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PROPERTYlines
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Issue No. 4 – November 15, 2020



Editor/Publisher, Mark Kolke

Contact me at your convenience: kolke@markkolke.com
PROPERTYlines ~ monthly re-cap of news, commentary, perspective – commercial real estate ~ for investors, property professionals, lawyers, lenders, accounting and insolvency practitioners; presented by Mark Kolke - publisher of FACILITYCalgary and HOUSING TRUTH
ARCHIVED PREVIOUS ISSUES
+ October 2020
+ September 2020
+ August 2020
BUSINESS TRAVEL
+ change of travel patterns of Canadians; report from Booking.com
CLIMATE CHANGE, LEED & RENEWABLE ENERGY
+ Alaska Airlines and Microsoft signed a deal – established a partnership to reduce carbon emissions for flights powered by sustainable aviation fuel; focuses on sustainable practices through the supply chain
+ Boralex Inc. commissioned 11MW wind farm in France; Blanches Fosses wind farm in the Aisne region
+ Emissions Reduction Alberta announced a commitment of $280.0 million to support ERA programs
+ Greenfield Global acquired a Minnesota Fuel Ethanol Plant; the Corn Plus facility mixes ethanol with gasoline
+ Incentives for Large-Scale Carbon Capture and Storage – Climate Action & Economy White Paper released by the International CCS Knowledge Centre and RSM Canada
+ the federal government announced a new program; $750.0 million for oil & gas companies to reduce methane emissions: Emissions Reduction Fund, $675.0 million onshore, $75.0 million offshore
+ The Wedge, a sustainable residential tower, started construction; 93 unit/15-storey in downtown Victoria is designed to meet LEED Platinum standards, will be complete in early 2023; the design preserves a historic chapel on the site
+ U.S. Energy Information Administration (eia) published its International Energy Outlook 2020 – big focus on electricity/renewables
CONSTRUCTION NEWS + BUILDING OPERATIONS / INNOVATIONS
+ Alberta tabled prompt-payment legislation; + Alberta’s Builder’s Lien (Prompt Payment) Amendment act will modernize process; renamed the act as the ‘Prompt Payment and Construction Lien Act’, to be in force by July 2021 – a great description of it in this article from the folks at Osler
+ are you cleaning, or disinfecting? … great article discusses this issue – Seeing the “bigger pictures” and what building operators and property managers need to focus on
+ BOMA Canada 2020 National Award Winners; click for all
+ Day & Zimmermann acquired EMC Power Canada Ltd.; terms not disclosed
+ Edmonton’s $84.5 million renovations of Stanley A. Milner Library in downtown Edmonton completed; re-opened amid wide criticism of the design; check out the time-lapse video
+ Edmonton’s $2.6 billion Valley Line West LRT project – construction team picked: Colas Canada, Parsons Corp, Standard General, Francl Architecture, Fast & Epp, and Stantec
+ Government of Alberta announced short-listed contractors for a news schools package; shortlisted consortia will now respond to an RFP: Alberta Partnership for Learning, Concert-Bird Partners, and Plenary-Maple High Schools
+ Government of Canada announced $1.75 billion in funding for internet infrastructure in remote areas
+ international photography competition 2020 – Architecture section – check out these 32 great buildings
+ Jensen Hughes acquired CFT Engineering; terms not disclosed
+ Lafarge Canada Inc. acquired Mixcor Aggregates Inc.
+ Partnerships BC issued RFQ for $377.9 million Dawson Creek hospital project
+ Peter Jacobs awarded the 2020 Governor General’s Medal in Landscape Architecture
+ Site C Dam – diversion tunnels open
+ surface burning – testing explained
+ Urban Life Solutions Inc. acquired P. Munro Group and John Sweeping
+ WSP Canada Inc. named prime consultant for $30.0 million subway capacity Line 1 upgrade for Toronto Transit Commission
 
CORPORATE RESPONSIBILITY + ESG REPORTS
+ a survey of private equity firms done by ERM (they do ESG reports) suggests that firms who do an ESG report to better – probably solid data, but it’s also a message of feeling good by hanging out with other people who feel good too; and yes, in the end, it’s about doing good …
+ Enbridge Inc. published its new ESG goals
+ International Petroleum published its 2019 Sustainability Report
+ Kinder Morgan published its 2019 ESG report
+ Lululemon Athletica published its 2020 Impact Agenda
+ Morneau Shepell released its annual Corporate Social Responsibility Report
+ Ovintiv Inc. published its 2019 Sustainability Report
+ Tamarack Valley Energy Ltd. released its 2020 Sustainability Report
+ Tervita Corporation published its inaugural Sustainability Report
+ Vermilion Energy Inc. released its 2020 Corporate Sustainability Report
+ Waste Connections Inc. published its 2020 Sustainability Report
DATA CENTER TRENDS
+ Blackstone and Corporate Office Properties Trust formed a JV; to develop 1.3 million sq. ft. of new data center space in Virginia
ENERGY
+ Purolator experimenting with electric/low-speed vehicles for urban logistics improvement and to expand its zero-emission fleet
ENTITLEMENTS ~ REGULATORY
+ Calgary city council holding the line; 11 new residential communities denied approval; to be revisited in 2022; council should not be surprised – these projects are all ring-road triggered related long term projects by developers who deserve to move their project down the development path they’ve been committed to. The 14-0 vote without a compromising attitude by the council is short-sighted …
FINANCING NEWS & INNOVATION
+ Brookfield Business partners agreed to acquire 100% of mortgage default insurer Genworth MI Canada, now operating as o/a Sagen MI Canada by acquiring the 47% it didn’t already hold; firm valued at $3.8 billion
+ PIMCO’s take on Bank of Canada v. the Fed policies on monetary policy
+ RSP published their Volume 7 issue of The Real Economy; free download
INFRASTRUCTURE + P3
+ Alberta Electric System Operator (AESO) is planning a Fast Frequency Response energy storage procurement process: here’s the scoop according to Osler
+ Algonquin Power & Utilities Corp. completed its acquisition of Bermuda Electric Light Company Limited for US$365.0 million
+ Aecon Group Inc. JV achieved financial close on it’s Kicking Horse Canyon Project Phase 4; $440.6 million
+ Airdrie exchange – 40th Avenue and the QEII; $83.0 million exchange and bridge to be started in early 2021; the City of Airdrie putting up $62.0 million, GOA contributing $21.1 million
+ Alberta Transportation is considering road and bridge tolls for new projects; the Kenny government introduced Bill 43 (Financing Alberta’s Strategic Transportation Act) to put a structure in place allowing toll road and bridges
+ Algonquin Power & Utilities Corp. closed its acquisition of Bermuda Electric Light Company Limited
+ Canadian Pacific agreed to acquire 83.5% stake in the Detroit River Rail Tunnel from OMERS et al for US$312.0 million to now hold 100%
+ City of Edmonton chose Marigold Infrastructure Partners to build/finance its $2.6 billion - 14 km. Valley Line West LRT line
+ Enmax Corp. agreed to sell its downtown Calgary District Energy Centre to Atlantica Sustainable Infrastructure plc for $27.0 million
+ Fengate Asset Management closed its acquisition of Freeport Energy Center from Calpine Corporation; 260MW natural gas-fired cogeneration facility inside Dow Inc.’s Texas Operations park
+ Government of Alberta announced shortlisted contractors for a news schools package; shortlisted consortia will now respond to an RFP: Alberta Partnership for Learning, Concert-Bird Partners, and Plenary-Maple High Schools
+ Government of Canada announced $1.75 billion in funding for internet infrastructure in remote areas
+ Hydro-Quebec is investing $750.0 million to refurbish its Carillon generating station; work from 2021-27 will produce 753MW of installed capacity; Andritz is partnering-supplier
+  Innergex Renewable Energy Inc. and the Pituvik Landholding Corporation achieved closing of a $92.8 million non-recourse construction and term project financing for the construction of Innavik, a 7.5 MW run-of-river hydroelectric facility on the Inukjuak River near Inukjuak, Nunavik, in northern Quebec; total capital cost will be $127.8 million
+ Imperial Oil started-up its new cogeneration unit at its Strathcona Refinery; expected to produce 41MW, about 75-80% of the refinery’s requirement; costs not disclosed
+ Infrastructure Canada announced and re-announced several water-related projects for southern Alberta; two in Calgary …
+ NCC (National Capital Commission) launched its RFQ call for redevelopment of LeBreton Flats property; the proposal call involves ‘the Library parcel’ portion of the lands
+ Q-Energy sold its Spanish solar assets (73 photovoltaic plants / 216MWh capacity) to Caisse de dépôt et placement du Québec; terms not disclosed
+  TransAlta Renewables Inc. commenced commercial operation of its 10 MW WindCharger battery storage project; WindCharger is Alberta's first utility-scale, lithium-ion energy storage project and utilizes Tesla Megapack technology. It has a nameplate capacity of 10MW and total storage capacity of 20MWh - acquired from TransAlta Corporation, the capital cost of approximately $14.5 million, 50% funded by Emissions
INSOLVENCY
INVESTMENT/DEALS - development / re-development
+ Edmonton Northlands Coliseum will meet the wrecking ball; redevelopment will be in stages
+ Kaneff Group of Companies broke ground on its Keystone Condos project in Mississauga
+ SmartCentres got approval to change the land use on a Cambridge, ON site; 73-acre site rezoned from strictly retail use; the plan is for up to 10,000 residential units over a 10 to 20-year development horizon
INVESTMENT/DEALS - hospitality
+ Great Canadian Gaming Corporation agreed to sell itself to Apollo Global Management Inc. for $3.3 billion
+ take a work-cation? … some Vancouver hotels are offering ‘day room’ rates so people working away from their offices can work away from home – no doubt welcome revenue to COVID impacted hotels
+ hotels >> to long term rentals? … conversion after the recent sale of two Ottawa properties
INVESTMENT/DEALS - industrial, storage, logistics
+ Blackstone acquired a portfolio of UK logistics facilities from Prologis for £473.0 million/€515.0 million 
+ Brookfield Asset Management agreed to sell its Simply Self Storage business (120 facilities / 23 states) to Blackstone REIT for $1.6 billion
+ Canadian Pacific Railway Limited made a multi-year agreement with A.P. Moller-Maersk to move freight through ports of Vancouver and Montreal
+ FedEx Express Canada opened its small package sort facility in Etobicoke, ON; sorts 22,000 small e-commerce shipments an hour, 24/7 operation …
+ General Motors Corp. announced it struck a union agreement and will invest $1.3 billion to reopen its Oshawa, ON assembly plant to assemble trucks and create 1,700 jobs
+ Purolator experimenting with electric/low-speed vehicles for urban logistics improvement and to expand its zero-emission fleet
+ StorageVault Canada Inc. agreed to acquire 14 properties (13 stores and one land parcel) from six sellers for $220.0 million
+ U-Haul reported to have acquired 90,000 sq. ft. former Calgary Sun building at 2615 – 12 St. NE from Post Media; originally listed at $6.2 million two years ago – sales terms not disclosed
INVESTMENT/DEALS - multi-res
+ CIBT Education Group acquired two Vancouver apartment towers (111-doors) for student housing
+ Homestead Land Holdings Limited portfolio traded; 9 buildings/1,024-doors in Hamilton, London & Sarnia, ON - $220.7 million sale to InterRent REIT & CAP REIT
+ Northview Canadian High Yield Residential Fund closed its $1.8 billion acquisition of a 378-property portfolio from Northview Apartment REIT
+ Pinnacle International is developing a new project on former Expo86 lands in Vancouver; the 55-story building will include 455 residential units – 303 condominiums and 152 social housing units atop at 25,000 sq. ft. retail podium
+ RioCan REIT is selling a 50% non-managing interest in its Rhythm rental apartments in Ottawa and residential rental and retail project eCentral/ePlace project in Toronto to WoodBourne Capital Management for $156.2 million
+ Stadium Yards in Edmonton is ramping up; the first building in the project will start receiving tenants in January/2021
+ Starlight Investments closed its acquisition of Aqua at Plaza 88 in New Westminster, BC; 398-door high rise
+ Starlight U.S. Multi-Family (No. 1) Core Plus Fund agreed to acquire The Bluffs at Highlands Ranch, in Denver (340-doors) for US$108.5 million
+ Venterra Realty closed its $75.0 million acquisition of Maddox Apartments (372-doors) in Duluth, GA
+ ViveRE Communities Inc. agreed to acquire Village View No.3 Limited Partnership (47-door project in Saint John, NB) for $11.25 million
INVESTMENT/DEALS - office
+ Cenovus-Husky $3.8 billion merger will consolidate operations of both companies with staff cuts, primarily in Calgary, and likely return of more surplus office space to the market when the merger completes; 2,100 layoffs are expected starting in January
+ Ernst & Young Inc., as court-appointed receiver is soliciting proposals to acquire the assets of Willow Park LP, Wesley Church Building Inc., Wesley Church Building LP, Paramount Building Ltd., and Paramount Building LP
+ Ernst & Young have launched another sale process on a Strategic Group asset; Petro West Building in Calgary and the bidding will begin … tic toc
+ Richardson GMP leased 85,000 sq. ft. at 100 Queens Quay East, Toronto – Menkes developed project is now 65% leased
+ Suncor Energy Inc. is relocating its Oakville and Mississauga operations to Calgary in 2021; no announcement yet on how many the 700 personnel will be moving …
INVESTMENT/DEALS - REITS
+ American Tower REIT agreed to acquire InSite Wireless Group LLC (3,00 communications sites in U.S. and Canada) for $3.5 billion
+ Artis REIT’s plans for a retail REIT spin-off facing opposition from dissident unitholder Sandpiper Group; proxy battle heating up … -  continues to be under siege from Sandpiper Group – pushing for changes
+ Brookfield Asset Management agreed to sell its Simply Self Storage business (120 facilities / 23 states) to Blackstone REIT for $1.6 billion
+ Dream Hard Asset Alternatives Trust is changing its name to Dream Impact Trust
+ Innovalis REIT struck a board committee to do a strategic review process for the future of the REIT
+ Northview Canadian High Yield Residential Fund closed its $1.8 billion acquisition of a 378-property portfolio from Northview Apartment REIT
+ PREIT filed for Chapter 11 creditor protection to reorganize debt & access new financing for its malls portfolio – furloughed 37% of its staff
+ RioCan REIT is selling a 50% non-managing interest in its Rhythm rental apartments in Ottawa and residential rental and retail project eCentral/ePlace project in Toronto to WoodBourne Capital Management for $156.2 million
INVESTMENT/DEALS - retail
+ Amazon’s Prime day produced over US$10.0 billion in one-day sales, but US$3.5 billion of that was third-party supplied merchandise – in other terms, 65% was spent with Amazon, and 35% spent with its 3rd party sellers, which further underscores Shopify’s success in facilitating vendors’ businesses
+ Artis REIT volleys back against the Sandpiper Group critique of its retail spin-off plans
+ big brother wasn’t watching – but Cadillac Fairview was; Privacy Commission says privacy violations were not justified; CF says it has stopped the practice and deleted its saved data of 5.0 million images harvested in 2018
+ Carter’s announced it will close 25% of its 850 stores in U.S., Canada, and Mexico as leases expire
+ Deloitte’s 2020 Holiday Retail Outlook report; COVID-19 and Amazon pushing a shift in spending patterns
+ Dunkin’ Brands (Dunkin’ Donuts, Baskin-Robbins) agreed to acquire Inspire Brands (Buffalo Wild Wings, Arby’s, Sonic Drive-In, Jimmy John’s) for US$11.3 billion
+ Gap Inc. has a new strategy to move its focus to an off-mall strategy – Power Plan 2023 – they’ll expand Old Navy and Athleta brands while retreating from its strong mall focus – their currently closing 350 stores, 75% of which will be closed by end of 2021, with an expectation to have 80% of their store in non-mall locations by end of 2023
+ Hudson’s Bay. Co. ULC in a legal battle with Oxford Properties over rent in shopping malls which have been dark or reduced in operations, impairing HBC’s ability to operate at normal levels – litigation going on in several jurisdictions with numerous landlords. An Ontario court has given an interim ruling stopping eviction and requiring HBC to pay 50% of withheld rent, but clearly, the issue is not finalized … tic toc
+ G2S2 Capital Inc. increased its interest in Cominar REIT above 10%
+ Inovalis REIT’s board initiated a strategic review process to increase unitholder value
+ J.C. Penny signed an asset purchase agreement with Brookfield Asset Management and Simon Property Group; expects to emerge from Chapter 11 bankruptcy process before the holiday season
+ Kingstreet Food Company Group secured CCAA creditor protection
+ Kingswood Capital Management LP closed its acquisition of MEC which had been under CCAA protection; HQ will remain in Vancouver, and 21 of 22 store locations are being retained
+  Le Château Inc. filed for CCAA creditor protection while it winds down operations; 123 stores will close; PwC is monitor, Gordon Brother ULC and Merchant Retail Solutions ULC appointed to handle the liquidation
+ Pet Valu announced it will wind down its U.S. operations; 358 stores and warehouses in the U.S. and U.S. HQ will be wound up on a ‘going out of business’ basis; the U.S. Pet Valu operation uses the name under license from Pet Valu Canada based in Markham which operates 600 stores in Canada
+ PREIT filed for Chapter 11 creditor protection to reorganize debt & access new financing for its malls portfolio – furloughed 37% of its staff
+ Restaurant Brands International Inc. announced plans to renovate and ‘react to COVID-19 concerns’ to 10,000+ restaurants in North America by mid-2022
+ Starlight Investments and KingSett Capital et al closed their $4.9 billion acquisition of Northview Apartment REIT
+ Slate Asset Management bought two portfolios in Germany; retail and essential tenant uses; €72 million, 60,000 sq. ft.
+ Sleep Country partnering with Purple Innovation/Purple Mattress
+ Swimco has filed for bankruptcy, closing its 20 stores; Deloitte Restructuring Inc. is the trustee
+ T. Kettle acquired 45 leases given up by David’s Tea
+ The GAP – operators of GAP and Banana Republic stores will close 350 stores in upcoming business cycles; they are focused on generating 80% of its revenue from non-mall stores and e-commerce by 2023
+ Walmart announced it is exiting Argentina; also, they’ve agreed to sell their Japanese Seiyu supermarket stake to KKR and Rakuten for $1.65 billion
NEW PROJECTS IN THE PIPELINE
+ Chartwell Retirement Residences secured approvals to construct a new 224-bed long term care home in Ajax, ON; budgeted at $65.2 million for completion spring 2023
+ Concord Pacific has redevelopment plans for the former Molson Coors brewery site in Vancouver; 7.6-acre site is between Burrard Bridge and Granville Island; 1.8 million sq. ft. projects mixed-use plus 3,000 residential units …
+ KingSett Capital proposing 59-Storey tower on Yonge Street in Toronto; 500 condo units and height in previously low-density zoning creating buzz … permit applications are in
+ the skinny – a thin tower for Bloor & Bay in Toronto; 71 story-condo atop 13 floors of office and a two story retail bottom – Pritzker Prize-winning architects are planning to put a stick in the air to be one of Canada’s tallest buildings by ProWinko and Kroonenburg Group developer consortium
TECH / TELECOM corner ...
+ Apple launched iPhone 12
+ get the scoop on 5G – where is it at, where it going – read this
+ Zoom launched an event platform, so anyone can use Zoom for a conference, sell tickets / accept donations …
WORKING FROM HOME OFFICE
WORK / ASSIGNMENTS / LISTINGS WANTED:
+ listings – FOR SALE, FOR LEASE – Calgary, Red Deer, and Edmonton markets
+ judicial sales foreclosure/court-ordered receiverships – commercial property Calgary, Red Deer, Edmonton, and Southern Alberta
+ property management: commercial and residential property management assignments/tasks; lease enforcement, negotiation of renewals, single properties, and small portfolios
 
~ call me to discuss your requirements: Mark Kolke, 403-444-6939
~ or email me: kolke@markkolke.com

PROPERTY LINES - a monthly newsletter on happenings in the commercial real estate marketplace in Alberta and in other jurisdictions. This publication will be of interest to a wide audience of readers interested in the real estate industry and is particularly focused on issues of interest to:

- investment real estate professionals

- landlords, financial institutions and real estate lenders

- real estate lawyers, accountants, appraisers

- property managers and asset managers

- insolvency professionals, foreclosure services, service trades/contractors

- commercial, development, and income property investors

 

 

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PLANDflex Corporation -  Mark Kolke, President / Publisher
Agent/Realtor/Property Mgr. - under contract to MaxWell Capital Realty
 
→  6204B Burbank Road SE, Calgary, AB T2H 2C2
→ Phone: (403) - 253-2450 / (403) - 444-6939
→  Cell/Text: (403) - 312-8359
 
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