One of B.C.’s biggest real estate developers is teaming up with one of Canada’s largest institutional investors—and the partnership has some big expansion plans.
Burnaby-based Beedie has launched a new joint venture with Québec-based La Caisse (formerly branded as Caisse de dépôt et placement du Québec), which manages more than $550 billion in net assets, to acquire and develop industrial properties across Canada.
The partnership starts with a roughly $1-billion portfolio of Beedie industrial assets in Metro Vancouver, Calgary and Toronto. Beedie has sold La Caisse a 50 per cent stake in six warehouses and distribution centres for $500 million, while retaining the other half and continuing to manage the properties. Together, the assets represent about 2.7 million square feet of leasable space. Tenants include some familiar names: Amazon, Aritzia and Sobeys.
Together, the partners have established a deployment target of up to $2 billion in gross asset value as they pursue new industrial acquisitions across B.C., Alberta, Ontario and Québec. La Caisse is putting $500 million toward the joint venture’s growth, with Beedie taking the lead on finding new opportunities and investing alongside its partner at either a 25 or 50 per cent share, depending on the deal.
“This partnership represents a major step forward in our long-term strategy to scale our real estate platform through aligned institutional capital,” said Beedie president Ryan Beedie in a press release. “La Caisse and Beedie share a strong conviction in the long-term strength of the Canadian industrial real estate sector, and we are proud to build a partnership grounded in common values, disciplined execution, and a commitment to sustained growth.”
“By combining our capital and investment expertise with Beedie’s proven operating capabilities and deep market knowledge, we have created a scalable investment vehicle to build a portfolio of quality industrial assets in some of Canada’s most strategic markets,” said Rana Ghorayeb, executive vice-president and head of real estate at La Caisse.
