Toronto a good place for foreign investment
Once again, commercial real estate in Toronto, Ontario Canada is proving to be a good place for foreign investment. The recent sale of a major downtown office portfolio by a Limited Partnership initiated by HSBC Trinkaus Real Estate GmbH to the Canadian investment powerhouse Dundee is a case in point.
Piloted by the CTL Group and their president, Mr. Clemens Sels, this sale netted a return on initial investment of 305% on the investors’ equity, plus annual distributions to the investors from 2005 to 2012 totalling 64.25%.
However, this amazing return is not just luck, but rather was largely dependent upon finding the right asset manager with creative thinking.
Eight years ago the CTL Group was entrusted with the responsibility of finding office properties for their major institutional client. Through separate purchases over a short period of time, the CTL Group helped the client acquire diverse office properties with tenants that included the Canadian Federal Government and major national and international institutions.
Once the acquisition phase was complete, the CTL Group encouraged their client to empty an under-performing retail mall in one of the buildings. Not an easy decision, but it allowed the CTL Group to transform the former mall and a long vacant basement into a dynamic, two level retail space with great frontage on Yonge Street in the heart of Toronto. The entire two-level space was ultimately leased to a major National Retailer on a very lucrative and long term lease.
Colonia Treuhand Management Inc. contributed to the success of the investment by maintaining and upgrading the portfolio buildings, piloting several much needed capital improvement upgrades that resulted in increased rents when it came time for tenant renewals or new leasing. The strong control of operating costs and realty tax obligations by the management team also contributed to higher net rents as leases rolled over in the properties.
When it came time for HSBC Real Estate GmbH to sell the assets, the portfolio was in immaculate condition, fully leased and maximizing profits. The sale process was handled with utmost discretion by M.J. Lawson Real Estate Ltd. in Toronto under the direction of the CTL Group asset managers. That process and direction resulted in multiple Offers to Purchase from only the most qualified potential purchasers and a smooth and successful Closing.