Barrhaven Amazon Building Sold For Just Under a Half Billion Dollars
By Barrhaven Independent Staff
Toronto-based Crestpoint Real Estate Investments Ltd. has acquired a 90 per cent share of the Barrhaven 2.8 million square foot building that serves as Amazon’s largest fulfillment centre in Canada.
Crestpoint announced Jan. 24 the acquisition of 222 CitiGate Drive. The Ottawa Business Journal reported last week that Crestwood paid $494 million to the developer, Broccolini.
Constructed in 2021, the building, which is fully leased by Amazon for 20 years, is the largest fulfillment centre ever built in Canada and uses the latest in smart, and automated and robotic technologies with capacity to handle over 100,000 packages a day.
Crestpoint acquired a 90 per cent interest in the property on behalf of its clients including the Crestpoint Core Plus Real Estate Strategy, Vestcor Inc., and Kiwoom Securities and Hangang Asset Management, a South Korean investment consortium.
“I am extremely proud of what Crestpoint has accomplished over the past 13 months. It is a testament to the skill and dedication of our entire team and our proven ability to identify opportunities and execute despite the challenges the market throws at us. We appreciate the continued support of our investors and partners and look forward to continued success in the future” said Kevin Leon, President and CEO of Crestpoint.
Broccolini also built a one million square foot warehouse leased by Amazon on Boundary Road. The company also owns land in North Gower along Highway 416 at Roger Stevens Drive, where they plan to build a 700,000 square foot warehouse. A group of local residents in North Gower has been opposing the project and is appealing its approval.
The completion of the CitiGate acquisition brings Crestpoint’s assets under management to over $7.5 billion and caps off a very active and productive past 13 months, which saw the completion of over $1.9 billion of acquisitions involving office, industrial, retail and multi-family opportunities, adding over 6.5 million square feet to its portfolio. Highlights of the activity during this period include:
- The Firm’s initial foray into the multi-family residential sector, following the investment of $500 million in the acquisition of over 2,000 apartment units.
- The completion of over $950 million of transactions in the industrial sector, including the acquisition of 4.25 million square feet of existing properties, along with over 260 acres of development land, which can support the future development of over 4.5 million square feet of industrial product.
- The investment of $400 million into the office sector, most notably through the acquisition of two signature office complexes, specifically a 95 per cent interest in SteelesTech Corporate Centre in Toronto and a 50 per cent interest in Place De Ville in downtown Ottawa. Together, the two properties represent over 1.2 million square feet of office product that add to the quality of Crestpoint’s office portfolio and are consistent with Crestpoint’s continued commitment to enhancing the overall environmental profile of its entire portfolio.
- The consistent strong performance of the Crestpoint Core Plus Real Estate Strategy, Crestpoint’s diversified, open-end investment vehicle that celebrated its 10-year anniversary in Q1 2021.
- The addition of 14 new members to the team, bringing the total number of investment professionals at Crestpoint to 32.