Business

Real estate investor buys Rona land

An Ontario firm has purchased the 6.8-acre property where the Penticton Rona Home Centre is.

Crestpoint Real Estate Investments Ltd., a business dedicated to providing institutional and high net-worth investors with direct access to high quality commercial real estate assets in Canada, announced on Tuesday the acquisition of the land where Rona Home Centre is located a deal valued just under $9 million.

Crestpoint’s portfolio includes retail property in Quebec and Shoppers Drug Mart in Parksville, B.C., and office property in Toronto. They also have industrial property in Ontario, Quebec and the Deerfoot Distribution Centre in Calgary.

The property Crestpoint purchased in Penticton includes a 52,000 square foot facility, 100 per cent occupied by Rona Home Centre.

“We’re excited to be adding this Rona facility to our portfolio as it provides us with exposure to a growing market delivering exceptional value,” said Kevin Leon, Crestpoint’s president and CEO. “The property is superbly located in Penticton, which acts as the regional service centre for the South Okanagan Valley, as well as being a major tourist and wine destination. Long-term occupancy agreements with a high quality tenant like Rona, together with historically low financing rates, should translate into strong, rising cash flow return for our investors.”

Penticton economic development officer David Arsenault said many investors consider the larger catchment area, which includes 80,000 plus people in the regional district. A considerable market to draw from.

“I don’t know if it is because of a turn in the economy of our economic investment zone program, but there certainly has been more interest this year than the past couple of years given the recession,” said Arsenault.

“What you will see when Landmark is up and running downtown, will be interest in that area. There are a couple projects on the go in the downtown core that could come to fruition. Sometimes these people are just speculating, but it would be nice to see that turn into actual dollars.”

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