Crestpoint purchases assets and land to expand industrial portfolio | RENX
Crestpoint Real Estate Investments Ltd.The aggressive approach to industrial acquisitions continued with the recent purchase of a portfolio of four properties in Ottawa from Properties of Huntington for just over $ 50 million.
“We have increased our industrial exposure in all kinds of different industrial buildings, which has allowed us to increase our visibility in the Ottawa market, which we love,” Crestpoint executive vice president told RENX, Elliott Altberg.
“Since March 2020, we have leased close to four million square feet of industrial space. Three-quarters of this were newly built industrial developments.
“We have also purchased 350 additional acres of land in the GTA and have another 250 acres under contract in Montreal, the GTA and surrounding areas. We have purchased over $ 400 million in assets in industrial space representing just over two million square feet.
Components of the Ottawa portfolio
Lloyd Douglas Solutions occupies 130 Iber Rd. and Induspac is at 140 Iber Rd. in Stittsville. Advanced commercial interiors is at 2355, boul. and Group of medical pharmacies is located at 1100 Algoma Road. in Ottawa. They have a weighted average lease term of just over five years and weighted average rents of just over $ 10.
“We have rent marches in several of them,” Altberg said. “The tenants are strong and have been around for a while and the market is very good with low vacancy rates, so we think we’re going to have a very stable cash flow portfolio for a while.”
Altberg said there were opportunities to expand a few buildings, but his business acquisition strategy was not based on potential expansion. Crestpoint will talk to tenants about expanding their footprint, but the status quo will remain for now.
Ottawa Market and Off-Market Offers
Business fundamentals across Canada are good for the industrial sector and Ottawa is no exception. Altberg said risk-adjusted returns are more attractive in the nation’s capital than in some other major markets.
“Ottawa is a central market. It is a rapidly growing market. It is a high cash flow market. It has many of the same types of tenants as other major markets and experiences many of the same e-commerce and industrial logistics phenomena as other markets. It will benefit in a very similar way.
Apart from the properties and their locations, entering into an off-market deal was also attractive to Crestpoint, as it did not need to compete with other bidders at a time when industrial properties are a very popular commodity.
“We have a bunch of industrial building polls across the country and talk to industrial officers all the time,” Altberg said.
“Crestpoint has a very good reputation for closing deals and acting very quickly to get trades under contract and ensure that we follow them up.”
The industrial growth of Crestpoint
Crestpoint has made two big name industrial acquisitions in the past nine months as well as a few smaller purchases.
The company acquired the fully leased 731,000 square foot South Surrey Business Park in Surrey, British Columbia, in December.
Crestpoint purchased the 846,000 square foot, five-building Northport Business Park in Edmonton in February. The property also includes 16.5 acres of outdoor storage yards and 42.8 acres of excess serviced land that could support an additional density of 700,000 square feet.
Peak point, Brocolini and Blackwood Partners inaugurated a 1.1 million square foot site last October Amazon distribution center on a 58 acre site at GTA East Industrial Park from Crestpoint to Salem Road and Rossland Road East to Ajax, east of Toronto. It will open this fall.
Crestpoint also invests in the office, retail and multi-family residential sectors and manages just over $ 6 billion in assets.
Connor, Clark & Lunn Financial Group Ltée. – a multi-store asset management company whose subsidiaries collectively manage more than $ 96 billion in assets for individuals, advisors and institutional investors – owns 50 percent of Crestpoint.
Senior management at Crestpoint owns the other half.