Crestpoint buys FedEx centre in Winnipeg

Purchase of 38-acre distribution facility latest sign of investor action in Winnipeg’s strong industrial sector

Western Investor
February 1, 2021

The brand-new FedEx distribution centre, Winnipeg, has sold. | Crestpoint
— The new FedEx distribution centre, Winnipeg, has sold. | Crestpoint

Toronto-based Crestpoint Real Estate Investments Ltd. has bought the FedEx distribution centre in Winnipeg, bringing Crestpoint’s total assets under management to $5.5 billion.

Situated on 38.1 acres of land in the St.Boniface Industrial Park in southeast Winnipeg, the FedEx centre is a 248,000-square-foot brand new design-build package distribution and sorting facility. St. Boniface is Winnipeg's second largest industrial park and offers access to numerous key transportation routes.

The state-of-the-art Class-A facility features a clear height of 28 feet with 76 dock loading doors and six drive-in doors. The single-tenant industrial property is fully leased to FedEx for 15 years.

The single-tenant FedEx complex is the second industrial acquisition that Crestpoint has made in Winnipeg in the past 14 months.

“Given its central location within the Winnipeg market and the long-term commitment from such a reputable tenant we are really excited to add this asset to our Fund." said Kevin Leon, president & CEO of Crestpoint.

Crestpoint did not release the purchase price.

Winnipeg has a relatively strong industrial sector, with a vacancy rate of 4.2 per cent and a total of 373,000 square feet of positive lease-up in 2020, Colliers International reports.

There is growing demand for new industrial product as much of the existing inventory is now considered obsolete. QuadReal’s new 175,000-square-foot NorthWest Business Park was fully leased prior to completion last year, as one example.

The Plessis Business Park has started in the St. Boniface Industrial Park. The first building is now ready for occupancy and features new and modern construction with high 28' ceilings and low-site coverage for optimal truck movements, according to Shindico Realty Inc.

Winnipeg developer MMI Asset Management Ltd. broke ground October 15, 2020, on a new $46 million, 17-acre industrial park at CentrePort Canada in suburban Rosser. The Steele Business Park will see the first of three 80,000-square-foot buildings completed and ready for occupancy by the end of summer 2021.

With 528,000 square feet of new industrial underway in the Winnipeg region “supply will begin to meet demand as we head into 2021,” according to Colliers most recent Winnipeg industrial report.



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