Colliers National Investment Services on behalf of Park Property Management completed the 21-property portfolio transaction to KingSett Capital.
One of the largest transactions in Colliers’ history was completed this past May 2022, when Colliers National Investment Services, on behalf of Park Property Management, completed the sale of a significant 21-property industrial portfolio in the Greater Toronto Area (GTA) to KingSett Capital for $461 million.
The portfolio sale is the largest industrial transaction in Colliers Canada history. Industrial offerings of this quality and size are rarely offered for sale due to the concentrated ownership of industrial properties in the GTA.
Location as a key selling factor
Colliers’ agents Victor Cotic, Nick Stathers, Stewart Metcalfe, Max Brenzel and Gord Cook represented Park Property Management to arrange for the offering and sale of the portfolio, which totals nearly 1.5M SF of rentable area in the strongest performing submarkets in the GTA: Mississauga; Toronto (Etobicoke); and Oakville. Seventeen of the Properties are located within a close cluster in Mississauga, near the intersection of Highways 401 and Highways 410/403.
“In my opinion, that’s the best location for an industrial property in Canada,” noted Victor Cotic, Executive Vice President, National Investment Services, in a recent interview with RENX. “You’re very close to the airport and you’re very close to those highways that are the north-south and east-west arteries of the city.”
Due to their location, individual building sizes, high replacement costs and appeal to industrial occupiers and tenants, the properties were highly coveted by institutional and REIT investors. The Colliers agents successfully navigated the sale through multiple rounds of bidding.
Strong fundamentals of GTA industrial market
Despite shifting macro-economic factors, this transaction is evidence of the continued strength of the GTA industrial market. While an availability rate of 4 to 5 per cent would constitute a “balanced” industrial market, as of Q2 2022, the availability rate of the GTA industrial reached a new historic low of 0.6 per cent, and average net asking rents reached $15.34 PSF (a 35% year over year increase). The lack of availability and upward pressure on rents for GTA industrial properties was a key selling feature emphasized by the Colliers team in the sale of this portfolio. In his interview with RENX, Victor explained that the GTA market is anticipated to remain a landlord’s market for the foreseeable future.
“Over the past five years, our average rents have gone up around 20 per cent year-over-year. The same thing has been happening with the average sale price. It’s very hard to find investment vehicles that give you those types of returns or year-over-year growth. Because of supply and demand imbalance, I don’t see that changing. I think we’re still on an upward trajectory.”
Experts choose to work collaboratively with experts
The Colliers agents worked alongside the Strategy & Pursuit team, along with members from the Marketing Studio, in a collaborative effort to bring the 21-property portfolio to the market with marketing assets that included Property Marketing Video, Brochure, a detailed Confidential Information Memorandum (CIM), email campaigns and a social media outreach program.
Congratulations to all Colliers team members and our clients, on the successful closing of this milestone transaction in the company’s history.
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