ManuLife Buys Fully Leased 147 KSF Suburban Vancouver Office Building
- Aug 26, 2014
By Barbra Murray, Contributing Editor
Manulife Real Estate has added a new asset to its Canadian holdings with the acquisition of the premier office building at 3383 Gilmore Way in Burnaby, B.C., just outside of Vancouver. The fully leased property had been owned and managed by Morguard Investments.
Manulife Real Estate, the real estate arm of Manulife Financial, did not disclose the purchase price for the state-of-the-art asset, which, according to British Columbia records has a current assessed value of approximately $48.3 million.
Developed in 2010 by Discovery Parks, 3383 Gilmore is home to HSBC Technology and Services. The five-story property is also known as Discovery Green, and holds the distinction of being one of only four LEED Platinum office buildings in metropolitan Vancouver.
“The acquisition of 3383 Gilmore Way contributes to the diversification of our Fund portfolio–adding a high quality, income producing office asset in Western Canada,” Kevin Adolphe, President and CEO of Manulife Asset Management Private Markets, noted in a statement. “It is validation of our growth strategy and the significant capital we’ve raised to date for the Manulife Canadian Property Portfolio.”
With the acquisition of 3383 Gilmore, the three-year-old Manulife Canadian Property Portfolio now encompasses 22 office and industrial assets accounting for an aggregate 3.1 million square feet.
Building up a commercial real estate portfolio in Canada, however, is no simple feat–competition is steep. “The outlook for investing in commercial real estate we believe will remain challenging as we see domestic pension funds continuing to increase their allocation to real estate as an asset class,” Manulife Real Estate notes in a second quarter report. “The growing presence of large institutional investors in the commercial real estate market means that many high quality properties will likely remain fully priced, requiring a disciplined approach to valuation going forward.”