Grosvenor Americas sells South Point Exchange shopping centre in
Surrey, BC to Canadian private investor for $91 million
VANCOUVER, Aug. 31 /CNW/ - Avison Young, Canada's largest
independently-owned commercial real estate services company, announced
today that it has negotiated British Columbia's largest open-air mall
retail investment transaction in Western Canada thus far in 2010.
Grosvenor Americas and its institutional investors have sold South
Point Exchange shopping centre (3033-3191 152nd Street) in
Surrey, BC to a Canadian private investor for $91 million.
The transaction closed August 30, 2010. Avison Young Principals Bob
Levine and Michael Gill, together with Randy Thomson of
Sutton West Coast, acted on behalf of the buyer. Terms of the
acquisition were not disclosed.
"While there have been larger sales of enclosed malls, this sale is the
largest open-air mall retail investment transaction in Western Canada
thus far in 2010," comments Levine. "The deal is significant because it
marks the largest retail investment transaction with a private purchaser
in more than a decade."
Levine continues: "The size of this transaction represents the upper
reaches of what most private investors can afford. Moreover, other large
enclosed-mall sales in BC this year exceeding $50 million in value have
been bought either by institutions or by public companies."
The 267,000-square-foot grocery-anchored shopping centre in South Surrey
encompasses a series of single- and multi-tenant buildings on a
22.46-acre lot, with one-half kilometre of frontage on Highway 99 (the
primary north-south artery that runs between the city of Vancouver and
the Canada-U.S. border).
Constructed in phases between 2000 and 2003, and expanded in 2007, South
Point Exchange is anchored by Save On Foods, Canadian Tire and
Staples. The fully-leased mall is also occupied by Winners/HomeSense,
Cactus Club, HSBC and 26 other tenants.
According to Levine, the new owner plans to continue operating the
property as a shopping centre in the foreseeable future.
"South Point Exchange has performed very well since we
completed the final phase of the development in 2007. Given the
long-term stability of the property's cash flow, we felt that the timing
was right to sell. We plan to reinvest the proceeds into growing our
development and value-added investment activities," says Andrew
Galbraith, Chief Investment Officer of Grosvenor Americas.
"South Point Exchange is considered one of Metro Vancouver's finest
open-air malls with an optimal mix of national and regional tenants
serving a highly affluent demographic area," notes Gill. "This sale
further underscores the demand for grocery-anchored shopping centres and
the popularity of Surrey." (Surrey is BC's second largest city and one
of the fastest growing centres in Canada.)
According to Avison Young, retail property acquisitions and dispositions
propelled the BC commercial real estate investment market to record sale
transaction dollar volume in the first half of 2010.
Office, industrial and retail investment sales in BC totalled $1.026
billion in the first half of 2010, up 43% from $715 million in the
second half of 2009 and up 60% from $643 million in the first half of
2009. This was the first time in the province's history that commercial
real estate investment volume surpassed $1 billion in a six-month
period. As a result, the year-end 2010 total is anticipated to surpass
the year-end 2009 mark of $1.36 billion by a wide margin. (Avison Young
tracks investment sales in BC greater than $5 million.)
Private investors accounted for 73% (33 of 45) of the first-half 2010
transactions and 53% ($540 million) of the total volume.
The retail sector also led sales activity, accounting for 69% ($711
million) of the total dollar volume in the first half of 2010,
continuing a renaissance that began in mid-2009.
"Commercial real estate activity in BC continues to rebound positively.
The recent deal activity is attributed to strong underlying
fundamentals, wide availability of capital, fewer credit restrictions,
minimal debt loads, and investors rebalancing their portfolios as part
of the normal business cycle," says Gill.
Levine says he anticipates continued healthy interest in BC retail
properties through 2010 and into 2011.
"We expect deal activity will remain robust through 2010 with more
retail assets offered for sale as sellers capitalize on peak pricing,"
he says. "Buyers and sellers are showing more respect for each other's
pricing levels, and large amounts of cash and equity are in play
compared to six to 12 months ago. With a lack of favourable investment
opportunities elsewhere and buyers now more confident in the market, we
expect to see further large retail property transactions take place in
the second half of 2010 and into 2011."
Gill adds: "BC capitalization rates in general, which will likely remain
the lowest in Canada and among the lowest globally, are not expected to
Grosvenor is a privately-owned property group with offices in
17 of the world's most dynamic cities. It has five regional investment
and development businesses in Britain and Ireland, the Americas,
Continental Europe, Australia and Asia Pacific. Its international fund
management business operates across these markets. As at December 31,
2009, these six businesses had total assets under management of CD$17.2
billion. Unusual for a private company, Grosvenor publishes a full
Annual Report & Accounts, available at www.grosvenor.com
Founded in 1978, Avison Young is Canada's largest
independently-owned commercial real estate services company and the only
national, Canadian-owned, principal-managed real estate brokerage firm
in the country. Headquartered in Toronto, Ontario and ranked among
Canada's leading national commercial real estate organizations, Avison
Young is a full-service commercial real estate company comprising more
than 700 real estate professionals in 21 offices across Canada and in
the U.S. The company provides value-added, client-centric investment
sales, leasing, advisory, management, financing and mortgage placement
services to owners and occupiers of office, retail, industrial and
Editors/Reporters: please click on link to view and download photo
of South Point Exchange shopping centre
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SOURCE Avison Young
For further information: For further information:
Sherry Quan, National Director of Communications & Media Relations, Avison Young: (604) 647-5098;cell:(604) 726-0959
Bob Levine, Principal, Avison Young: (604) 647-5066
Michael Gill, Principal, Avison Young:(604) 647-5067or cell:(604) 230-0849