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Scotiabank renews 560,000-sq.-ft. Scotia Plaza lease | RENX – Real Estate News EXchange

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IMAGE: Scotia Plaza in Toronto. (Courtesy KingSett, AIMCo)

Scotia Plaza in Toronto. (Courtesy KingSett, AIMCo)

KingSett Capital and AIMCo have announced Scotiabank will remain the anchor tenant at the Scotia Plaza office complex in downtown Toronto, renewing a 560,000-square-foot lease at the 40 King St. and 100 Yonge St. towers.

The renewal follows a year of planning and discussions, the co-owners say in a release, but the agreement means Scotiabank is vacating space at the top of the 40 King St. West tower. This means, “For the first time since the building’s construction, one of the best office spaces in Canada will be available for lease in 2023,” the owners say.

“We are very pleased that Scotiabank will continue to be a prominent tenant in the complex that bears its name. This renewal is a testament to how valued partners can work together to achieve a collective objective,” said Bill Logar, KingSett Capital’s executive vice-president of asset management, in the announcement Monday morning.

“Sustainable premium office real estate continues to be integral to promoting collaboration and productivity among employees in the workplace.”

Financial details of the renewal were not released.

Scotiabank has 1.1 million square feet

The renewal brings Scotiabank’s long-term commitment at the Scotia Plaza Complex to 1.1 million square feet.

KingSett, which owns its share as part of its Canadian Real Estate Income Fund (CREIF), and AIMCo have invested $85 million in capital improvements for the complex over the last five years.

“This extension is a testament to the outstanding efforts of our operating and tenant partners. Scotia Plaza’s zero-carbon certification fully aligns to AIMCo’s sustainability commitments and the property continues to be a great investment for our clients,” said Tony Vadacchino, director, real estate, for AIMCo.

In addition to Scotiabank’s ongoing commitment at Scotia Plaza, the bank has also committed to a major lease just a few buildings away at the new Scotiabank North Tower at Bay Adelaide Centre.

The bank is taking about 420,000 square feet in that new 32-storey, 810,000-squar- foot office tower at 40 Temperence St., which is currently under construction.

The Bay Adelaide complex is being developed by Brookfield Property Partners.

“We are proud to renew our tenancy in Scotia Plaza, the largest zero carbon-certified building in Canada. We continue to believe in the importance of having a prominent, physical location in Toronto’s downtown core” said Stephen Morson, the senior vice-president of real estate for Scotiabank.

The Scotia Plaza complex is comprised of four buildings: 40 King St. W., 44 King St. W., 100 Yonge St. and 11 Adelaide St. W.

Scotia Plaza’s 40 King St. W. is one of four buildings (at more than 1.5 million square feet) that has earned the Zero Carbon Building – Performance v2 Certification from the Canada Green Building Council (CaGBC).

The tower is undergoing a transition to remove all carbon-intensive mechanical systems over the next 18 months, to take it beyond the certification’s latest zero-carbon balance requirements by also offsetting its emissions from waste-to-landfill generated onsite.

The building has also achieved the largest Fitwel certification in Canada for a multi-tenant base building. Other environmental certifications include LEED Platinum and WiredScore Certified: Gold.

About AIMCo and KingSett

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than $118 billion of assets under management. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 31 pensions, endowments and government funds.

Founded in 2002, KingSett has raised $12 billion of private equity for its growth, income, urban, mortgage and affordable housing strategies. KingSett owns interests in an $18.4-billion portfolio of assets and continues investing in a wide range of real estate properties, developments, joint ventures and mortgage lending.

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Real eState

What Is the Canada Mortgage and Housing Corporation (CMHC)

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Protecting your mortgage in Canada

The Canada Mortgage and Housing Corporation (CMHC) is a Canadian Crown Corporation that serves as the national housing agency of Canada and provides mortgage loans to prospective buyers, particularly those in need.

Understanding the Canada Mortgage and Housing Corporation (CMHC)

The Canada Mortgage and Housing Corporation (CMHC) serves as the national housing agency of Canada. CMHC is a state-owned enterprise, or a Crown corporation, that provides a range of services for home buyers, the government, and the housing industry.

CMHC’s stated mission is to “promote housing affordability and choice; to facilitate access to, and competition and efficiency in the provision of, housing finance; to protect the availability of adequate funding for housing, and generally to contribute to the well-being of the housing sector.”1

A primary focus of CMHC is to provide federal funding for Canadian housing programs, particularly to buyers with demonstrated needs. CMHC, headquartered in Ottawa, provides many additional services to renters and home buyers, including mortgage insurance and financial assistance programs. CMHC acts as an information hub for consumers, providing information on renting, financial planning, home buying, and mortgage management.

CMHC also provides mortgage loan insurance for public and private housing organizations and facilitates affordable, accessible, and adaptable housing in Canada.2 Additionally, CMHC provides financial assistance and housing programs to First Nations and Indigenous communities in Canada.3

Professionals and Consumers

CMHC provides services to both professionals and consumers. For professionals, CMHC aims to work in collaboration with different groups to provide affordable housing. Services include project funding and mortgage financing, providing information to understand Canada’s housing market, innovation and leadership networks to access funding and talent to spur housing innovation and increase supply, and providing speakers and hosting events for the industry.4

For consumers, CMHC seeks to provide all the tools an individual would need to either buy a home or rent a home and a variety of information and assistance for current homeowners, such as managing a mortgage, services for seniors to age in place, and financial hardship assistance.56

For financial hardship and mortgage assistance, CMHC provides tools that include payment deferrals, extending the repayment period, adding missed payments to the mortgage balance, moving from a variable-rate to a fixed-rate mortgage, and other special payment arrangements.7

Canada Mortgage and Housing Corporation (CMHC) and the National Housing Strategy

In November 2017, the Canadian government announced the National Housing Strategy.8 Rooted in the idea that housing is a human right, this 10-year, $70 billion project will largely be administered by CMHC, although some services and deliverables will be provided by third-party contractors and other Canadian federal agencies.9

Strategic initiatives of the National Housing Strategy include:

  • Building new affordable housing and renewing existing affordable housing stock
  • Providing technical assistance, tools, and resources to build capacity in the community housing sector and funds to support local organizations
  • Supporting research, capacity-building, excellence, and innovation in housing research10

History of the Canada Mortgage and Housing Corporation (CMHC)

CMHC was established in 1946 as the Central Mortgage and Housing Corporation by the federal government in Canada with the primary mission of administering the National Housing Act and the Home Improvement Loans Guarantee Act and facilitating discounts to mortgage companies. Initially, CMHC began by providing housing to returning Canadian war veterans, and toward the end of the 1940s, CMHC began to administer a program providing low-income housing across Canada.11

In 1947, CMHC was responsible for opening Regent Park, a large low-income housing project, and Toronto’s first urban renewal project. By the 1960s, CMHC introduced co-op housing and multi-unit apartment buildings throughout Canada.11

In 1979, the Central Mortgage and Housing Corporation changed its name to the Canada Mortgage and Housing Corporation

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Real eState

Canadian home price gains accelerate again in May

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LACKIE: Real estate market going through 'recalibration' of supply, demand – Toronto Sun

Canadian home prices accelerated again in May from the previous month, posting the largest monthly rise in the history of the Teranet-National Bank Composite House Price Index, data showed on Thursday.

The index, which tracks repeat sales of single-family homes in 11 major Canadian markets, rose 2.8% on the month in May, led by strong month-over-month gains in the Ottawa-Gatineau capital region, in Halifax, Nova Scotia, and in Hamilton, Ontario.

“It was a third consecutive month in which all 11 markets of the composite index were up from the month before,” said Daren King, an economist at National Bank of Canada, in a note.

On an annual basis, the Teranet index was up 13.7% from a year earlier, the 10th consecutive acceleration and the strongest 12-month gain since July 2017.

Halifax led the year-over-year gains, up 29.9%, followed by Hamilton at 25.5% and Ottawa-Gatineau at 22.8%.

Housing price gains in smaller cities outside Toronto and its immediate suburbs again outpaced the major urban centers, with Barrie, Ontario leading the pack, up 31.4%.

On a month-over-month basis, prices rose 4.9% in Ottawa-Gatineau, 4.3% in Halifax and 3.7% in Hamilton.

The Teranet index measures price gains based on the change between the two most recent sales of properties that have been sold at least twice.

Canada‘s average home selling price, meanwhile, fell 1.1% in May from April, Canadian Real Estate Association data showed on Tuesday, but jumped 38.4% from May 2020.

 

(Reporting by Julie Gordon in Ottawa; Editing by Christopher Cushing)

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Economy

Bank of Canada seeing signs of cooling in hot housing market

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Canada’s mortgage insurer tightens rules

The Bank of Canada is starting to see signs that the country’s red hot housing market is cooling down, although a return to a normality will take time, Governor Tiff Macklem said on Wednesday.

The sector surged in late 2020 and early 2021, with home prices escalating sharply amid investor activity and fear of missing out. The national average selling price fell 1.1% in May from April but was still up 38.4% from May 2020.

“You are starting to see some early signs of some slowing in the housing market. We are expecting supply to improve and demand to slow down, so we are expecting the housing market to come into better balance,” Macklem said.

“But we do think it is going to take some time and it is something that we are watching closely,” he told the Canadian Senate’s banking committee.

Macklem reiterated that the central bank saw evidence people were buying houses with a view to selling them for a profit and said recent price jumps were not sustainable.

“Interest rates are unusually low, which means eventually there’s more scope for them to go up,” he said.

Last year, the central bank slashed its key interest rate to a record-low 0.25% and Macklem reiterated it would stay there at least until economic slack had been fully absorbed, which should be some time in the second half of 2022.

“The economic recovery is making good progress … (but) a complete recovery will still take some time. The third wave of the virus has been a setback,” he said.

The bank has seen some choppiness in growth in the second quarter of 2021 following a sharp economic recovery from the COVID-19 pandemic at the start of the year, he added.

(Reporting by David Ljunggren and Julie Gordon; Editing by Peter Cooney and Richard Pullin)

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