January 17, 2019, VANCOUVER, BC – Concert’s CREC Commercial Fund LP (the “Fund”) today announced it has entered into an agreement to purchase a 90% interest in a one million square foot distribution facility in Ottawa – the largest in the National Capital Region – which is currently under construction and fully-leased to Amazon on a long-term basis. The Fund will be partnering with high-profile developer, Broccolini, which retains an interest in the project. CBRE Canada facilitated the deal in its role as advisor.
Situated in the City of Ottawa on an expansive 96.2-acre site, the distribution facility located at 5225 Boundary Road will be a best-in-class industrial facility serving as one of Amazon’s fulfillment centres in Canada.
The single-tenanted facility, which also includes 35,000 square feet of office and training space, features a 36-foot clear ceiling height, 99 truck-level doors and parking for more than 1,000 vehicles. Strategically located near a major interchange on the Trans-Canada highway, the flexibly-designed facility provides efficient access to major cities and population centres. The planned facility will support 600 full-time employees and will serve key markets in eastern Canada, including Ottawa and Montreal, which represent a population base of over five million.
Upon completion of the construction of the project by Broccolini, Concert will acquire a 90% interest in 5225 Boundary Road and enter into a co-ownership with Broccolini, a family-owned, single-source provider of construction, development and real estate services that caters to industrial, commercial and residential markets. Broccolini was selected by Amazon to build its Ottawa fulfillment centre based on the company’s extensive experience and track record. Broccolini is currently overseeing the facility’s construction, which is scheduled to be complete in the second half of 2019.
Amazon has fully leased the facility on a long-term basis. The Ottawa facility will be one of 11 Amazon fulfillment centres in Canada. Amazon is a multi-national technology company with more than 600,000 employees and fiscal 2017 revenue of $177.9 billion US. Amazon is the largest e-commerce marketplace and cloud computing platform in the world as measured by revenue and market capitalization.
“This is an exciting acquisition as it represents an excellent opportunity for the Fund to establish a foothold in the Ottawa region with a high-quality e-commerce industrial facility, while supporting Concert’s continued national growth and expansion,” says Brian McCauley, Concert’s President & Chief Executive Officer.
“Broccolini is excited to be partnering with Concert on this project”, says Michael Broccolini, Vice President, Business Development and Finance, Broccolini. “Our shared values ensure that Amazon will continue to receive the exceptional quality service that defines Broccolini and Concert’s customer experience commitment.”
“This deal represents a rare opportunity to strengthen our commercial income-producing property portfolio through the addition of an exceptional property and to partner with best-in-class, well-aligned groups in Broccolini and CBRE,” says Andrew Tong, Managing Director of CREC Commercial Fund LP.
“CBRE is pleased to assist Concert and Broccolini in this record-breaking deal for the Ottawa market. The partners were a natural fit given their strong alignment of values, reputation and approach,” says Peter Senst, CBRE’s President, Canadian Capital Markets.
Concert’s fully-subscribed CREC Commercial Fund LP is a diversified Canadian portfolio. With ongoing plans to expand, this open-ended, limited partnership fund maximizes long-term value for investors by investing in, and managing, commercial and office real estate in Canada. The high-quality portfolio is managed by Concert and serves as Concert’s exclusive office and industrial platform. With the acquisition of this unique facility, the Fund’s value will increase to approximately $1.6 billion and will include more than 9.3 million square feet of industrial and office properties.
Founded in 1989, Concert specializes in developing rental apartments, condominium homes and retirement communities, acquiring and developing commercial, industrial and infrastructure properties and in property management. With operations across Canada and the backing of more than 200,000 Canadians represented by the union and management pension plans who own Concert, our commitment is to build strong, sustainable communities across Canada. www.ConcertProperties.com
With offices in Montreal, Ottawa and Toronto, Broccolini is a family-owned, single-source provider of construction, development and real estate services. The company caters to the industrial, commercial and residential markets in Canada. Recognized for quality workmanship, innovative technology, open collaboration and exceptional standards, Broccolini offers a one-stop approach to the planning, development and construction of remarkable buildings. www.broccolini.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. In Canada, CBRE Limited employs 2,200 people in 22 locations from coast to coast. Please visit our website at www.cbre.ca.
Director, Corporate Communications