Year-to-date sales of retail properties in the Greater Toronto Area (GTA) have surpassed $1.5 billion, signaling a healthy market for the first half of 2014. Notably, REITs and REOCs have kept a low profile during this time period.
“Discussions with market participants indicate that these groups are challenged to find assets of sufficient size and quality,” reads a new Avison Young investment newsletter. “Private buyers continue to lead activity on unenclosed assets, with 20 out of the 22 plazas sold in the GTA in 2014 YTD going to this group.”
Two major acquisitions represent 48 per cent of total sale volume: British Columbia Investment Management Corp’s purchase of the upscale Bayview Village Shopping Centre and the sale of Hudson’s Bay’s flagship downtown Toronto outpost to Cadillac Fairview.
Outside of the GTA, strong sales were recorded in Hamilton, Ont., thanks to the $184 million sale of the Centre of Barton shopping mall to Trivest – the third largest sale in Ontario.