Skyline sells 6 industrial buildings from Cambridge to KingSett | RENX

101 Sheldon Dr. in Cambridge, Ontario is part of a portfolio of light industrial buildings sold by Skyline Commercial REIT to a KingSett Capital fund. (Courtesy of Skyline Commercial REIT)

Skyline Commercial REIT has sold a six-building industrial portfolio in Cambridge, Ont., for $58.2 million, bringing its total disposals since Jan. 21 to more than $355 million.

The 291,000+ square foot portfolio was acquired by KingSett Real Estate Growth LP No. 7. The transaction closed on January 31.

Guelph-based Skyline Commercial REIT has repositioned its industrial portfolio over the past year and completed four significant transactions so far in 2022. However, with most of its non-core assets now sold, this burst of activity coming to an end.

The most recent sale properties are: 15, 101 and 131 Sheldon Dr.; 1177 and 1195 Franklin Boulevard; and 1425 Bishop St. N.

The sale more than halves Skyline’s current holdings in the Cambridge area, just west of Toronto.

“The REIT maintains a strong presence in the City of Cambridge, with three properties totaling 223,583 square feet of industrial space,” REIT Chairman Michael Mackenzie said in the announcement Tuesday afternoon.

Skyline’s repositioned industrial portfolio

In an interview last week with RENX, Mackenzie said the trust was updating its portfolio. The REIT had owned numerous smaller bay multi-tenant properties since its earliest acquisitions in the years after its launch in 2012.

Those properties have now largely all disappeared, in favor of new assets with larger tenants and stronger covenants. There is also a greater focus on logistics, warehousing and distribution, a sector that generates huge demand for light industrial space across Canada.

In recent weeks, Skyline has also sold:

– four properties in the Montreal suburbs of Lachine and Dorval, totaling 402,709 square feet, for KingSett Real Estate Growth LP No. 7 and Candev Immobilia Inc. for $80.13 million;

– 18 small industrial properties in Ottawa, totaling 24 buildings and 692,613 square feet, for Woodbourne Capital Management and Epic Investment Services LP for $154.5 million;

– two industrial properties in the Greater Toronto Area totaling 207,689 square feet for pure industrial for $62.8 million; and

– in 2021, it completed four more divestments in Ontario (in Ayr, London, Mississauga and Windsor), totaling over 597,000 square feet and bringing in gross proceeds of $87.4 million.

Mackenzie had hinted at the sale of Cambridge in the interview with RENX, noting that she had another portfolio under contract. He said it would likely be the last of the major disposals, although the REIT still has a few properties to sell.

“It was a comprehensive strategy that we had and have pretty much completed at this point,” he said last week. “We really changed the complexion of the portfolio.”

About Horizon

Skyline Commercial REIT is a privately owned and managed commercial property portfolio focused on acquiring industrial and logistics properties along major highway and transportation corridors in Canada.

The REIT is distributed as an alternative investment product through Skyline Wealth Management Inc., the REIT’s preferred exempt market dealer.

Skyline Commercial REIT is operated and managed by Skyline Group Of Companies.

Marjorie N. McClure