Dream Office sells Scotia Plaza stake to KingSett

Dream Office sells Scotia Plaza stake to KingSett

Dream Office REIT (D.UN-T) will sell its 50 per cent stake in Scotia Plaza, plus a portfolio of other assets, to Kingsett Capital as part of a $1.7-billion disposition. The REIT says the sales are an “acceleration of its strategic plan.”  Dream says the Kingsett portion of the disposition is worth $1.4 billion, while $300 million in other assets are being sold to different purchasers. 

Property Biz Canada – Marketwired

SNC-Lavalin sells Montreal HQ to GWL Realty

SNC-Lavalin Group Inc. has sold its Montreal headquarters tower and leased it back for 20 years, confirming its commitment to maintain its head office in Canada. Canada’s largest engineering and construction firm said it finalized the sale of the 21-storey building to GWL Realty Advisors for proceeds of $170 million. The transaction includes an empty lot next to the tower.

Globe and Mail – Winnipeg Free Press

Off-market deal spikes Nexus REIT’s value

Nexus REIT‘s  (NXR.UN-X) recent purchase of a half stake in a Quebec portfolio of Sandalwood Management properties represents about a 50 per cent increase in Nexus’ gross book value to about $450 million. The purchase price for the 1.53 million square feet of gross leasable area works out to about $97 per square foot, “well below any replacement value,” co-CEO Kelly Hanczyk says. 

Property Biz Canada – Property Biz Canada – Property Biz Canada – Property Biz Canada

AHIP REIT buys large hotel portfolio in U.S.

American Hotel Income Properties (AHIP) REIT (HOT.UN-T) has closed on the acquisition of 18 premium-branded Marriott and Hilton hotel properties in the Eastern United States for approximately US$407.4 million. The Eastern Seaboard Portfolio consists of 10 Marriott-branded hotels and eight Hilton-branded hotels in Maryland, New Jersey, New York, Connecticut and Pennsylvania. 

Property Biz Canada

RioCan expects minimal impact from Sears closures

RioCan REIT (REI.UN-T) foresees miminal impact from the announcement Sears Canada is closing 59 stores, “The announcement by Sears is a much different situation for RioCan than when Target announced their filing in 2015,” said CEO Edward Sonshine. “Our exposure to Sears is far lower, and we have been preparing for just this situation at many of these locations for some time now. 

Marketwired – Globe and Mail – Calgary Herald – Saskatoon StarPhoenix

Buffett’s company buys into Home Capital

Home Capital Group Inc. (HCG-T) shares surged higher Thursday on news it has arranged $400 million in equity investments and other financial support from companies run by billionaire investor Warren Buffett. A subsidiary of Berkshire Hathaway (BRK.A-N) will also also provide a new $2-billion line of credit on better terms than provided by the Healthcare of Ontario Pension Plan (HOOPP).  

CBC – Financial Post – Globe and Mail (Subscription required) – Bloomberg

Mixed-use declined in popularity in U.S.: Part II

Mixed-use developments were a trend in the United States about 15 years ago, but have cooled in the past decade according to Jim Arbury, the retired former senior vice-president of the National Multifamily Housing Council in Washington, D.C.,  who was speaking at the North American New Apartment Construction and Mixed-Use Symposium and Expo.

Property Biz Canada – Part I: Property Biz Canada

Granite REIT shakeup ‘wake-up call’: Sandpiper CEO

The fight for control of Canada’s largest industrial landlord was a nasty, public ordeal, the likes of which is much more common in the U.S. But in successfully shaking up the board of Granite REIT (GRT.UN-T), a group of dissident investors may have helped fuel a revival of Canadian shareholder democracy, said Samir Manji, CEO of Vancouver-based Sandpiper Group. 

Globe and Mail (Subscription required)

Dream Global announces German lease renewals

Dream Global REIT (DRG.UN-T) announced Deutsche Post has agreed to renew the leases for 70 properties expiring in 2018, totalling 2.5 million sf of gross leasable area or approximately 18 per cent of total portfolio GLA. This represents the largest lease renewal in the trust’s history and results in a retention ratio of 90 per cent. 

Marketwired

Hamilton ponders scrapping development grants

It’s yet another sign Hamilton is booming. The city is stepping up plans to look at scrapping a program that spurs downtown development, saying it might not be needed anymore. The city already reviews a program — called the downtown and community renewal improvement plan — every five years, said Jason Farr, Ward 2 councillor.

CBC

Walmart could enter Whole Foods bidding war: JPMorgan

Walmart (WMT-N) could step in as a rival bidder for Whole Foods Market (WFM-Q) as shares of the grocery chain rose above the $42 price offered by Amazon (AMZN-Q) earlier this month. JPMorgan research analysts said Wal-Mart could be drawn to Whole Foods for its relatively wealthier customers and strong brand, not to mention the chance to thwart Amazon’s ambitions.  

CNBC – Bloomberg – Business Insider – MarketWatch

C.D. Howe pushes seaport privatization in Canada

Canada’s four largest seaports represent a potential $3 billion cash boon to Ottawa, according to a recent C.D. Howe Institute report. Casting Off: How Ottawa Can Maximize the Value of Canada’s Major Ports and Benefit Taxpayers estimates the potential equity from involving private investment in Canada’s major port operations ranges from $2.6 billion to $3.4 billion.

Business In Vancouver

Victoria developer Butterfield dead at 69

David Butterfield, the visionary developer who has been described as a warrior, rebel and force of nature, has died after a short battle with kidney cancer. He was 69. Butterfield took a derelict industrial site in James Bay and turned it into the award-winning Shoal Point development.

Victoria Times Colonist

Canada’s first ‘pod’ hotel coming to B.C.

What’s being touted as Canada’s first pod hotel will open in Whistler next spring. Construction is currently underway on the $10-million Pangea Pod Hotel, a property consisting of 88 self-contained ‘sleeping pods’ spread across several custom suites, located in the middle of Whistler’s popular Village Stroll. It is slated to open in April.

Vancouver Sun – Canada Newswire

The most lucrative real estate on the planet

The U.S. wireless market is already mature, so giants like AT&T are looking south, where the revolution is still in the throes of profitability and billionaires are now being minted. But the best opportunity is the $75.6-billion cell tower market and the entry point is Tower One Wireless (TO-CN).

Baystreet.ca

Featured Column

If you thought railways had a major impact on RE . . .

It took only 30 years for the railway to reshape the British landscape, the British economy and the very fabric of British society. But as profound as that change was, it came at a glacial pace by today’s standards. The march of progress, for good or ill, reshapes the kind of real estate we need.

Read more

Market Trends and Research

Malls of Texas vision of shopping’s future

Scott Beck remembers riding his bike as a child to Valley View Center. Now, the bustle of shoppers has been replaced by the din of construction — led by Beck, whose company is clearing the way for a new $3.5-billion development of restaurants, offices and housing. “We’re not trying to repurpose the mall,” Beck said. “We’re simply repurposing the land.”

New York Times

Real Estate Investment Trusts

Pure Multi announces equity offering

Pure Multi-Family REIT LP (RUF.U-X) announced it has entered into an agreement with a syndicate of underwriters to sell on a bought deal basis, 8,940,000 class-A units of Pure Multi-Family at a price of $8.95 per unit , for gross proceeds to Pure Multi-Family of $80.013 million. 

Marketwired

U.S. multi-family REITs decelerating: Moody’s

Moody’s predicts the operating performance of US multi-family REITs will continue to decelerate this year. It expects net operating income (NOI) growth for multi-family REITs to slow to about 2.7 per cent by the end of 2017, down from 5.5 per cent growth at year-end 2016. The deceleration reflects increased apartment supply, coupled with a reduction in job growth.

CP Executive

Retail

How Henry’s competes with Amazon

For decades, the camera and electronics chain Henry’s has built a reputation for high-touch service at its stores in Ontario, Manitoba and Nova Scotia. Their camera and electronics professionals are known for sharing tips and advice to customers looking to buy the latest in new equipment, learn new skills or discuss gear-related trends.

Globe and Mail

Retail sales surpass April expectations

Retail sales in Canada were better than expected in April as they rose 0.8 per cent to $48.6 billion for the month. Excluding sales at motor vehicle and parts dealers, retail sales climbed 1.5 per cent. Economists had expected an overall gain of 0.2 per cent and an increase of 0.7 per cent, excluding autos, according to Thomson Reuters.

CBC

The most popular shopping chain in each state

PHOTO GALLERY: While more and more Americans turn to online shopping for their food and clothing needs, plenty still prefer to visit brick-and-mortar stores. The location intelligence company Foursquare put together a list of the most popular department stores, clothing stores, and big box store chains in each state across the U.S.

Business Insider

Latest financial results:

* Birks Group Inc, (BGI-A), Canada Newswire 

Other

	RENX has surpassed 9,975 Twitter followers
	Recent follower B.C. Energy Step Code is a provincial standard which aims to create healthier, more efficient, more comfortable new buildings.
	Follow RENXca, the most comprehensive news feed on Twitter for Canadian real estate professionals.