Commercial Real Estate News Blog

Near-capacity occupancy rates, double-digit rental yields and sound economic growth, including its tourist industry, are strong reasons for investing in Cape Verde. With projections of a 9% annual capital appreciation for investors, the 5-star Dunas Beach Resort is the most opulent of planned developments...

Demand is outstripping supply in the UK residential rental market, aggravated by the shortage of homes for sale on the market. The recent capital gains tax hike is one factor discouraging landlord investment, impeding housing recovery and leading to record low rental inventory. See the following article...

John Vivadelli, CEO and founder of AgilQuest Corporation, talks about commercial real estate potentially facing a perfect storm - one that will utterly change the capital markets and the way corporations account for their office space on their balance sheets.

Deals Are On the Rise, as Capital Returns to the Market

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“No-frills” mortgages have become a tempting option for home buyers with limited pre-payment ability. The newest entrant in this segment is Street Capital’s “Street Sense Closed Adjustable Rate Mortgage” (ARM)....

Greek Debt ‘Contagion’ Could Disrupt Capital Markets, Says Nadji

Residential sales slipped 2.6 percent from March.

Canadian home resales slowed in April from the previous month while new listings climbed, suggesting the country's real estate market could soon start to cool after a year of surging prices. Even so, sales of existing homes still showed a big jump from the same month last year, according data on Monday from the Canadian Real Estate Association, with prices rising at a double-digit pace year over year.

Residential housing has become an important driver of the Canadian economy, even during the recession, spurred partly by low interest rates. It also gave rise to a fiery debate on whether the housing sector was forming a bubble, a charge that policymakers swiftly downplay.

All told, 42,078 homes changed hands in April, up 20.1 percent from the same month last year. But sales slipped 2.6 percent from March, the third decline in four months, and have fallen 6.8 percent from the peak reached in December.

The cooler pace of activity is in line with a long-held view by many economists, who see the market slowing after the spring as more homes are put up for sale and interest rates begin to rise.

Some homeowners may also move sooner in order to avoid extra costs associated with new, harmonized sales tax (HST) regimes, set to begin July 1 in Ontario and British Columbia, and this could add to a front-loaded year of sales and pricing activity.

"Prices may see one last uptick in the next few months, but are expected to simmer down notably in the second half," said Doug Porter, deputy chief economist at BMO Capital Markets.

"Indeed, outright price declines are certainly a very real possibility in Ontario and B.C. amid much more moderate activity after the HST kicks in."

CREA said a slowing market in British Columbia was responsible for more than half the decline for the year. Ontario and Quebec, two of the country's larger markets, remained close to record levels in April.

The number of new listings rose to 99,901, surpassing the previous April record, set in 2008, by 0.6 percent. The average national price rose 12.2 percent to C$344,968 ($331,700). The rising supply of homes for sale could dampen prices in the months ahead. Sales may also cool as higher mortgage rates and rising prices chip away at demand, and overall housing investment falls into line with the broader economic recovery.

"The pace of moderation is expected to be measured and orderly," said Millan Mulraine, a senior strategist at TD Securities.

Source: Canadian Real Estate Association

TORONTO, April 13 /CNW/ – Whiterock Real Estate Investment Trust (TSX:WRK.UN) announced today that it has acquired three high quality, flex office assets with significant below market leases in Regina, Saskatchewan. In keeping with its active acquisition program, Whiterock and a co-owner acquired the three business centers for $17.7 million before closing costs. The in-place AFFO from the properties will add approximately $0.03 per unit, or 2%, to Whiterock’s annualized AFFO.

Whiterock’s partner on these acquisitions is Return on Innovation Capital Inc. (“ROI Capital”), an investment firm based in Toronto that specializes in private placement investments, including a focus on high quality properties with visible growing cash flow streams backed by solid covenants and longer term leases. With over $700 million in assets, ROI Capital is one of the fastest growing investment firms in Canada.

The portfolio includes three multi-tenant flex office buildings located in Regina, Saskatchewan. The assets are based in the prominent Ross Industrial Park, which is the primary industrial park in Regina, and includes the McDonald Business Centre, the Henderson Business Centre and the Imperial Business Centre. Access to the properties is provided by the close proximity to the Trans-Canada Highway and major arterial roads, Ring Road and Highway 1. The portfolio has been maintained to institutional standards with over $900,000 in capital upgrades in the past four years.

Collectively, the centres are 96% occupied and comprise approximately 183,000 square feet of rentable space on over 12 acres of land with an excellent mix of office, industrial and retail space. Each property contains ample surface parking.

Whiterock’s 40% equity investment in the properties, net of debt, totals approximately $3.1 million, with an in-place AFFO return of approximately 13%. Whiterock used cash on hand to finance its investment in these properties.

Whiterock’s owned and managed portfolio totals 5.6 million square feet across 56 properties, with a weighted average lease term of approximately 7 years. 52% of the portfolio consists of government and investment grade tenants. 100% of distributions made in prior years were classed as a return of capital for tax purposes. At the close of market on April 12th, 2010, Whiterock’s units provided a yield of 11.1%.

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