A Germany-based investment fund is among a group of four investors that has bought the 1.4-million-square-foot Edmonton City Centre office and retail complex in downtown Edmonton.
The complex includes TD Tower, Oxford Tower, Centre Point Place and the 800,000-square-foot Edmonton City Centre mall.
Oxford Properties sold the portfolio in a deal announced November 12. Financial details were not released, but sources say the property is valued in the range of $300 million.
The portfolio, collectively known as Edmonton City Centre, has been acquired by: LaSalle Investment Management’s LaSalle Canada Property Fund (LCPF); Frankfurt-based fund-servicing company Universal Investment on behalf of Bayerische Versorgungskammer; and two managing owners, North American Development Group (NADG) and Canderel.
“This acquisition aligns well with LCPF’s objective to provide investors with immediate exposure to a diverse and mature portfolio of assets focused in Canada’s six major markets,” LaSalle Canada chief executive officer John McKinlay said in a release. “We are pleased with the strong relative performance of the fund and the sustained interest from multinational investment partners.”
NADG entities, including Centrecorp Management, will provide property management services and leasing for the retail component. Canderel entities, including Humford Management, will provide property management services and leasing for the office and non-retail components.
Mortgage origination sourcing and placement for the deal was provided by an entity related to Forgestone Capital.
LaSalle’s release noted the nearby arena and concert venues and pointed out that Edmonton’s downtown residential population has grown in the last 10 years and is expected to reach 18,000 residents by 2020.
The deal follows the September announcement of Germany-based real estate fund Deka Immobilien paying $503 million (345 million euros) for the commercial space in the new Stantec tower in Edmonton’s ICE District. It is the largest office sale in Edmonton’s history, in terms of dollar value