Cadillac Fairview (CF), of Toronto, has announced the purchase of the 146-acre Rosemont Business Park in Balzac, Alberta through a joint venture with Calgary-based Hopewell Development LP (Hopewell) for an undisclosed price.
The business park site is close to the Calgary airport in the Balzac Industrial sector and will be developed into 2.3 million square feet of industrial gross leasable area, according to a Cadillac Fairview-Hopewell joint statement issued November 7.
CF and Hopewell confirmed plans for the construction of up to five buildings, occupying 45 per cent of available land area and featuring 40-foot clear height, to be built in phases between 2024 and 2029. The project is aimed at the distribution and logistics industrial sector.
“The Rosemont Business Park is attractively situated in a high-potential market area, served with solid transportation links,” said Wayne Barwise, executive vice-president of development for Cadillac Fairview, in the announcement. “Major players such as Walmart, Sobeys and Home Depot all have distribution hubs nearby and Calgary is emerging as a robust-growth, up-and-coming market for key logistics uses, with limited inventory available in the foreseeable future to meet increased demand.”
Calgary could welcome the new space. The Calgary region now has a tight industrial vacancy rate of 2.2 per cent, according to Colliers, and lease rates increased to an average of $11.65 per square foot, as of the third quarter of 2023.
Financial details of the purchase have not been released, nor has information about the structure of their partnership.
