Manna Industrial Fund successfully acquires most industrial logistics real estate projects
Manna Industrial Real Estate Fund recently successfully acquired a high-quality industrial logistics real estate project located in the Greater Toronto Area, and held a grand celebration ceremony on May 20th. Nearly 70 political, business, and community figures, along with investors, witnessed another milestone in Manna's development.
Hardeep Singh Grewal, Parliamentary Assistant to the Ontario Minister of Transportation and Brampton East Member of Parliament; Benton City Councilor Rod Power; Sun Zhifeng, President of the China Real Estate Investment Association, Lawyer Jiang Banggu from the Honor Society, and Chen Hong, Secretary General; Niu Jihong, Vice Chairman of Zhongguancun Hundred Person Angel Investment Alliance and President of Zhongguancun Hundred Person Angel Investment Alliance Canada Branch; Lu Hongmin, President of the Ottawa Chinese Association Federation in Canada; Dr. Wang Hongwei, CEO of Landlord Network; James Wang, President of New Power Media Group; Cui Jiantian, President of Jiantian Financial (Family Office), and others were present to congratulate.
The guest of honor raised a toast to celebrate the successful acquisition of Manna Industrial Real Estate Fund.
The pouring rain that morning did not dampen the enthusiasm of the guests, who braved the rain and arrived as scheduled. Lu Hongmin, the president of the Ottawa Chinese Association Federation, drove 5 hours from the capital Ottawa to the scene. Fortunately, the weather was good, and before the celebration ceremony began, the rain stopped and the weather was clear.
Nancy Wei, co-founder and director of Manna Industrial Real Estate Fund, delivered a speech at the ceremony, expressing gratitude once again on behalf of Manna Industrial Real Estate Fund for the trust and support of its partners, investment institutions, community leaders, and especially the hundreds of investors who have traveled together.
Wei Yuanhong pointed out that with the rapid development of e-commerce, scarce industrial land resources in core areas, rising reset costs, and slow application processes, it is difficult to find a warehouse for supply chain logistics industrial real estate in Canada's core regions, and transaction prices and rental rents continue to soar. Manna Industrial Real Estate Fund emerged in response to the trend of the times, aiming to address the pain points of investment in supply chain logistics and high interest rates during economic downturns. This is also to celebrate the establishment of the GM Supply Chain Logistics and Real Estate Solutions Center in Brampton, and to address the urgent needs of more businesses
Ontario Governor Ford specially sent a congratulatory letter for this celebration event, extending a warm welcome and sincere greetings to all the guests attending the celebration.
Connecting markets and ensuring the flow of raw materials, supplies, and consumer goods is crucial for the prosperity and quality of life of this great province. In the past few years, the COVID-19 pandemic has disrupted the global supply chain, and now we face the challenge of restoring our systems to normal Governor Ford stated in his congratulatory letter, "Our government will continue to work with our industry partners to ensure that we have the capacity and infrastructure needed to support the growth of the entire province
Governor Ford emphasized that this event "sends a signal to the world that Ontario is open to business and employment." He wished Manna Industrial Real Estate Fund success in its acquisition and greater achievements in the future.
Ontario Governor Ford specially sent a congratulatory letter for this celebration event, extending a warm welcome and sincere greetings to all the guests attending the celebration.
Connecting markets and ensuring the flow of raw materials, supplies, and consumer goods is crucial for the prosperity and quality of life of this great province. In the past few years, the COVID-19 pandemic has disrupted the global supply chain, and now we face the challenge of restoring our systems to normal Governor Ford stated in his congratulatory letter, "Our government will continue to work with our industry partners to ensure that we have the capacity and infrastructure needed to support the growth of the entire province
Governor Ford emphasized that this event "sends a signal to the world that Ontario is open to business and employment." He wished Manna Industrial Real Estate Fund success in its acquisition and greater achievements in the future.
Hardeep Singh Grewal, Parliamentary Assistant to Ontario's Minister of Transportation and Member of Parliament for the Eastern District of Benton, on behalf of Governor Ford and the Provincial Council Caucus, sincerely thanks Manna Industrial Real Estate Fund for investing in the Brampton area and contributing to Ontario's economy, supporting business and employment growth in the province. Thank you very much for your investment, and sincerely thank you for creating more high paying jobs for the people of Binton
Hardeep Singh Grewal, Member of Parliament for the Eastern District of Binghamton.
Hardeep pointed out that Brampton has the location advantage of having the necessary labor force and transportation facilities for supply chain logistics.
Our median labor force is around 30 years old, "Hardeep said. The young and dynamic workforce here provides strong support for businesses like BLANCO that have settled in Brampton, helping them thrive and succeed. I think this may be one of the main reasons why you chose Binghamton
As the Parliamentary Assistant to the Ontario Minister of Transportation, Hardeep is very proud and honored with the transportation infrastructure in Binton. "We have been committed to expanding our road network, expanding highways, including Highway 410 and other highway projects along Highway 401, as well as our future Highway 413 project. We hope these measures can help you transport goods faster in terms of logistics solutions
Provincial Councilor Hardeep Singh Grewal presented a thank-you note and souvenir to Manna.
Binghamton City Councilor Rod Power arrived at the scene early that day to gain a detailed understanding of the reasons and needs for Manna Industrial Real Estate Fund's investment in the local area.
In his speech, Rod warmly welcomed Manna Industrial Real Estate Fund's decision to invest locally on behalf of Brampton Mayor Patrick Brown and the city council, and wished all the best and complete success.
Binton has a large logistics and warehousing population, and the multimodal transport system of the Canadian National Railway (CN) is just across the street Rob revealed that the Canadian National Railway (CN) multimodal transport system here is actually the largest multimodal transport shipping area in Canada. Therefore, you have chosen a very ideal location
Benton City Councilor Rod Power
Rob pointed out, 'When you come out of the airport, you will see a huge sign that says' All roads lead to Binton.' This sentence means that unless you pass through Binton, it is difficult to walk in Canada. Whether you are going to southern Ontario, crossing the west, or even reaching the Port of Montreal, you must pass through Binton. 'So, you have chosen an amazing place.
Regarding the development prospects of the region, Rob stated that they are undergoing large-scale economic development, which has attracted many businesses to invest in Laidun. When you see people flocking to Binton, you realize that this is a huge opportunity
Benton City Councilor Rod Power takes a photo with Manna's team.
Sun Zhifeng, the chairman who led more than ten core members of the Canada China Real Estate Investment Association to congratulate, warmly welcomed Manna Industrial Real Estate Fund and Genesis Wealth to enter Toronto on behalf of the Canada China Real Estate Investment Association at the ceremony, and also welcomed them to join the Canada China Real Estate Investment Association as council members.
Sun Zhifeng pointed out that the Chamber of Commerce has always supported the development of its members and directors. Two months ago, we established DC Pro specifically for this project. He once again congratulated Manna Industrial Real Estate Fund on the impressive progress made in the Greater Toronto Area in a short period of time.
More than ten core members of the Canada China Real Estate Investment Association attended to congratulate.
Here, we share and witness the success of the entire project, as well as the new starting point of our investment, which is very meaningful for us, "said Lawyer Jiang Bangu of the China Real Estate Investment Association Honor Society in his speech." We gather here with a happy heart and look forward to wonderful things happening. "After three years of the COVID-19 epidemic, we really need to get our business back on track, need more investment, need more business activities, and need more opportunities for people to get together."
Today, we witnessed all of this, and this successful acquisition has provided us with such an opportunity. "Jiang Banggu congratulated Manna, all investors, and all business partners. We start here and will continue to move forward, for many years to come
Sun Zhifeng (right), President of the China Canada Real Estate Investment Association, and Changjiang Banggu, Honorary Member
According to Manna Industrial Real Estate Fund, on Friday, April 28, 2023, the fund, along with several other co investors/institutions, successfully acquired an institutional level industrial real estate asset package located in Brampton, Greater Toronto Area. The package covers an area of 139759 square feet and features two adjacent modern buildings built in 1999. It is a Class A high-quality logistics asset in Canada, with a beautiful appearance, ample parking spaces, and an attractive coverage rate of 49%.
This acquisition is considered a rare investment opportunity, with five highlights including:
01. Located in the most "essential" area of Canada's supply chain logistics
The Greater Toronto Area (GTA) industrial real estate market is one of the strongest real estate markets in North America, while Brampton, located in the majority of the GTA West, is considered the best performing sub market. The project is located in the Toronto International Business Park, with a prime geographical location and convenient transportation, making it a mature distribution and logistics node; Near highways 407, 410, and 427, CN's railway freight yard (providing logistics and transportation services to Canada and the United States), and Toronto Pearson International Airport.
02. The acquisition price is 15% -25% lower than the market price
The total price of this acquisition is over 44 million Canadian dollars, equivalent to rentable area, at a price of 318 Canadian dollars per square foot, which is 15-25% lower than the average market transaction price of 350-400 Canadian dollars per square foot in the area over the past few months.
03. National level high-quality tenants with rising business
These two properties are 100% leased to leading North American manufacturing companies Ampak and BLANCO, and serve as important business locations for these two companies.
BLANCO, founded in 1925, is one of the world's largest brands of household kitchen water products/appliances. Serving over 100 countries and 1500 employees. In 2021, the sales revenue reached 483 million euros, with an annual growth rate of 18.5%. This location is its national headquarters for coordinated operations in Canada and also the location of its North American customer service center.
Ampak has been operating since the 1960s and is a leading manufacturing company specializing in producing high-quality bottles, cans, and packaging components. We have over 300 employees in eight locations including Toronto, Montreal, Hawkesbury, Edmonton, Vancouver, Halifax, and Shanghai. The location is its GTA logistics business center.
Currently, the rent is 54% lower than the market average price
The weighted average lease term of the two properties is approximately 3.4 years, with an existing average rent of CAD 9.68 per square foot, significantly lower than 54% of market rent. According to market data, the average rent for industrial logistics properties in the region is 19.10 Canadian dollars per square foot, while the current rent for similar properties in the same year is 22.00 Canadian dollars per square foot. With the continuous growth of the industrial leasing market in the region, there are strong growth opportunities for the renewal of these two leases.
05. The target investment return for this project is 30% -50%
Due to the expiration of the leases for the two properties in the next 1.5 and 4 years, there is significant room for improvement in the leases. The increase in price and rent provides sufficient safety margins and clear potential for significant growth in the investment of this industrial real estate portfolio.
It is expected that the target investment returns for the two properties of the project will be 30% -50% annually.
This acquisition is also a milestone in the development history of Manna Industrial Real Estate Asset Management Company:
Acquiring institutional level logistics and warehousing real estate from one of Canada's largest insurance asset management companies for the first time;
This marks the first entry of Manna Industrial Real Estate Fund into the Greater Toronto Industrial Market;
After the acquisition, The assets under management (AUM) of Manna Industrial Real Estate Management Company have exceeded CAD 200 million.
Improved the quality and diversification of Manna's industrial real estate investment portfolio.
By acquiring properties owned by large international tenants, Manna Industrial Real Estate Fund aims to further optimize tenant quality and rental stability, effectively combating potential economic downturns and volatility risks in the future.
