Sears’ demise could be a blessing for some malls

Sears’ demise could be a blessing for some malls

Sears Canada Inc. (SCC-T) has occupied a large end lot at the Cottonwood Mall in Chilliwack, B.C., since the retail emporium opened in 1974. The only original anchor tenant remaining, at close to 96,000 square feet, Sears is also the mall’s largest. Sears’ announcement it will not be able to operate without new financing might be bad news for Cottonwood Mall. 

Financial Post – Business In Vancouver – Bloomberg – Toronto Star

Retail REIT spinoffs outperforming parents

As Hudson’s Bay Co. (HBC-T) faces renewed pressure to squeeze value from its real estate holdings, the company’s investors can take solace in knowing it’s been a winning formula for other Canadian retailers. REITs spun off from Canadian stores including Loblaw Cos. (CHP.UN-T) and Canadian Tire Corp. (CRT.UN-T) have consistently outperformed the retail parent when dividends are factored in.  

Bloomberg – Toronto Star

Mixed-use not always a slam-dunk success: Part I

Municipalities are pushing for mixed-use developments when granting building permits, but planners should be wary of forcing them where they don’t belong. “Municipalities are often pushing a well-intentioned, but tone deaf requirement of having a certain amount of retail with anything that’s multi-storey,” said SmartREIT (SRU.UN-T) chief development officer Mauro Pambianchi.

Property Biz Canada – Property Biz Canada – Property Biz Canada

ReDev Properties sells Edmonton shopping centre

ReDev Properties has closed the sale of the Whitemud Crossing shopping centre in Edmonton. The 93,353-square-foot retail centre is located at 4211 106th St., in a busy Edmonton residential area. It is fully leased and contains 34 tenants, a mix of national and local businesses.

Property Biz Canada – Property Biz Canada – Property Biz Canada

Cost-sharing pitch aims to spur Edmonton industrial

City councillors endorsed a new way of funding industrial growth Tuesday, one intended to make Edmonton more competitive.  The first developer to work on undeveloped land will still be responsible for building main roads and sewer lines for the larger area. The initial developer will then be reimbursed with tax dollars.

Edmonton Journal

TO losing millions on Union Station commercial space

Union Station is losing money and the city needs to take immediate action to avoid losing millions more in the future, Toronto’s auditor general warns in a new report. Over the last five years, the city made some $59 million from leasing out commercial space in the massive commuter hub, but operating that space cost $62 million.

CBC – Toronto Star

Feds to fill long-empty EDC tower space

The federal government is set to expand its downtown footprint after subleasing long-vacant space in the head office of the Export Development Corp. Public Services and Procurement Canada has signed a 10-year lease to rent more than 37,000 square feet of space on two floors at EDC headquarters at 150 Slater St. 

Ottawa Business Journal

Hamilton is ready for its close-up

Here’s a free film idea. Our hero, once an underling, starts hitting above his weight in the global arena. Through diligence (and tax incentives), he emerges as a prize fighter. It could be a Sylvester Stallone retread, but it’s also the story of Toronto and Hamilton and the film industry’s heft in the CRE market.

Globe and Mail

How Calgary has prepared for the next big flood

Four years ago, Calgary and surrounding areas were devastated by flooding. The water spilled over the banks of the city’s two major rivers in June 2013, causing millions in damage and the death of Calgary’s Lorraine Gerlitz. The city got to work, and with the help of both the federal and provincial governments, set about making a flood-resilient city.

CBC

Fund to help revitalize Calgary’s downtown core

The City of Calgary has set aside $10 million to help revitalize a struggling downtown, amid a record-high office vacancy rate that’s expected to worsen when two new towers open this fall. Council approved taking $10 million from the rainy-day fund to start the Economic Development Investment Fund, which will respond to the ongoing economic downturn, in a 14-1 vote.

Calgary Herald – Calgary Sun – Global News

SNR Group unveils first Calgary project

Montreal’s SNR Group has moved into Western Canada with its first project in Calgary after more than 70 years of developing properties in Quebec and the eastern United States. Principal Monty Steckler purchased a prime piece of land in trendy Marda Loop where construction is now underway on a mixed-use residential and retail building. 

Calgary Herald

Walmart should still terrify Amazon and Whole Foods

Investors are grossly overestimating the impact to Walmart (WMT-N) of Amazon‘s (AMZN-Q) bid for Whole Foods (WFM-Q), according to Moody’s Investors Service. Amazon’s offer of $13.7 billion, or $42 a share, for the natural and organic grocery chain won’t give the ecommerce giant “any discernible edge” over Walmart, writes Charlie O’Shea, Moody’s lead analyst, in a research note published Wednesday. 

Business Insider – Business Insider – CNBC

Amazon’s real agenda behind Whole Foods bid

There’s always a fine line between creative disruption and creative destruction. Such is the beastly nature of capitalism. Amazon‘s (AMZN-Q) nearly $14 billion bid for Whole Foods (WFM-Q) is about more than just acquiring a means to sell high-end food products online. It’s about busting the supply chain in an ancient business.

Forbes – Globe and Mail – Business Insider – Forbes

Origin leading the way in crowdfunding

The real estate crowdfunding industry is projected to be valued at more than $300 billion by 2025. One of the driving forces has been the low barrier to entry, and the ability for investors to enter larger real estate deals with smaller capital amounts. This has allowed companies like Origin Investments to raise more than $130 million for its third fund.

Forbes – Property Biz Canada

China’s RE investors on a global spending spree

In 2015, Wendy Wei Mei Wu, a self-described billionairess housewife, bought a $5 million New Zealand island as a “toy.” In 2016 a Chinese tycoon purchased a $270 million Hong Kong home, and HNA Group acquired a $6.5 billion stake in Hilton Worldwide Holdings (HLT-N). In 2017, CC Land Holdings shelled out $1.47 billion for London’s “Cheesegrater” skyscraper. 

CNBC

Market Trends and Research

Plotting population change in Canada’s largest cities

Infographic: There are many topics (e.g., relating to demographics, housing starts, etc.) that cry out for compelling ‘short-hand’ visualizations. Whichever path is followed, the point of the journey, almost always, is to reach a bottom line or two. To provide additional value at its corporate blog site, ConstructConnect is now pleased to offer an ongoing series of Infographics.

Daily Commercial News

Real Estate Investment Trusts

Summit announces bought deal equity offering

Summit Industrial Income REIT (SMU.UN-T) has entered into an agreement with a syndicate of underwriters to sell, on a bought deal basis, 8,490,000 units at a price of $7.07 per unit for gross proceeds of approximately $60 million. In addition, Summit has granted the underwriters an over-allotment option to purchase up to an additional 1,273,500 units on the same terms and conditions. 

Marketwired

U.S. apartment REITs feeling the pinch

While the struggles of mall REITs are no secret given Amazon’s increased dominance of the retail sector, U.S. investors may also contemplate putting apartment REITs on their warning lists. Although apartment real estate investment trusts have done well this year — and since the end of the housing crisis, in general — rent growth is starting to slow.

MarketWatch

Non-traded REITs: Go mainstream or die

Improving transparency and liquidity, as well as lowering fees, are at the top of the to-do list for the non-traded U.S. REIT market in 2017, challenges that will force the industry to transform and usher in new ways of doing business and new types of sponsors.

CP Executive

Retail

Big shakeup coming to Alberta’s Liquor Stores

A dominant liquor store chain in Alberta is expected to undergo a big transformation — including renovations and rebranding at all Canadian stores — when new directors take control of the board following a bitter proxy fight. Edmonton-based Liquor Stores N.A. Ltd. (LIQ-T), had attempted to fend off a challenge from its largest shareholder. 

Calgary Herald – Financial Post

Retailers see red over brands setting up their own stores

Cookware retailer Fred Pritchard doesn’t mince words when it comes to how he feels about brands selling directly to consumers. “They’re doing it because they’re greedy and they want the retail price,” Pritchard says.

Toronto Star

Restaurants and Eateries

Tim Hortons franchisees launch suit against RBI

A group of Tim Hortons franchisees have launched a $500-million class-action lawsuit against parent company Restaurant Brands International (QSR-T) for mismanagement of the brand, accusing the chain’s owners of making it harder for them to stay in business. The Great White North Franchisee Association say their costs have increased, but RBI hasn’t allowed them to raise prices.

CBC – Montreal Gazette – CBC

Sports Venues

The long road to new Mosaic Stadium

A brainstorm during a rainstorm pushed the once-unthinkable Mosaic Stadium project over the goal-line. The “eureka” moment occurred on June 9, 2012 at Saskatoon’s Griffiths Stadium, where the Saskatchewan Roughriders were holding their annual Green and White Day during training camp.

Regina Leader-Post – Regina Leader-Post

International

Even parking spots are costly in Hong Kong

In many places, US$664,000 can buy you a nice house. For that price in Hong Kong, you can buy a slab of concrete, roughly 17 feet long and 11 feet wide, to leave your luxury car. Hong Kong is now home to a very expensive parking spot, the latest sign of a property market run amok.

Financial Post

Other

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