Ontario-based Skyline Commercial Real Investment Trust (REIT) – www.skylinecommercialreit.ca – has acquired a Class A, four-site industrial portfolio in Calgary for $132 million. The deal closed on March 25.
Collectively, the portfolio comprises more than $1.7 million square feet of commercial space in a total of 11 buildings and is 98 per cent occupied.
Three of the properties, with a total of nine buildings, are located next to Calgary International Airport with access to Deerfoot Trail, Calgary’s major north-south freeway. The property at 7007 54th Street SE, with two buildings, is near multiple industrial parks as well as 52nd Street in Calgary’s south-central industrial areas. It is also close to CP Rail’s Intermodal facility.
“These properties are all of modern design and are suitable for warehousing and logistics purposes relating to uses spanning the food and e-commerce sectors as well as broader distribution requirements. Less than 1 per cent of the current income of the portfolio is related to the oil and gas sector,” said Michael Mackenzie, president of Skyline Commercial.
This purchase brings Skyline Commercial REIT’s assets to total of six properties in Calgary, which MacKenzie noted is the “fourth-largest industrial market in Canada.”
With the purchase, Skyline Commercial REIT now comprises 88 properties in 34 communities in five provinces across Canada, with more than 7.6 million square feet of commercial space.
Skyline’s investment is reflective of a strong industrial action this year in Alberta’s biggest city.
The Network, a real estate market intelligence firm, notes that industrial warehouse sales in Calgary through the first three months of this year reached $161 million, with a further $142 million worth of industrial land transacted.