In this weeks’ post, we want to highlight a significant 2018 transaction, which closed in late October. Form Real Estate Advisors Inc. and BMO Capital Markets Real Estate Inc. were retained in Q1 of 2018 by Partners Real Estate Investment Trust to facilitate and transact their 100% interest in eleven retail assets totalling 417,222 square feet of gross leasable area (“GLA”), located in the Provinces of British Columbia, Alberta, and Manitoba (the “Western Canada Portfolio”).
The Portfolio consisted of five grocery store and/or drug store anchored retail centres totalling 314,054 square feet (75% of the GLA) and six free-standing Shoppers Drug Mart buildings totaling 103,168 square feet (25% of the GLA).
While considerable interest was received on an individual asset basis, and on combinations of smaller portfolios, the Portfolio – less a single asset in Manitoba – was largely acquired by a Toronto-based, privately-owned real estate investment trust. One of the British Columbia grocery-anchored centres was secured by a BC private company with an existing leasehold interest in the centre.
The offering was well received in the marketplace, demonstrating continued demand from all purchaser profiles for daily needs retail offerings.
Additional investment highlights on the offering are as follows –
- National Tenancy – Predominantly leased to national covenant tenants, including: Shoppers Drug Mart, Save-on-Foods, London Drugs, Nesters Market, Liquor Depot, Bosley’s, and Royal Bank of Canada
- Excellent Income Security – Nearly 100% occupied, with only one unit available for lease across all properties
- Exceptional Local Market Positioning – Located in high growth retail nodes and occupying key locations with strong access and visibility characteristics
- Preferred Retail Asset Class – Benefit from little exposure to business disruption risk as a result of a tenant roster comprised of grocery and drug stores
To read the full press release from Partners REIT, please visit: http://investor.partnersreit.com/file.aspx?IID=4256966&FID=395056929