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PROPERTYlines

 
April 2021 Issue

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
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+ February 2021
+ January 2021
December 2020
+ November 2020
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+ September 2020
+ August 2020
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BUSINESS TRAVEL
+ Air Canada and Air Transat A.T. Inc. agreed to terminate their proposed merger; regulatory approval hurdles and COVID-19 were cited as the primary causes – though Ottawa’s lack of clarity on how it will support the airline industry recovery is the proverbial quicksand everyone fears; don’t be surprised if Pierre Karl Péladeau goes after Transat … tic toc
CLIMATE CHANGE, LEED & RENEWABLE ENERGY
+ Advantage Oil & Gas Ltd. and Allardyce Bower Consulting Ltd. announce a JV carbon capture and storage technology project at Glacier Gas Plant near Grande Prairie; expected in service by March 2022
+ Blindman Brewing in pilot project to reduce greenhouse gas emissions
+ Canada’s Top 100 Greenest Employers for 2021
+ canola diesel project could kick start Estevan (my hometown!)
+ Clean Resource Innovation Network - $80.0 million for large scale technology competitions for environmental improvements in oil and gas industry
+ CPP Investments  (CPPIB) created a new entity, Sustainable Energy Group with a focus on renewables
+ Enbridge Inc. is partnering with Walker Industries and Comcor Environmental to develop renewable natural gas from landfill waste
+ Expander Energy Inc. and Vanderwell Contractors got approval for their Slave Lake Biomass/Gas-t0-Liquids proposed project
+ E3 Metals got a $1.8 million Alberta Innovates grant to develop a pilot plant for lithium extraction
+ Government of Alberta is halting coal exploration on Category 2 lands
+ Government of Canada’s 2021 budget included $1.5 billion to boost green building …
+ hearings are underway regarding the Springbank Dam flooding situation; the dry dam will address issues in the last big Calgary flood in 2013; NRCB hearings are underway, and Springbank residents continue to raise their concerns about doing it right – great graphics and map put this project in perspective
+ Imperial Oil makes its case that net-zero by 2050 is too aggressive a pace …
+ is hydrogen hype overblown?
+ prairie provinces expected to lead Canada in renewable energy growth
+ Questerre Energy Corporation and ZEG Power AS teaming up to develop a blue hydrogen project in Quebec
+ Suncor Energy part of a major financing to support the carbon-capture work of Svante Inc.
CONSTRUCTION NEWS + BUILDING OPERATIONS / INNOVATIONS
+ Alberta and Canada made announcements of $187.0 million in 2021 highway construction projects for Highway 15 and Highway 19
+ Alberta expanding apprenticeship program
+ Anthem United and Ronmor Group formed a 50/50 JV to develop 836-acre Glacier Ridge community in the NW; the master-planned community will build out as 4,125 single-family homes, 87 acres of multi-family and commercial land and over 200 acres of reserves
+ architectural mesh for parking garage exteriors
+ Canada Infrastructure Bank to invest $665.0 million toward the $1.7 billion in Lake Erie Connector project; 117 km. underwater transmission line
+ Canadian Budget reaction from On-Site Construction magazine
+ Cargill Inc. announced its plans for a $350.0 million new canola processing facility in Regina
+ check out this geoxchange energy system
+ City of Calgary construction of the Green Line LRT project has been officially delayed; start will be in 2022 or later …
+ City of Calgary’s new Planning Guidebook in the news; City Council facing resistance from communities and some members of council … evolution of this process has been ongoing for years, so it’s ‘good business’, but the nub of the issue is whether non-elected bureaucrats will be making decisions usually reserved for elected council members; and community leaders seem divided about whether they want a transition in how they influence redevelopment and planning processes … tic toc
+ concrete merger: Votorantim Cimentos and Caisse de dépôt et placement du Québec to combine cement operations in North America; St. Marys Cement Inc. (Canada), to commence integration process with McInnis Cement Inc.
+ construction industry forecast for labour through to 2030
+ designed for Mars …
+ Government of Canada’s 2021 budget included $1.5 billion to boost green building …
+ Graham won $475.0 million Ryerson campus project in Toronto
+ ground-breaking on Agri-food Hub and Trade Centre in Lethbridge
+ ground-breaking news – Calgary’s BMO Centre’s $500.0 million doubling project put the shovel in the ground
+ Kicking Horse construction challenges
+ KUDOS ~ to EllisDon Corporation, celebrating their 70th-year milestone
+ lumber price spike not expected to ease anytime soon
+ new construction job portal
+ Ontario COVID emergency brake shutdown – leaves construction open
+ Patullo Bridge delayed to 2024; first piles install in Fraser River
+ Pomerleau partnering with Factry to develop Pomerleau aXLabs – integrating innovative technology in the construction industry
+ renderings magic – check this out
+ site C dam, delayed, late, but going forward
+ Stantec and HDR selected to design new Vancouver hospital
+ Stantec and KPMB Architects are on a great gig – a 10 yr. project to transform SickKids in Toronto
+ Toronto – where the cranes are
+ Viterra Inc. announced plans for world’s largest canola-crushing plant in Regina; budget cost not disclosed
+ White Cap Supply Canada Inc. (Brafasco, Brock White Canada) to combine with National Concrete Accessories Canada Inc.

 
CORPORATE RESPONSIBILITY + ESG REPORTS
+ a great paper from Torys LLP makes the case for Canadian fossil fuels ESG supremacy
+ Aecon Group Inc. released its 2nd annual Sustainability Report
+ Ballard Power Systems Inc. published its 2020 ESG Report
+ Caisse de dépôt et placement du Québec released its 2020 Stewardship Investing Report
+ Canada Goose released its 2020 Sustainability Report
+ Colliers International Group Inc. released its inaugural Global Impact Report
+ iA Financial Group published its 2020 Sustainability Report
+ Killam Apartment REIT published its 2020 ESG Report
+ National Bank of Canada released its 2020 ESG Report
+ RBC published its 2020 ESG Performance Report
+ Scotiabank published its 2020 ESG Report
+ Spin Master Corp. published its Annual Corporate Social Responsibility Report
+ Starlight Investments published its 2020 ESG Report
+ Sun Life Financial Inc. published its 2020 Sustainability Report and Public Accountability Statement
+ Thomson Reuters published its 2020 Social Impact Report
+ Tm Hortons launched their Tims For Good sustainability platform
DATA CENTER TRENDS
+ eStruxture Data Centres Inc. to acquire Canadian unit (8 data centers) of Aptum Technologies; terms not disclosed
DESIGN, ARCHITECTURE & PLANNING
+ IKEA’s innovation lab + SPACE10 have some cool things happening – and say they are inventing the ideal city …
DEVELOPMENT & REDEVELOPMENT NEWS & TRENDS
+ Anthem United and Ronmor Group formed a 50/50 JV to develop an 836-acre Glacier Ridge community in the NW; the master-planned community will build out as 4,125 single-family homes, 87 acres of multi-family and commercial land and over 200 acres of reserves
+ Fengate Asset Management formed a JV with LiUNA Pension fund, Craft Development Group, and Kingsmen Group Inc. to develop the ORCA project – mixed-use 16 acre project on former rail corridor lands in downtown Toronto
+ Hines and PC Urban JV will build western Canada’s largest and tallest mass timber office building
+ Propeller Developments is transforming 107 yr. old bank building into an office tower using the bank building as retail podium/entry point
+ Reliance Properties in JV with Hines to develop 32-storey AAA office tower in Vancouver on the site of Canada Revenue Agency tower
+ RioCan REIT announced 50/50 JV with Context for Masterplan Community at Queen & Coxwell in Toronto
ELECTRIC VEHICLES + EV CHARGING
+ GM plans for another battery factory in the U.S.
+ Government of Canada providing $2.7 billion in funding to support electric public buses
+ in Vancouver – chargers at six sites, government funding and Bosa Properties getting it done
+ Purolator rolling our fully electric delivery vehicles on Toronto and Vancouver
ENTITLEMENTS ~ REGULATORY
+ Edmonton is repealing 77 obsolete community development plans
+ New Westminster ‘downzoning’ means 230 condos are will be rental only, banning owner-occupiers; meaning you can own it, you can rent it out – but you can’t live in it! By-law upheld in court … tic toc
FINANCING NEWS & INNOVATION
GOVERNMENT ACTIONS / programs - ALBERTA
+ GOA Bill 22: The Red Tape Reduction Implementation Act, among other things, removes director residency requirements – check out the paper by Burnet Duckworth & Palmer
GOVERNMENT ACTIONS / programs - CANADA
+ Air Canada bailout/help from government is large, involved the government/taxpayers taking an equity stake in the airline, in two portions –; LEEFF (Large Employer Emergency Financing Facility program is providing up to $5.879 billion in liquidity; CEEFC (Canada Development Investment Corporation) is providing $4.0 billion in loans; customers awaiting refunds for cancelled flights will get refunds – but the Trudeau government remains silent on help for other airlines – silent on a comprehensive industry-wide message of support … tic toc
INFRASTRUCTURE + P3
+ Alberta and Canada made announcements of $187.0 million in 2021 highway construction projects for Highway 15 and Highway 19
+ Amazon announced it will construct an 80MW solar project in Newell County, east of Calgary
+ Brookfield Renewable Partners LP is selling some portfolio wind assets (Ireland and U.S.) in two transactions for US$1.4 billion
+ Calgary’s downtown Plus15 (+15) pedestrian system is getting a review, re-study, and possible re-vamping; wayfinding (mostly signage) improvement recommendations will fall out of the study being conducted; the policy update will to a City Council Committee – Transportation and Transit – by June. The structures, building them, connecting and paying for Plus 15 bridges is a ‘developer/owner’ function – but operations and permitting processes for tenants fronting onto the Plus15 rests with the City …
+ Canada Infrastructure Bank to invest $665.0 million toward the $1.7 billion in Lake Erie Connector project; 117 km. underwater transmission line
+ Capstone Infrastructure Corporation has commissioned and is now operating 132MW Claresholm Solar Project; power and emission offsets from this, Canada’s largest solar facility, are sold to TC Energy
+ CPP Investments is putting $270.0 million in AIMCo/IG4 Capital Group portfolio of water and sanitation projects in Brazil
+ City of Calgary construction of the Green Line LRT project has been officially delayed; start will be in 2022 or later …
+ GOA issued an RFP for a new project to replace the Calgary Court of Appeal building; $57.3 million project will return the Court of Appeal to its historic site when the current lease space in the TransCanada Tower matures in 2024 – which will create construction jobs and return more office space to the market …
+ Green Line images of the proposed downtown tunnel and green space in Eau Claire
+ groundbreaking news – Calgary’s BMO Centre’s $500.0 million doubling project put the shovel in the ground
+ hearings are underway regarding the Springbank Dam flooding situation; the dry dam will address issues in the last big Calgary flood in 2013; NRCB hearings are underway, and Springbank residents continue to raise their concerns about doing it right – great graphics and map put this project in perspective
+ hiccups in Calgary; CMLC and owners of the Calgary Flames seem to be at an impasse – budget issues on the $550.0 million project are being discussed in closed-door sessions with City Council … tic toc
+  Iguá Saneamento S.A. won the auction for the concession of Block 2 in the privatization of water and sewage services from CEDAE, Rio de Janeiro's water and sewage company, for C$1.7 billion; will be funded with additional capital invested into Iguá from among its current shareholders (CPP Investments, AMICo and IG4 Capital
+ Jervis Inlet is proposed for a $10.0 billion deep-water port project to ease pressure on west coast shipping volumes
+ National Capital Commission shortlisted bidders for the LeBreton Flats lands ‘Library Parcel’ in Ottawa
+ Northland Power Inc. acquired 540MW capacity in Spain
+ PortsToronto issued a Request for Interest (RFI) to find investors for the Billy Bishop Airport
+ Saulteau First Nations and Natural forces commissioned a new $45.0 million/15MW wind project near Chetwynd, BC;
INVESTMENT/DEALS - hospitality / entertainment / recreational
+ Pursuit Hotel project in Jasper, AB getting underway; Lawson Projects/Dialog – new 88-key project on Connaught Drive adjacent to Sawridge Inn
INVESTMENT/DEALS - land
+ Anthem United and Ronmor Group formed a 50/50 JV to develop an 836-acre Glacier Ridge community in the NW; the master-planned community will build out as 4,125 single-family homes, 87 acres of multi-family and commercial land and over 200 acres of reserves
INVESTMENT/DEALS - industrial, storage, logistics
+ Bluebird Self Storage acquired five locations in Alberta from StoreSmart Self Storage; 3,000 units/363,000 sq. ft.
+ Canadian Pacific working its way through the regulatory process on Kansas City Southern merger
+ Exro Technologies Inc. announced plans to set up a 37,000 sq. ft. automotive electric motor manufacturing facility in Calgary
+ in Red Deer, Imperial Equities Inc. acquired the Wajax Building (34,811 sq. ft. on 4.72 acres) for $9.3 million
+ in Riyadh … the King Salman Energy Park project; US$570.0 million investment by Oilfields Supply Center Limited
+ Mantella Corporation sold its Iron Street logistics centre (523,000 sq. ft.) in Toronto to Triovest Realty Advisors Inc. for $125.0 million
+ PRO REIT closed its $49.2 million acquisition of three light industrial buildings (283.495 sq. ft.) in Ottawa
+ Purolator readying new $330.0 million/440,000 sq. ft. packaged super-hub in Etobicoke, ON
+ StorageVault Canada Inc. acquired two locations (Ontario and Alberta) for $29.45 million
+ Walmart announced its first distribution centre build in Atlantic Canada; $56.0 million/221,000 sq. foot project will supply all 43 Walmart locations in the Maritimes
+ WPT Industrial REIT contributed a $370.0 million portfolio to new JV with Investment Management Corporation of Ontario
INVESTMENT/DEALS - long term care & medical
+ CareRx Corporation agreed to acquire the long-term care pharmacy unit of Rexall Pharmacy Group for $55.0 million
+ Medical Facilities Corporation planning expansion of its Arkansas Surgical Hospital
+ Optima Living Communities Inc. and Axium Infrastructure acquired 305-beds of long term care facilities from Points West Living
+ Skylight Health Group Inc. completed the acquisition of seven locations/Rocky Mountain Health Care clinics in Colorado; terms not disclosed
INVESTMENT/DEALS - multi-res
INVESTMENT/DEALS - office
+ Amazon is taking a view contrarian to the market, predicting they will bring 90% of their office staff back to the office aprez-pandemic … tic toc
+ bankers at HSBC have lost their offices; top managers at Canary Wharf HQ will now hot-desk in an open-plan environment
+ Brookfield Property Partners acquired a two-building campus in Silicon Valley/Mountain View, CA; 446,760 sq. ft. of office in missed use project – 576,921 sq. ft. for US$630.0 million – the entire property is under lease to WeWork and occupied by Facebook
+ Calgary City Council approved $200.0 million in funding to support downtown redevelopment to stem the impact of high office vacancy; long term plan will provide up to $1.0 billion in incentives
+ PCI Developments and Low Tide Properties acquired 120,000 sq. ft. former MEC headquarters building in False Creek Flats/Vancouver for $103.0 million
+ WeWork lost US$3.2 billion in 2020; seeking a deal with an SPAC in its search for capital
+ WeWork went public through a merger/SPAC deal with BowXAcquistion Corp. for US$9.0 billion
+ WeWork rise/fall follies now in a Hulu documentary; see the trailer
INVESTMENT/DEALS - pension funds, insurance co.
+ Alberta Investment Management Corp. (AIMCo) and Canmoor secured $273.7 million financing for the acquisition of 16 U.K. industrial and logistics assets
+ BentallGreenOak closed its deal to acquire Metropolitan Real Estate Equity Management (US$2.4 billion AUM) from The Carlyle Group; the unit will operate as BGO Strategic Capital Partners
+ Canada Pension Plan Investment Board (CPP Investments) agreed to sell its 45% interest in GlobalLogic Worldwide Holdings, Inc., parent of GlobalLogic Inc. to Hitachi, Ltd. for an enterprise value of US$9.5 billion
+ Canada Pension Plan Investment Board and ESR Cayman Limited expanded their Korea Income Joint Venture. CPP Investments and ESR will collectively upsize their investment by a further US$500 million, with CPP Investments contributing the majority of the capital. The new capital will effectively double the size of the venture to US$1 billion in equity
+ CPP Investments is putting $270.0 million in AIMCo/IG4 Capital Group portfolio of water and sanitation projects in Brazil
+  Iguá Saneamento S.A. won the auction for the concession of Block 2 in the privatization of water and sewage services from CEDAE, Rio de Janeiro's water and sewage company, for C$1.7 billion; will be funded with additional capital invested into Iguá from among its current shareholders (CPP Investments, AMICo and IG4 Capital
+ QuadReal partnered with Warburg Pincus-backed logistics firm New Ease to o invest in and develop logistics properties in Chinese cities; equity commitment of up to $1 billion
INVESTMENT/DEALS - REITS
+ BSR REIT acquiring 1,009-doors in Texas; $195.0 million
+ BSR REIT closed the $49.5 million sale of Mountain Ranch Apartments in Fayetteville, Arkansas
+ Choice Properties REIT unveiled plans for Phase 1 of its Golden Mile Shopping centre redevelopment in Scarborough, ON
+ Firm Capital Property Trust acquired a 50% interest in Mountview Mobile Home Park for $16.9 million; 181 unit community on 24 acres
+ Fronsac REIT announced five new acquisitions (Ontario and Quebec)
+ Granite REIT acquired a 1.0 million sq. ft. industrial facility in Georgia for$68.5 million
+ Marwest Apartment REIT completed its qualifying transaction; acquisition of 251-doors in Winnipeg
+ Nexus REIT acquired two properties (London, ON and Edmonton, AB) for $56.1 million
+ Nexus REIT acquiring 5 industrial properties (2 in Alberta), for $88.8 million in four separate transactions
+ PRO REIT closed its $49.2 million acquisition of three light industrial buildings (283.495 sq. ft.) in Ottawa
+ RioCan REIT announced 50/50 JV with Context for Masterplan Community at Queen & Coxwell in Toronto
+ Summit Industrial Income REIT agreed to sell three/283.495 sq. ft. Ottawa properties for $49.2 million
+ WPT Industrial REIT contributed $370.0 million portfolio to new JV with Investment Management Corporation of Ontario
INVESTMENT/DEALS - retail
+ Aegis Brands Inc. completed its sale of Second Cup Coffee Co. to Foodtastic Inc.
+ Adidas opened a whopping 16,000 sq. ft. hi-tech flagship store in The Dubai Mall
+ Amazon converting failed malls to warehouses and distribution centers
+ A&W Food Services of Canada Inc. announced a financial reorganization
+ Brookfield Asset Management is taking full control of Brookfield Property Partners in a US$6.5 billion transaction
+ Brookfield Asset Management acquired seven retail properties in the UK from Hammerson for $459.0 million
+ Carrefour acquiring Grupo Big , third-largest food retailer in Brazil for US$1.3 billion; 387 BIG stores and 489 Carrefour stores will make the combined entity the largest food retailer in Brazil
+ Chipolte Mexican Grill expanding in Canada; expansion in BC and Ontario this year
+ Choice Properties REIT unveiled plans for Phase 1 of its Golden Mile Shopping centre redevelopment in Scarborough, ON
+ Couche-Tard agreed to sell 49 stores to Casey’s General Stores for $39.0 million; putting 306 more North American stores up for sale
+ Disney is closing all its standalone stores, including all its 18 locations in Canada
+ FAO Schwarz to open a flagship store in Italy
+ Gap’s Athleta unit has aggressive plans to open stores in Canada; 20-30 stores/year, starting with Yorkdale (Toronto) and Park Royal (Vancouver) this fall
+ George Weston Limited to sell Weston Foods (baked goods brands); will focus on retail and real estate
+ GYMVMT filing for bankruptcy; will close some gyms in Edmonton and Calgary
+ IKEA goes young; actually, IKEA is going to Yonge Street - going downtown for the first time; new store in heart of Toronto – in Ingka Centres commercial podium space they acquired from Kingsett Capital’s CREIF Fund. Interesting that a lot of the space is subterranean, but who looks out the window when shopping at IKEA anyway?
+ Kimco Realty Corp. and Weingarten Realty Investors in US$3.87 billion merger; the combined portfolio is 559 properties
+ L.L. Bean is adding 4 more Canadian stores; coming to Deerfoot Meadows in Calgary this September
+ Lululemon is entering the resale market (as are many high-end retail brands) as outlined in its Impact Agenda …. but, seriously, used stretchy yoga pants? … eeww…
+ McDonald’s is closing hundreds of locations within Walmart stores; will shake out at 150 such locations, down from a peak of 1,000
+ Northern Reflections Ltd. completed a reorganization with JAMCO Capital Inc.
+ Saladworks to open 90 sites across Canada and the U.S., mostly in Walmart stores
+ Slate Asset Management agreed to acquire commercial real estate operations of Annaly Capital Management Inc. for US$2.33 billion – grocery-anchored portion of the portfolio to be acquired by Slate Grocery REIT
+ Starbucks exploring how to build better stores in JV with Arizona State University
+ Sunterra Market opened a 20,000 sq. ft. store in Red Deer
+ Victoria’s Secret – reported on the market again after the last deal failed … tic toc
+ Wing-Stop announced plans to open 100 stores in Canada
PROPERTY & FACILITY MANAGEMENT ISSUES
+ environmental monitoring as a service
+ Tribe Property Technologies Inc. closed its acquisition of KEY Property Management’s Rental Portfolio (75 properties); terms not disclosed
TECH / TELECOM corner ...
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Mark Kolke
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~ call me to discuss your requirements: Mark Kolke, 403-444-6939
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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

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