First Capital’s Ottawa, Toronto portfolio for sale

First Capital’s Ottawa, Toronto portfolio for sale

A collection of 19 key urban assets painstakingly put together since 2011 is up for sale, the Financial Post has learned. Exclusive listing documents show First Capital Realty Inc., and its partners, have hired CBRE to sell what is being billed as “an exclusive urban retail and development” opportunity. Sources indicate the price range of the entire Main and Main portfolio would be $450 million to $550 million. 

Financial Post

Flames release details of lapsed arena offer

The Calgary Flames’ disclosure Thursday of their lapsed offer to put up $275 million for a new Victoria Park arena reignited debate over a saga that’s become a civic election political football. In a two-page newspaper ad, the Flames’ owners also revealed they once hoped to fund the arena with a $225-million infusion of public money to be paid back in the form of a community revitalization levy.

Calgary Herald – Globe and Mail – CBC – CTV

Skyline Apartment REIT exits Hamilton

Skyline Apartment REIT’s $173-million sale of 11 Hamilton apartment buildings to Q Management LP earlier this month fits the company’s historical strategy and will fill its coffers for new investments. “The bulk of our assets exist in secondary and tertiary markets,” said Skyline president Matthew Organ, adding Hamilton has evolved into more of a primary market.

Property Biz Canada

Summit buys another Toronto-area industrial property

Summit Industrial Income REIT (SMU.UN-T)  continued to snap up Toronto-area industrial properties with the announcement of a 255,000-square-foot acquisition near the Toronto airport. The 22-foot clear, light industrial property is in the Etobicoke industrial sub-market and is 83 per cent leased to two tenants.

Property Biz Canada – Property Biz Canada – Property Biz Canada

Revisions continue as Mirvish + Gehry project moves ahead

The development team behind the ballyhooed Mirvish + Gehry super-tall mixed-use project in Toronto has resubmitted plans for site plan approval and a project manager has confirmed the project, first unveiled five years ago, is still moving forward. The original plans called for three towers rising 86, 84 and 82 storeys and the demolition of a handful of heritage buildings.

Daily Commercial News

Downtown Winnipeg incentives must be renewed: Report

Downtown residential development will come to a screeching halt if the city and province fail to renew incentives to offset the high cost of such projects, warns The Special Report, prepared by the University of Winnipeg’s Institute of Urban Studies for CentreVenture Development Corp. Without incentives, Winnipeg could see a period of stagnation such as in the 1990s, the report says.

Winnipeg Free Press

Ottawa attempting to resurrect Sparks Street

The revitalization of Sparks Street has been an exercise in futility for half a century. It remains one of the greatest failures of urban vision in Ottawa. As part of the pedestrian mall’s 50th anniversary, the city is teaming up with the federal government to seek proposals on how to revive what has become a dead zone.

Ottawa Citizen

M3 Mortgage Group acquires Verico to create mortgage giant

Montreal-based M3 Mortgage Group, parent company of some of the most well known names in the residential mortgage sector, said Thursday it has added Vancouver-based Verico Financial Group Inc. in a move that grows its annual loan volumes from $25 billion to $44 billion. M3 Mortgage Group said the move gives its 6,000-broker strong company a presence spanning coast to coast.

Financial Post – Mortgage Broker News – Canada Newswire

Canadian retailers see potential NAFTA change as threat

A Canadian looking for a high-end men’s shoe can buy it from a major online retailer in the U.S. or get it for 25 per cent less at the bustling Eaton Centre mall in downtown Toronto. But that price advantage could end, potentially devastating Canadian retailers, if the U.S. gets one of the major changes it seeks while it renegotiates the North American Free Trade Agreement.

Calgary Herald

Mastermind Toys eyes Canadian expansion

Jon Levy’s favourite playthings as a Toronto child included Lego blocks and fort-building kits – classics that still fly off the shelves of his Mastermind Toy stores. “My true innovation in this business is being able to get inside my inner kid and determine whether it is something truly fun to play with,” said Levy, the chain’s co-founder, CEO and chief toy merchant.

Global News

Toys “R” Us retail experience outdated: Shopify CEO

Shopify (SHOP-T) CEO Tobi Lütke advised a crowd of aspiring merchants Wednesday night not to let their customers’ retail experiences fall by the wayside, lest their businesses end up like the ill-fated Toys “R” Us. Lütke borrowed a line from chief product officer Craig Miller when he told gathered merchants the retail industry is having its “Napster moment.” 

Ottawa Business Journal – Bloomberg – Bloomberg – 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.

 

Rebuilding likely to drive up costs, delay projects

With the clean-up comes a new set of challenges. Most notable is access to construction labour after a sharp upturn in contractors reported they are having difficulty finding skilled workers. It’s a trend certain to continue or worsen due to labour shortages in the wake of Irma and Harvey, according to the latest USG Corp./U.S. Chamber of Commerce Commercial Construction Index released this week. 

CoStar Group

CEOs worry an Ontario Amazon HQ would soak up tech talent

Ontario has so few available workers with high-technology skills it would be a “big problem” if Amazon.com Inc. chose the province to host a second headquarters, a panel of business executives has warned. Mayors from across Canada, including those in the Greater Toronto Area, have announced their intention to compete for the Seattle-based company’s second headquarters, dubbed HQ2.

Globe and Mail – Financial Post – Ottawa Business Journal – Bloomberg

U.S. immigration plan would challenge CRE: C&W

The Trump administration’s proposals for immigration policy reform would disproportionately affect certain industries, including commercial real estate, if enacted, Cushman & Wakefield says in a new report. “Legal, foreign-born workers fill 31% of buildings/grounds maintenance jobs and a quarter of construction positions,” says Revathi Greenwood, Americas head of research.

GlobeSt.com

U.S. CRE’s favoured tax code treatments facing uncertain future

The commercial real estate industry’s chief lobbying group Tuesday urged lawmakers to take a measured approach in deciding on changes to how commercial property and other corporate assets are taxed, cautioning that the elimination of the deduction for interest on debt and reducing the tax rate for pass-through business income could cause severe damage to the U.S. economy. 

CoStar Group

Singapore REIT snags office complex in Asia’s biggest CRE deal

BlackRock Asia Property Fund III is exiting its ownership of the Asia Square office complex in Singapore with the sale of Asia Square Tower 2. The buyer was locally based CapitaLand Commercial Trust, which is paying approximately US$1.59 billion, for the 778,719-square-foot tower. The deal represents Asia’s largest commercial real estate transaction year to date.

GlobeSt.com – IPE Real Estate – National Real Estate Investor

Market Trends and Research

Glass falls from Yorkville’s Four Seasons Hotel yet again

The outer pane of a double-paned glass window from the 19th floor of Yorkville’s Four Seasons Hotel broke away Thursday, causing “a large amount of glass” to fall onto the surrounding area, Toronto Fire Services say. No injuries were reported. This is the latest in a string of similar incidents “of glass falling coming from this same building,” Toronto Police Const. David Hopkinson said.

CBC

Capital being concentrated among largest RE managers

Capital concentration in the private real estate fund sector has reached unprecedented levels, with just five managers responsible for the 20 largest funds closed in the past 10 years, a new report reveals. Alternatives data firm Preqin said in the past decade the 100 largest private real estate fund managers had collectively secured 62% of all fundraising for the asset class.

IPE Real Estate

Real Estate Companies

Chester to rejoin Mainstreet as chief investment officer

Mainstreet Health Investments Inc. (HLP.U-T) announced Adlai Chester is rejoining the management team as the chief investment officer. Adlai was instrumental in the launch of the company, holding the position of chief executive officer until January 2017. Chester‘s career spans more than 15 years, with experience in finance, real estate, investments, development, and capital markets. 

Canada Newswire

	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

AHIP executives purchase more than 225,000 units

Three senior executives at American Hotel Income Properties REIT demonstrated their confidence in the company’s future by recently acquiring 225,620 units. In the last five weeks Rob O’Neill, CEO, purchased 60,000 units followed by Ian McAuley, president, and Azim Lalani, CFO, with 100,020 units and 65,600 units, respectively. 

Marketwired

U.S. equity REITs keep development exposure in check

Development exposure prudence remains the norm for U.S. equity REITs, with issuers in most property types keeping exposures manageable for the foreseeable future. REITs are still showing discipline throughout this post-crisis cycle. In fact, outside of multi-family and industrial, modest growth in tenant demand for space is keeping development opportunities in check.

CP Executive

Retail

Calgary retail sector shows signs of rebound

Overall retail vacancy in Calgary decreased slightly to 2.9 per cent in Q3 2017, according to Barclay Street Real Estate’s latest market update released today. Approximately 1.2 million square feet  of inventory is now available for lease; a net decrease of 41,000 sf since mid-year. Rental rates in Calgary’s suburban markets remained stable, supported by strong demand for space in or near new residential areas.

Barclay Street Real Estate media release

Simons launching new app in nod to e-commerce

Simons department store chain is launching a new app as part of its plan to grow its e-commerce business. “We really felt the need to close that gap between e-commerce and our physical and digital footprint,” said Peter Simons, president of the Quebec-based company. The company spent about two years working on the app and invested as much as $4 million into the venture, he said.

Ottawa Business Journal – Ottawa Business Journal

Restaurants and Eateries

Quebec fast-food restaurants closing due to labour shortages

With unemployment at its lowest rate in decades, Quebec’s fast-food industry is struggling to find staff — some being forced to shut their doors altogether. The latest casualty is a KFC restaurant in Lévis, Que. Despite a social media recruitment campaign and wages above the $11.25 minimum, the restaurant was unable to lure a sufficient number of workers to remain in operation.

CBC

RBI taking legal action against Tim Hortons franchisees

The clash between the parent company of Tim Hortons and some of its restaurant owners is intensifying, with both sides vowing to take legal action. Daniel Schwartz, CEO of Restaurant Brands International Inc. (QSR-T), told an internal Tim Hortons all-franchisee conference call it has taken legal action against a group of restaurant owners over confidential information it says was leaked, and “negative” comments about Tim Hortons. 

Globe and Mail (Subscription required) – CTV – Windsor Star

New Development

Fortress receives permit for Capital Pointe project

The company behind the Capital Pointe mixed-use development has a further six months to begin foundation construction after the City of Regina issued another building permit, the latest in a series of stops and starts on the project and developers. Westgate is the name on the building permit, but Fortress Real Developments Inc., now handles the project.

Regina Leader-Post

Hyatt hotel planned for McMaster’s Innovation Park

Hamilton’s research and innovation hub is soon-to-be home to a new $20-million, 134-unit Hyatt hotel. Toronto-based development consortium No. 16 Hospitality will construct the five-storey Hyatt House Hamilton to face Highway 403 in the McMaster Innovation Park (MIP) Campus. The Longwood Road South location is approximately two kilometres from McMaster University.

Daily Commercial News

Other

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