Industrial building with greenery in front of it
  • Southern Ontario
  • Canada
  • Industrial
  • January 2019

Southern Ontario Industrial Portfolio

Six industrial assets across southern Ontario.

Industrial building and blue sky

View on the loading dock and containers

About the buildings

Acquired between 2014 and 2017, the six properties in the Southern Ontario Industrial Portfolio represented over 840,000 square feet of industrial space.

The portfolio consisted of small-bay industrial assets, and a mix of highly functional warehouse and distribution facilities ranging from 38,000 to 298,000 square feet which could accommodate a variety of tenants. Three assets were located in Ottawa, two in Whitby and one in Cambridge.

Investment rationale and value creation

The Canadian value-add investments team’s research-driven thesis of higher demand for industrial space, particularly in the Southern Ontario marketplace where vacancies were below 4.0%, led them to believe that a portfolio of assets such as this one could result in significant value creation for investors.

By signing leases with a number of well-known tenants, the team was able to enhance the portfolio’s income risk profile by doubling the percentage of gross rentable area leased to credit-rated tenants and create a stable cash flow profile combined with net operating income growth potential. The geographic, tenant and asset composition of the portfolio created was able to offer a truly diverse portfolio of assets that offered a combination of stable income plus value creation opportunities for its purchaser.

What we achieved

When the Southern Ontario Industrial Portfolio was sold in December 2018 it was 96% leased with a weighted average lease term of over three and a half years. The agreed sale price represented a solid profit for our investors.

View on the city with full of the lights

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Important information

The assets presented are meant for illustrative purposes only, are subject to change without notice and are not meant as a projection or estimate of the nature of any future investments to be made by the Fund or returns on any such investments. This information has been prepared by LaSalle in order to illustrate the type of assets held and/or transactions completed by the Fund; transactions for properties exhibiting the same or similar characteristics may not be available or profitable in the future.