+ Even the technology that promises to united us, divides us. Each of us is now electronically connected to the globe, and yet we feel utterly alone. – Dan Brown
+ Stand for something. Make your life mean something. Start where you are with what you have. You are enough. – Germany Kent
KUDOS
+ to Jon Cornish to be inducted to the Canadian Football Hall of Fame
+ to Suzanne de Courville Nicol, awarded the Sovereign’s Medal for Volunteers; presented by Governor-General Julie Payette
INTERESTING REAL ESTATE NEWS FROM OTHER PLACES
+ the Guggenheim Abu Dhabi (450,000 sq. ft.); Frank Gehry designed project first announced in 2007 is expected to go ahead this year – construction to start soon …
+ West Corridor Constructors reached financial close on the Highway 401 Expansion project in the Greater Toronto Area; total contract valued at $639.8 million
this week in REITS
+ CAP REIT closed $345.0 million equity financing
+ Choice Properties REIT closed an acquisition – 50% interest, JV with Greenwin, to develop the 0.9 acre site with two-tower rental building (700 units; 30% to be maintained as ‘affordable housing’) on a TOD site near Yonge St. & College St. in Toronto
+ Firm Capital Property Trust closed $26.2 million equity financing
+ Firm Capital Property Trust closed $16.3 million equity financing by private placement
+ Melcor REIT acquired 56,084 sq. ft. fully leased retail warehouse property in NE Calgary for $12.45 million
+ Plaza Retail REIT closed its acquisition of 50% interest in Tri-City Centre (197,000 sq. ft.) in Cambridge, ON for $12,650,000.0
GLOSSARY + ABBREVIATIONS + ACRONYMS
+ ABS – Asset Backed Securities
+ AEMERA – Alberta Environmental Monitoring Evaluation and Reporting Agency
+ AER - Alberta Energy Regulator
+ AIMCo – Alberta Investment Management Corporation
+ ASC – Alberta Securities Commission
+ AUC – Alberta Utilities Commission
+ BBL – barrel
+ BBLS/D – barrels per day
+ BIM – Building Information Modeling
+ BOE – barrel of oil equivalent
+ Brent – North Sea crude benchmark price
+ CapEx – capital expenditures
+ CAPP - Canadian Association of Petroleum Producers
+ cap rate – capitalization rate
+ CBD – Central Business District
+ CCAA – Companies’ Creditors Arrangement Act
+ CCS – Carbon Capture and Storage
+ CEAA – Canadian Environmental Assessment Agency
+ Chapter 11 – court ordered creditor protection under U.S. bankruptcy law
+ COSIA - Canada's Oil Sands Innovation Alliance
+ CPPIB – Canada Pension Plan Investment Board
+ CREB - Calgary Real Estate Board
+ DAB – Development Appeal Board
+ DILBIT – diluted bitumen
+ DIP – debtor in possession
+ EBITDA – earnings before interest, taxes, depreciation and amortization
+ EIA – U.S. Energy Information Administration
+ EPC – engineering, procurement and construction
+ E & P – exploration and production
+ FEED – front-end engineering and design
+ FERC – U.S. Federal Energy Regulation Commission
+ Forbearance Agreement – a short term formalized relief arrangement when loan terms are in default
+ FSR – floor space ratio
+ FTC – U.S. Federal Trade Commission
+ GJ – gigajoule
+ GLA – gross leasable area
+ GOA - Government of Alberta
+ GOM – Gulf of Mexico
+ GTA – greater Toronto area
+ GW - gigawatt
+ G&A – general and administrative
+ HOOP – Healthcare of Ontario Pension Plan
+ IEA – International Energy Agency
+ IFMA – International Facility Management Association
+ IMCO – Investment Management Corporation of Ontario
+ IPO – Initial Public Offering
+ ISO – International Organization for Standardization
+ JV – Joint Venture
+ KV – kilovolt (one thousand volts)
+ KW – kilowatt (one thousand watts)
+ LEED – Leadership in Energy and Environmental Design
+ LNG – Liquefied Natural Gas
+ LPG – Liquefied Propane Gas
+ MCF – thousand cubic feet
+ MCF/D – thousand cubic feet per day
+ mezz – mezzanine debt
+ MOA – Memorandum of Agreement
+ MOU – Memorandum of Understanding
+ MT – metric ton
+ MW – megawatt (1 million watts)
+ NAFTA – North American Free Trade Agreement
+ NEB – National Energy Board
+ NGLs – natural gas liquids
+ OPEC – Organization of Petroleum Exporting Countries
+ P3 – Public Private Partnership
+ PADD – U.S. Petroleum Administration for Defense Districts
+ PPA – Power Purchase Agreement
+ PSAC – Petroleum Services Association of Canada
+ PSP – Public Sector Pension Investment Board
+ RECA – Real Estate Council of Alberta
+ REIT – Real Estate Investment Trust
+ RFI – request for information
+ RFP – request for proposals
+ RFQ – request for qualifications
+ RICS – Royal Institution of Chartered Surveyors
+ RNG – renewal natural gas
+ SAGD – steam assisted gravity drainage
+ SAIT – Southern Alberta Institute of Technology
+ S & P – Standard & Poors
+ sub – subsidiary
+ sub. – subordinated
+ tic toc – we’ll see …
+ TOD – transit oriented development
+ UDI – Urban Development Institute
+ WTI – West Texas Intermediate crude benchmark price
this site is refreshed with a new issue every Tuesday
updated April 30, 2019
TODAY'S HEADLINES
HEADLINES: Alberta cabinet announcements today | AON risk report | Black Diamond Group contract | deal | Occidental bidding up Anadarko sale | Macquarrie exit | Solium sale imminent + Carol Kitchen interview + deals + rig counts + upcoming events, appointments, Golf Tournaments + REIT NEWS + financings
CONVERSATIONS
FACILITYCalgary Publisher Mark Kolke interviews interesting people. He seeks a glimpse of what drives them, how they see the world and what they see in Calgary's future:
This week's conversation with Carol Kitchen, Pres. & CEO @ UFA (United Farmers of Alberta)
A recent conversation with Les Gombik, Managing Partner Calgary, Caldwell
A recent conversation with Laureen Regan, Pres. & CEO @ BOOM Group Inc.
+ Bruce Pittet to Sr. VP Asset Mgmt. & COO @ American Hotel Income Properties REIT LP
+ Capital Power Corporation agreed to acquire Goreway Power Station Holdings Inc. for $387.0 million plus assumption of $590.0 million in construction debt – 875MW generating capacity in Brampton/GTA
+ City of Calgary has turned over the ‘old central library – main floor and basement’ to University of Alberta School of Architecture, Planning and Landscape – opening of City Building Design Lab together with $1.5 million from Calgary Municipal Land Corporation will support 5 years of operational costs
+ City of Calgary negotiations for a replacement facility for the Saddledome continue; reporting indicates the City will hold ownership, Calgary Flames ownership will be tenants … tic toc
+ CO2 Solutions Inc. completed its first commercial carbon capture unit project, JV - Fibrek General Partnership and Serres Toundra Inc.; pulp mill captured CO2 for use by adjacent Serres Toundra greenhouse facility
+ Government of Canada has begun a ‘green renovation’ process for the Arthur Meighen Building in Toronto; budgeted at $277.0 million the retrofit should reduce emissions 80% as part of the Zero Carbon Building Pilot Program
+ SNC-Lavalin Group Inc. facing calls to reconsider its pending sale of 10% interest in Highway 407 to OMERS
CLIMATE CHANGE + LEED + RENEWABLE ENERGY
+ Government of Canada has begun a ‘green renovation’ process for the Arthur Meighen Building in Toronto; budgeted at $277.0 million the retrofit should reduce emissions 80% as part of the Zero Carbon Building Pilot Program
+ Government of Canada is providing $6.7 million funding for Eavor Technologies Inc. – unique closed-loop geothermal system …
+ Alberta government watch: Premier-Designate Jason Kenny and his cabinet will be sworn in today; final tallies are in from the election – 45 of 87 MLA’s are new, 26 women/61 men; 71% voter turnout, up from 57% four years ago. The throne speech and commencement of the legislature sitting is expected in the third week of May
+ Arrow Exploration Corp. agreed to sell a portfolio of non-core Columbian assets for US$5.0 million
+ Bank of Canada led its interest rate at 1.75%; plans for an increase shelved due to slowing economy
+ Black Diamond Group Ltd. won a $20.0 million rental contract to provide portable housing (1,584 beds) for crews rebuilding Paradise, California reconstruction phase
+ rig counts – U.S.: down 21 to 991 this week; Canada down 3 to 63 this week; full breakdown
+ Solium Capital Inc. got regulatory approval for their Morgan Stanley takeover set to close May 1
+ Southern Energy Corp. agreed to acquire a portfolio of assets of Mississippi for US$16.5 million
+ WestJet initiated Dreamliner service - Calgary to Gatwick; also started daily non-stop service, Calgary to Portland
THIS WEEK IN FINANCINGS
- proposed & closed
+ CAP REIT closed $345.0 million equity financing
+ Capital Power Corporation is on the market to raise $130.0 in debt & equity
+ Cargojet Inc. closed $15.0 million overallotment of its recent debt financing
+ Firm Capital Property Trust closed $26.2 million equity financing
+ Firm Capital Property Trust closed $16.3 million equity financing by private placement
+ Petro-Victory Energy Corp. is on the market to raise $600,000.0 in equity by private placement
+ Questerre Energy Corporation closed $14.8 million equity financing by private placement
+ RECIPE Unlimited (formerly known as Cara Operations Limited) closed $250.0 million sr. secured debt financing
+ Rokstad Holdings Corporation closed $25.0 million debt financing
+ Southern Energy Corp. is on the market to raise $8.0 million by a debt financing
+ Temple Hotels Inc. is on the market to raise $37.5 million in equity by a rights offering
+ Venzee Technologies Inc. closed $2.1 million equity financing by private placement
~
*editor’s note: names companies involved in debt financing transactions we report in this section are ALWAYS the borrower; we report ‘fresh raises’ and do not report secondary offerings …
+ Ron Wilson, Pres. @ Best Buy Canada named 2019 Distinguished Canadian Retailer of the Year Award to be presented at this year’s Retailing Awards Gala (Toronto – May 28)
+ Sobeys opened their first discount grocery store in Western Canada; FreshCo store opened in Mission, BC; plan for 11 more this year; most will be re-branding redundant Safeway or Sobey’s stores
INTERESTING TRENDS IN INDUSTRIAL REAL ESTATE
+ WestJet opened its new maintenance hangar at the Calgary International Airport to handle maintenance of its new 787 Dreamliner - $50.0 million/125,000 sq. ft. hangar; facility can hold one 787-9 Dreamline or four 737s
