Thursday, February 11, 2021

Granite Completes US$195 Million Industrial Deal in Pennsylvania

 By Garry Marr CoStar News

Toronto-based Granite Real Estate Investment Trust closed on buying two industrial properties in Pennsylvania for 194.6 million U.S. dollars, moves that come after the REIT raised 288 million Canadian dollars in late 2020.

Granite has not disclosed its latest purchase, but CoStar data shows it bought properties with more than 2 million square feet of space at 12 Tradeport Road and 250 Tradeport Road in Nanticoke, Pennsylvania, about 120 miles northwest of Philadelphia, from NorthPoint Development.

Granite officials would not comment on the transaction, but in a securities filing for an equity raise in November, the REIT said it was "engaged in discussions with respect to the possible acquisition and financing of new assets," without offering specifics.

CEO Kevan Gorrie did offer some clues during a third-quarter conference call about where the REIT was looking to expand.

"Well, we're looking in Canada, but I think, rightly so, we're being very selective about what we're doing in Canada. We still are seeing superior returns in the U.S. and Europe. So I would say the bulk of our acquisitions, including development sites that we would look to acquire, would occur in Europe and the U.S.," said Gorrie.

The REIT is scheduled to release its fourth-quarter results March 3.

A new report suggests tenant demand for industrial real estate in Canada did not let up, with the vacancy rate dipping to 2.7% at the end of 2020 and rents in Toronto up 15.3% from a year ago.

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