Muti-million-dollar commercial deal in Toronto finalized
Scheduled to close by the end of this month, a multi-million-dollar transaction is attesting to the strong demand for Toronto’s retail spaces.
Earlier this week, Choice Properties Real Estate Investment Trust announced that it has cemented an agreement to sell a 30-property portfolio to a third-party buyer.
“We are pleased to execute on this opportunity to recycle capital,” Choice Properties president and CEO Rael Diamond said
“Along with the recent issuance of equity, this transaction further strengthens our balance sheet by reducing leverage and providing additional capacity to fund our significant development program.”
Valued at approximately $426 million, the portfolio is comprised of three distribution centres and 27 stand-alone retail properties.
With e-commerce coming to the fore as one of the city’s most vibrant industries, a growing expectation for same-day delivery among consumers is driving the demand for Toronto’s retail assets.
According to the latest Emerging Trends in Real Estate study published by PwC Canada and the Urban Land Institute, spaces for pre-delivery storage are among the most important properties. Cold storage for food is a particularly valuable resource, taking into account the increasing influence of online shopping.
Co-working arrangements are also becoming more prominent, with the waning of brick-and-mortar retail. Several operators are choosing to lease space to co-working organizations, while others are redeveloping their properties into mixed-use assets that will incorporate community services and even residential units.