exterior of 99 Savannah Oaks

LaSalle Investment Management’s LaSalle Canada Property Fund (LCPF) has topped $1 billion in value and made a major acquisition in Brantford with the purchase of a half million-square-foot industrial property.

Lasalle’s LCPF closed the acquisition of a 527,568-square-foot, 30-foot clear height, fully leased distribution centre at 99 Savannah Oaks Dr. in Brantford for an undisclosed price from GWL Realty Advisors.

The building opened in 2006 and has one drive-in shipping door, more than 80 loading docks and a secure parking lot for trailers. Procter & Gamble is the lead tenant and there are three other smaller tenants.

The property benefits from the strong demand of the Greater Toronto Area (GTA) industrial market that has driven growth to peripheral markets. Brantford is about 100 kilometres west of Toronto, along the Highway 403 corridor.

“It’s a highly functional, quality, well-located industrial building with great access to the highway system on the west side of the GTA,” said LaSalle Canada chief executive officer John McKinlay. “The industrial tentacles have been spreading out for a while to Meadowvale, Milton, Kitchener-Waterloo, Guelph and Hamilton, and we really feel like Brantford is next.”

McKinlay said pricing in Brantford was 175-plus basis points lower than for Toronto industrial properties and the price for the new property was less than $100 per square foot. It also has below-market rents and relatively short remaining lease terms, which he found attractive.

“I believe rents are growing and accelerating, and I like to have line of sight in terms of capturing those accelerating rents as opposed to making a passive bet on rent growth for the next 10 years,” said McKinlay.

LaSalle Investment Management manages approximately $71 billion of assets in private and public real estate property and debt investments. LaSalle Canada has executed more than $6.6 billion in Canadian real estate deals since 2000 and has 9.2 million square feet of assets valued at $2.1 billion under management.