Harbourwalk condos.Commercial real estate in Canada is on the rise. The transaction volume of commercial real estate in Canada hit an all-time high in the second quarter as a result of two large deals, according to the latest report from Commercial Real Estate Canada.Please Visit: Harbourwalk condos to Get Your VVIP Registration Today!
Commercial real estate transactions were worth $16.5 billion in the second quarter, 38 per cent higher than the all-time high of $11.97 billion in the first quarter of 2017 and 105 per cent higher than the quarterly average of the past five years, according to the report. This brings the total investment in commercial real estate in Canada to 26.8 billion yuan in 2018, the highest “half-yearly investment level” in history.
This record is mainly due to two successful commercial mergers and acquisitions. The two commercial mergers and acquisitions are the acquisition of CREIT, a famous Canadian real estate company by Choice Properties, a famous real estate trust fund, and the merger of PIRET, a Vancouver-based real estate company, by Blackstone, a famous asset management company in the United States.
The total value of the two mergers and acquisitions reached 45% of Canada’s total business investment in the second quarter.
In addition, several large individual asset deals led to another record high in commercial real estate investment in the second quarter. These include Hines and Oaktree Capital Management’s $107 million acquisition of the First Tower office building in Calgary and Tigra Vista Inc. Acquired Toronto-based Parkway Place for $256 million.
“because of these two staggering commercial mergers and acquisitions, it’s no wonder that commercial real estate investment in the second quarter of this year was the highest in Canadian history,” CBRE said. In fact, investment in the second quarter of this year increased by 67% over the same period last year. This figure also reflects the scale and influence of commercial real estate investment in Canada today. If investors analyze the two mergers and acquisitions in depth, they will find that the purpose of Choice Properties’s purchase of CREIT is to diversify its operating industries, while Blackstone bought a strategic platform located in Canada. ”
“in addition to the two mergers and acquisitions, we are also seeing extremely strong demand for high-quality commercial assets that provide sustained revenue,” CBRE said. Investors are now focused on finding high-quality assets that can hold their value steadily even in an economic downturn. The investment prospects of these assets are very reliable and their income is predictable for a long time. “
