A major acquisition of an industrial property in Halifax rounds up a robust year for Atlantic Canadian commercial real estate.
PRO Real Estate Investment Trust’s $8.45-million purchase of an industrial property in 171 John Savage Avenue at Burnside Industrial Park was financed by the proceeds from a new $5.75 million 10-year first mortgage at a rate of 3.43%.
The balance was satisfied via a draw on available operating facilities, the REIT added. The asset added approximately 50,000 sq. ft. of gross leasable area to the REIT's portfolio.
“As we continue to strategically diversify our portfolio, this acquisition provides PROREIT with a stronger presence in the strengthening Halifax industrial market that has received increased interest from institutional investors recently,” president Jim Beckerleg said.
On the whole, the Canadian commercial property market can expect sustained strength and generous gains next year, Morguard Corporation said in its latest report.
“Industrial and multi-unit rental apartments are probably the two most attractive asset classes. Office is just as strong,” Morguard director of research Keith Reading told Mortgage Broker News earlier this month.
“The big thing for investors is that they look at commercial real estate as a defensive asset. It’s a solid long-term investment as opposed to equities markets, where you get more fluctuation and more volatility. So I think that in the economic environment that we’re in, real estate definitely seen as an asset that will perform over the long term.”
Industrial sales activity is projected to remain at the brisk pace seen over the last few years.
“Commercial real estate remained one of the most attractive and stable long-term investments in 2019 and will continue to attract interest from investors in 2020,” Reading added.