A major Montreal office acquisition has solidifies the asset class as among the market’s most desirable.
Earlier this week, Groupe Petra and MACH announced the acquisition of 1100 Rene-Levesque West, a Class A, LEED Platinum certified building that offers more than 560,00 sq. ft. of office space.
The building is home to several prestigious tenants, including CMHC, ADP Canada, BCF Business Lawyers, and TC Transcontinental.
“This acquisition consolidates Groupe Petra’s position as a leader in the Montreal commercial real estate market. The addition of this remarkable asset to our portfolio strengthens the strategic partnership that already links us with Vincent Chiara of MACH,” according to Groupe Petra president and CEO Patrice Bourbonnais. “We are very proud to acquire a property of such prestige and quality.”
A Morguard Corporation report released last month noted that Canada’s office segment enjoyed a record level of investment in 2019.
The nation’s burgeoning high-technology sector drove much of this demand, with several global tech giants establishing roots in major Canadian cities like Toronto and Montreal.
“Industrial and multiunit 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.
“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.”