LaSalle Canada Property Fund has acquired 21 mid-bay industrial properties in the Greater Toronto Area with an unnamed international partner.
The properties total nearly 810,000 square feet and are strategically located in the Mississauga industrial node, the premier submarket for servicing Canada’s largest city and just a short drive to Pearson International Airport.
The portfolio is 98 percent leased, with buildings ranging from 18,000-81,000 square feet. The properties are designed to accommodate a wide range of tenant uses, including standalone buildings for single tenants.
LaSale said the acquisition represents a compelling value-add opportunity for both partners with near-term upside given rents are 60 percent below market rate and the weighted average lease term is just 1.5 years.
According to the company, Toronto is North America’s third largest industrial market and is land constrained due to protective zoning in the surrounding “Greenbelt” area.
”Historically, these factors have created strong tenant demand for industrial property, driving vacancy for industrial product in the GTA to 0.9 percent, the lowest of any North American market,” the company said.
John McKinlay, CEO of LaSalle Canada, said: “We’re thrilled to execute this transaction with our international partner, which helps both parties achieve our goal of increasing our exposure to well-located assets in the industrial sector. We feel our track record of successfully executing on all types of industrial investments, whether they are core, value-add or development, positions us well to create value and generate returns even in a hyper-competitive market such as Toronto.”
Mike Cornelissen, LaSalle Senior Vice President of Acquisitions, added: “This portfolio aligns with all of our preferred attributes in terms of mid-bay product type, location, scale and upside. It’s rare to find such well-located, quality industrial properties in the Greater Toronto Area, and we’re excited about the rental upside given the portfolio’s short weighted average lease term. We appreciate the efficient transaction process with our partners, and believe the assets will meaningfully enhance our portfolios.”