (BIP.UN-T) announced last week it was raising $1  billion US through an equity offering, its units fell more than four per cent on the news, snuffing out a promising rally that had begun a month earlier. A deeper look at Brookfield’s extensive track record reveals why this latest offering is actually good news in the longer term. 

Globe and Mail (Subscription required)

Canada flagged as hidden credit bubble stokes crisis fears

The world’s top financial watchdog has uncovered US$14 trillion of global dollar debt hidden in derivatives and swap contracts, a startling sum that doubles the underlying levels of offshore dollar credit in the international system. The scale of this lending greatly increases the risk of a future funding crisis if inflation ever forces the U.S. Federal Reserve to tighten in earnest.

Calgary Herald

Market Trends and Research

Top five cybersecurity threats to real estate businesses

With attacks that can misdirect wire transfers and hold computer systems hostage, hackers can successfully target any industry, particularly those behind the curve for cybersecurity. According to a recent report prepared by KPMG, 50 per cent of surveyed businesses in the real estate industry believed they were not adequately prepared to prevent or mitigate a cyber attack.

National Real Estate Investor

The 10 office markets with the fastest-growing rents

SLIDESHOW: Getting a good return on investments in the U.S. office sector may become a little harder over the next few years, but it should still be possible as long as you bet on markets with outsized rent growth. Where are these markets? A new report from real estate services firm CBRE indicates the 10 U.S. markets.

National Real Estate Investor

Real Estate Companies

	RENX 2018 media kit now available
	A blended ad program, take-over advertising, writing services and a second weekly edition of Property Biz Canada in 2018. Advertising that reaches thousands of professionals in the commercial real estate industry every business day. Contact sales@renx.ca, 1-855-569-6300

 

Real Estate Investment Trusts

U.S. industrial REITs experience unprecedented success

Bolstered by the surge in e-commerce, U.S. industrial REITs have become the belles of the industry ball. Propelled largely by the e-commerce boom, industrial rents have grown more than 5.5 per cent annually over the past two years in the top 50 U.S. markets, says Eric Frankel, lead industrial analyst at Green Street Advisors, a Newport Beach, Calif.-based firm.

National Real Estate Investor

Three REITs to buy for a growing income stream

As of June 30, SmartREIT‘s (SRU.UN-T) portfolio consisted of 152 properties, including 142 retail properties, eight development properties, one office property, and one mixed-use property. Granite Real Estate Investment Trust (GRT.UN-T) is one of the world’s largest industrial REITs. Plaza Retail REIT (PLZ.UN-T) is one of Canada’s largest retail REITs. 

Motley Fool

Retail

Dollar Tree names Gary Philbin new CEO

U.S. discount retailer Dollar Tree Inc (DLTR-Q) said today Bob Sasser will be replaced as chief executive by Gary Philbin, the company’s enterprise president, effective immediately. Sasser will become executive chairman of Dollar Tree’s board, the company said. Philbin, 60, joined Dollar Tree as senior vice president of stores in 2001 and was named chief operating officer six years later. 

Reuters

U.S. retail sales post biggest drop in six months

U.S. retail sales unexpectedly fell in August, likely hurt by the impact of Hurricane Harvey on motor vehicle purchases, suggesting a moderation in consumer spending in the third quarter. The Commerce Department said on Friday retail sales dropped 0.2 per cent last month, the biggest decline in six months. Data for July was revised to show sales increasing 0.3 per cent instead of the previously reported 0.6 per cent jump.

Globe and Mail

Restaurants and Eateries

Getting Za Pizza ball rolling

Manly Cheung, the 34-year-old founder of Za Pizza Bistro, is opening new Za restaurants at a dizzying pace — four this year alone in Winnipeg. Cheung said Za expects to open six or seven more franchised outlets in Winnipeg over the next 18 to 24 months, and at least three in the Greater Toronto Area in 2018.

Winnipeg Free Press

Tim Hortons franchisees seek price hikes to offset rising wages

Some Tim Hortons franchisees, saying they’re already being pinched by their parent company, are pushing it to approve price hikes to help cover the cost of pending minimum wage increases in Ontario and Alberta. The Great White North Franchisee Association was formed in March by unhappy franchisees to fight parent Restaurant Brands International Inc.’s (QSR-T) laser focus on efficiency. 

Globe and Mail – Canada Newswire

New Development

MYM’s Laval cannabis facility will soon be underway

MYM Nutraceuticals Inc. (MYM-CN) announced the City of Laval, Que., has approved building permits for MYM to begin construction on its Laval cannabis production project. Phase one of the Laval facility will permit production of 1,000 kilograms of medical cannabis annually, representing approximately $7 million in gross revenue for the company, a media statement issued recently said. 

Daily Commercial News

Renovation and Restoration

Toronto’s Exhibition Place needs a makeover

Exhibition Place is looking sad these days. The fairground is one of Toronto’s richest historical sites, and its management – run by the city – keeps on tearing down important buildings, and adding new ones that keep getting bigger and getting worse. Towering over the Ex was the newest addition, which is scheduled to open this year, Hotel X.

Globe and Mail

Infrastructure

How politics drives transit planning in Toronto

It was the first time Transportation Minister Steven Del Duca had faced reporters since the controversy began. The press conference at a GO station in Burlington had nothing to do with the province’s plan to build a series of new stops. But the minister had not yet directly answered why two proposed locations had been approved against expert advice.

Toronto Star

Technology

Facebook hires two Canadian AI experts for new Montreal lab

Two of Canada’s top artificial intelligence experts are joining Facebook Inc., the latest in a string of renowned Canadian academics in the hot technology field to go to work for Silicon Valley giants. Joelle Pineau, associate professor of computer science at McGill University and co-director of its Reasoning and Learning Lab, will lead a new Montreal-based AI lab for the Internet giant.

Globe and Mail (Subscription required)

Equifax CIO, CSO retire after breach disclosed

Senior officials at many organizations are able to escape the fallout from data breaches, at least publicly. However, when the breach reaches a certain size some firms have to show the public they’re taking the catastrophe seriously. That appears to be the case at Equifax (EFX-N), which announced chief security officer Susan Mauldin and chief information officer David Webb have retired. 

IT World Canada – Toronto Star – CBC – Toronto Star

Other

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