- What Crestpoint has upped its ownership stake in two industrial buildings
- Why AIMCo sold the 50% interest at a value of $383/sq ft
- What next Home Depot has a 10-year lease on the larger building
Crestpoint Real Estate Investments has acquired a 50% stake in a two-building industrial portfolio in Mississauga from its joint-venture partner, valuing the package at a total of $320m, Green Street News can reveal.
Crestpoint paid its partner, Alberta Investment Management Corp., $159.4m for the half-interest in an 833,000 sq ft portfolio at 3150 and 3160 Derry Road East . The deal works out to $383/sq ft. Crestpoint’s total ownership stake is unclear, as is whether AIMCo retains an interest. Both firms declined to comment.
The deal, completed in late May, saw Toronto-based Crestpoint pay $130.9m for the 50% stake in the 605,000 sq ft warehouse and distribution center at 3150 Derry Road East and $28.5m for that stake in a 228,000 sq ft industrial building at 3160 Derry Road East. The adjacent buildings are 3km from Toronto Pearson International Airport.
Crestpoint/AIMCo acquired the 34-acre site at 3169 Derry Road East in 2017 for $60.2m. Crestpoint at the time owned a 20% stake in the parcel, with the balance held by AIMCo. Based on a land value of $41m, that worked out to $912,000/acre. Lennard Commercial Realty brokered the trade for seller Magellan Aerospace.
The new owners severed the parcel into two lots that were approved and developed over time. The single-storey building at 3160 Derry was completed in 2020 and is leased by Magellan for the use of a corporate office. Home Depot Canada signed a 10-year lease in 2023 for the warehouse at 3150 Derry.
Completed in 2023, that building has 90 loading doors – 86 at truck level and four for drive-in access – with a 40 ft clear height. There are 354 outdoor parking spaces and 125 spots for truck-trailer storage.
Crestpoint is part of Canadian asset management company Connor, Clark & Lunn Financial. AIMCo is an institutional investment manager and a Crown Corporation of the Alberta provincial government. It has $180bn under management.
