LaSalle Investment Management announces first acquisitions for Canadian Income & Growth IV fund
23 June 2014 - LaSalle Investment Management has announced the acquisition of three suburban office buildings in Calgary and Edmonton, Alberta for $70.0 million.
This is the first acquisition for LaSalle’s Canadian Income & Growth IV fund and represents a going-in yield of 7.0 per cent.
The three properties acquired are Plaza 124 at 10216 - 124 St NW, Edmonton, AB; Stockman Centre at 2116 – 27 Ave NE, Calgary, AB; and Riverbend Atrium at 200 Rivercrest Dr SE, Calgary, AB.
With a total footprint of 305,452 square feet, each building is well-located in established suburban office nodes in highly-accessible locations, with direct access to public transit and nearby amenities. The portfolio provides an excellent mix of existing covenant tenancies and an opportunity to further enhance returns through new leasing and renewals. The three properties had an average occupancy of 91% at the time of acquisition.
“These assets are an ideal first acquisition for the Canadian Income & Growth IV fund,” said Chris Langstaff, Senior Vice President at LaSalle Investment Management Canada. “The Edmonton and Calgary markets are forecast to have the strongest economic and job growth of any major market in the country over the coming years. These favourable conditions will aid us in our leasing efforts, which combined with an attractive yield on the properties at the time of purchase, will allow us to create value for our clients.”
The Canadian Income & Growth IV fund had its initial closing in December 2013, with an investment strategy that targets value-add real estate opportunities across the office, retail, industrial and multifamily residential sectors, with a focus on Canada’s top six metro areas: Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. LaSalle’s experienced Canadian investment team’s deep understanding of the market provides investors with the opportunity to access potential income and capital appreciation in Canada’s real estate market.
LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), was recently ranked among the top 5 mid-sized companies in Pension & Investments magazine’s 25 Best Places to Work in the U.S. list for 2013. For more information about LaSalle Investment Management, please visit www.lasalle.com.