Montreal-based firm makes big splash in Winnipeg market

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This article was published 06/06/2018 (2673 days ago), so information in it may no longer be current.

Montreal-based PRO Real Estate Investment Trust (PRO REIT), has made its first move into the Winnipeg real estate market, acquiring a portfolio of six industrial buildings and 2.1-acre parcel of land in the Inkster Industrial Park and the St. James industrial area.

PRO paid an aggregate purchase price $27.3 million for the portfolio. Neither party would confirm, but industry players agree the vendor was QuadReal Property Group, the real estate arm of the B.C. pension fund BCICM.

The buildings acquired include 1455 Mountain Avenue, the home of one of two large Winnipeg manufacturing sites leased by Canada Goose. The total leaseable space in the six buildings is 237,430 square feet.

PRO REIT chief-executive officer James Beckerleg said it has always been the company’s desire to acquire properties across the country.

He said he’s glad to have had the opportunity to get into this market. The company believes there are great opportunities to invest in commercial and industrial properties outside of the large urban markets like Toronto and Vancouver.

“We have been investing outside those major urban area since we started in 2013,” Beckerleg said. “We think Winnipeg is a great place for REITs with our strategic objectives — it is growing, the Winnipeg market is traditionally stable, and of late, prices have been going up, vacancies are dropping and rental rates are starting to increase, so that bodes well for the future.”

At the Winnipeg real estate forum held last week, there was plenty of talk about the dearth of quality industrial properties available and the need for additional development.

Robert Scaletta, an industrial agent with Shindico Realty, said he recently sold land in an industrial park in the northwest part of the city for $340,000 per acre, more than double the price similar land would have sold for five years ago.

“Land is trading at higher values, and that’s driving everything up, including rental rates,” Scaletta said.

In addition to 1455 Mountain, the other properties PRO REIT acquired include 1410 Mountain Ave., 20 Bentall St., 1305 and 1313 King Edward St. and 1791 Dublin Ave.

In addition to the Winnipeg properties, PRO REIT also announced the acquisition of five standalone retail buildings in Quebec and New Brunswick, and the 50 per cent remaining interest in an industrial building in Drummondville, Que., for a total of $17.8 million.

Prior to these acquisitions, which are still subject to closing conditions, PRO REIT owned 66 properties totalling approximately 2.7 million square feet of commercial gross leaseable area in eight provinces.

Now that it is in Manitoba, the company owns properties in every province but Newfoundland and Labrador.

martin.cash@freepress.mb.ca