Skyline acquires $309M industrial portfolio in Calgary, Edmonton | RENX

Skyline Industrial REIT has acquired a portfolio of Edmonton and Calgary industrial buildings for $309.25 million. (Courtesy of Skyline)

Skyline Industrial FIBER completed the largest transaction in its history, entering the city of Edmonton and expanding its holdings in Calgary with the acquisition of a $309.25 million portfolio comprising more than two million square feet of space.

Skyline said the provider is a “major Canadian pension plan” but did not identify the former owner.

It said in a statement Monday afternoon that the transaction closed on September 8.

The properties are located in four business parks and are 97.7 percent occupied. The portfolio comprises 16 buildings on 129.5 acres of land. Together, the properties accommodate 51 tenants.

The “largest ever” transaction for Skyline

“The transaction is not only the largest ever for the Skyline Industrial REIT, but also the largest closing in all of Skyline Group of Companies’ investment products,” he said. Jason Castilianco-founder and CEO of the parent REIT, based in Guelph Skyline Group of Companiesin the ad.

“This milestone demonstrates the dedication and hard work of all our people in the group of companies and our confidence in the Canadian markets where we invest.”

The four business parks are located in what Skyline calls “coveted Calgary and Edmonton submarkets” and offer excellent access to transportation networks.

“This transaction was momentous for Skyline Industrial REIT and we are delighted to enter the City of Edmonton, expand our holdings in Calgary and enhance our presence across Canada,” he said. mike bonneveldpresident of Skyline Industrial REIT, in the announcement.

“Each of the properties provides exceptional logistics, distribution and warehousing facilities to its tenants, which translates into excellent service for the tenants’ customers.

“This acquisition aligns with the REIT’s strategy and target asset format in terms of geography, headroom, tenant profile and flexibility.”

Redistribute capital from disposals

The REIT recently completed a strategic disposition program and has significantly increased its weight in new assets and modern industrial developments.

Proceeds from those asset sales are being redistributed into new acquisitions and toward development associations in the REIT pipeline.

“The redeployment of capital generated from the disposition strategy over the past 15 months has provided us with the opportunity to acquire these assets and enhance our portfolio to the fullest,” Bonneveld said in the statement.

“We believe this transaction is a strategic move for the REIT and for the Skyline Group of Companies. We thank CBRE Toronto, Calgary and Edmonton for their assistance with this transaction.”

The REIT believes there is a significant upside to the portfolio as both Calgary and Edmonton continue to experience significant net rental growth, similar to other major markets in Canada.

According to CBRE’s Q2 2022 Canada Industry Report, Calgary leasing activity has persisted in Q2 2022 with two million square feet of positive net absorption and the market has seen a rapid acceleration in rentals, with rents increasing 15.3% year over year to $9.49 per square foot. foot.

Skyline Industrial REIT Name Change

The Skyline Industrial REIT portfolio now consists of 57 properties in 33 communities in five Canadian provinces, totaling 8,753,999 square feet of space.

Skyline Industrial REIT is also currently open for investment, its first opening in nearly a year.

“We are determined to continue our forward-thinking momentum and continue to position the REIT as an industry leader with more future transactions like this one,” Bonneveld said.

Skyline Industrial REIT was previously known as Skyline Commercial REIT, but changed its name in June to better reflect its new focus.

Skyline Industrial REIT is a privately owned and managed industrial property portfolio focused on the acquisition of warehousing, distribution and logistics properties along major highway corridors and transportation routes in Canada.

Skyline Industrial REIT is distributed as an alternative investment product through Skyline Wealth Management Inc., the preferred exempt market dealer for REITs.

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