EDMONTON — Skyline Industrial REIT has entered the city of Edmonton and expanded its Calgary holdings with the purchase of four business parks with a total of more than two million square feet of industrial space from a Canadian pension plan at a total portfolio price of $309.25 million.
The portfolio is 97.7 per cent occupied and comprises 16 buildings on 129.5 acres of land, accommodating 51 tenants across the properties.
“The transaction is not only the largest ever for Skyline Industrial REIT, but also the largest closing across all of Skyline Group of Companies’ investment products,” said Jason Castellan, Skyline Group of Companies co-founder and CEO, in a release.
The four sites are Gateway Business Park and Foothills Industrial Park in Calgary and Rampart Business Park and Westpoint Corporate Centre in Edmonton.
“This transaction was a momentous one for Skyline Industrial REIT, and we are thrilled to be entering the city of Edmonton, expanding our Calgary holdings, and enhancing our presence across Canada,” Skyline Industrial REIT president Mike Bonneveld added.
The REIT sated “there is significant upside to this portfolio as both Calgary and Edmonton continue to experience significant net rental growth similar to other major markets across Canada.”
The release also cited CBRE’s recent Q2 2022 Canada industrial report, which stated Calgary leasing activity has persisted into Q2 2022 with two million square feet of net positive absorption and rent acceleration, with rents rising 15.3 per cent year-over-year to $9.49 per square foot.
After this acquisition Skyline Industrial REIT consists of 57 properties in 33 communities in five provinces across Canada, with more than 8.7 million square feet of industrial space.