Month: December 2017

29 Dec

Réseau Sélection retirement developments win global awards

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Posted by: James Moysey

Two retirement homes by Quebec developer Réseau Sélection have been named the best in seniors housing in a global awards program.

The Réseau Sélection Signature Vaudreuil is one of two retirement homes by the Quebec-based firm to win global awards for seniors residences.

The Réseau Sélection Vaudreuil Signature is one of two new retirement developments by the Quebec-based firm to win global awards for seniors residences. (Rendering courtesy Réseau Sélection)

The company won the Most Outstanding Senior Rental Housing of 2017 award for the recently completed Sélection Vaudreuil Signature at the 2017 edition of The Globals – Over 50s Housing Healthcare event in November in London.

It also won Most Outstanding Vertical Retirement Living Project Award for its Sélection Panorama Prestigecomplex in Laval, now under construction. Slated for completion in October 2018, the 30-storey building will be the tallest seniors housing project in Canada.

“Surpassed the expectations”

“We’ve surpassed the expectations of people when they think of what a retirement home could be,” says Patrick Préville, director of public relations and communications at Réseau Sélection. The awards will be used for marketing purposes for the two properties, he says.

Réseau Sélection has developed and built nearly 40 retirement complexes in Quebec with about 10,000 units during the last 30 years.

Préville says the company’s first Canadian seniors housing project outside Quebec should be announced in 2018 and will be located in Ontario.

Founded in 1998, the seniors housing awards were chosen by an independent panel of 20 journalists who cover the health-care, residential services, medical tourism and technology sectors. Seniors housing developers from 15 countries participated in the event.

Selection Vaudreuil 40 per cent leased

Esmonde Crawley, one of the awards show judges and an expert in homes for seniors, noted in a statement the awards signify Canadian retirement homes “will clearly be attracting attention during the next few years.”

“It’s right on our expectations,” Préville says, noting leasing for Réseau Sélection rental properties typically begins only a few months before construction ends.

Units range from 500 to 1,000 square feet and rents range from $1,300 to $2,300 monthly.

The 12-storey building is the tallest in the area and offers views as far away as Mount Royal. It’s close to a number of stores and is designated as a transit-oriented development (TOD) as the Dorion train station, which serves downtown Montreal, is only a few minutes walk away.

Sélection Vaudreuil is geared to active retirees with renters’ average age to date about 75, “much lower than what you find elsewhere.”

Multi-generational development

It marks the first phase of a planned three-phase, multi-generational project that will have 350 units. The second phase will be geared to families and the third to care.

“You can spend your entire life at Sélection Vaudreuil,” Préville notes.

The thinking is that retirement is a stage of life in which people can continue to grow, according to Réal Bouclin, Réseau Sélection’s president and CEO. “Today, different generations want to mingle with each other.”

Sélection Vaudreuil puts the accent on active living, Préville says. There is plenty of natural lighting, a two-storey lobby that serves as the base for an “elegant” common area, and a courtyard in the rear “that makes you feel like relaxing.”

The complex includes what Réseau Sélection calls its “healthyID” lifestyle program that focuses on prevention and awareness to encourage seniors to adopt healthy daily habits. Professionals ranging from physiotherapists to kinesiologists are on hand, as well as a full-time nurse, part-time doctor and massage therapist. There is also an exercise room and a pool “you’ve got to see to believe,” Préville says.

Panorama under construction

Now half-completed, the $100-million Sélection Panorama in the Sainte-Dorothée neighbourhood of Laval is Réseau Sélection’s flagship project.

It will have 286 units comprising 48 condos (from $275,000 to about $650,000), 206 rental apartments (from $1,245 to $4,000 monthly) and 32 care units designed for couples in which one partner has health problems and needs daily care. (For more information, see Réseau Sélection building Canada’s tallest seniors tower)

The project is attracting former Montrealers who live abroad but want to return home in retirement, Préville says.

14 Dec

Renters rule in Montreal, spending an average $835 monthly on housing

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Posted by: James Moysey

Montreal is for renters.

Almost two-thirds of people who live in the city rent rather than own their homes, spending an average of $835 monthly on housing, including rent, electricity and heat, according to a new analysis of 2016 census data collected by Statistics Canada.

Housing costs are highest in Outremont — $1,269. But Westmount homeowners spend the most on housing: $2,304, including mortgage, real-estate taxes, condo fees, electricity and heating.

Here are more statistics from the analysis by the city of Montreal’s economic-development office:

Monthly housing costs

$835: Average spending on housing, including rent, electricity and heat, in the city of Montreal. The average apartment in Montreal has 4.5 rooms, which normally means two bedrooms, a kitchen, a living room and a bathroom.

8: Boroughs in Montreal where average housing costs are lower than $800.

$742: Average housing cost in Villeray–Saint-Michel–Parc-Extension borough. Lowest in the city.

4: Boroughs where average spending on housing is more than $900.

$1,269: Average housing cost in Outremont borough. Highest in city.

$1,126: Average housing cost in demerged suburbs.

$1,859: Average housing spending in Baie-d’Urfé. Highest on Montreal Island.

$1,366: Average spending on housing by homeowners on Montreal Island, including mortgage, real-estate taxes, condo fees, electricity and heating.

$2,304: Average spending on housing by homeowners in Westmount. Highest on Montreal Island.

Tenants vs. owners

63%: Montreal households that rent rather than own their homes.

73%: Côte-des-Neiges–Notre-Dame-de-Grâce households that are renters. Highest percentage in the city.

32%: Households in demerged suburbs that rent rather than own homes.

6%: Kirkland households that rent. Lowest percentage on Montreal Island.

Spending on housing

37%: Among renting households, percentage that spends more than 30 per cent of income on housing on Montreal Island.

21%: Among home-owning households in the city of Montreal, percentage who spend more than 30 per cent of income on housing. For Montreal Island as a whole, the percentage is slightly lower — 20 per cent spend more than 30 per cent on housing.

7 Dec

No shortage of tenants for new industrial space

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Posted by: James Moysey

Just east of Montreal’s Pierre Elliott Trudeau International Airport, real estate company Bentall Kennedy is building its first speculative industrial project in the city in years. The 216,000-square-foot facility isn’t scheduled to open until next summer, but with Montreal’s industrial market undersupplied in the midst of an economic boom, potential tenants are already lining up to occupy the space.

“We’ve had a lot of traction on it,” said Roberto Giglio, vice-president of leasing for Bentall Kennedy’s Quebec division. “This is one of these buildings that we feel is going to be leased even before we complete it.”

Speculative building traditionally plays a far smaller part in Montreal’s industrial real estate market than in cities such as Toronto, Vancouver or Calgary. But with the third quarter of 2017 seeing 15-year-low availability rates, and demand booming from the logistics and aerospace sectors, Montreal landlords are beginning to develop their remaining parcels of land on spec – “a trend unseen in many years,” according to CBRE Group Inc.’s third-quarter research.

“It’s clearly a landlord’s market,” said Avi Krispine, managing director for CBRE’s Quebec operations. Companies “used to be able to take four, five, six months to decide whether they’re going to go ahead with their project or not, in terms of leasing. Today … good luck if you have a couple of weeks.”

Across the country, industrial continues to be one of the best performing commercial real-estate asset classes. The national average net asking rental rate was up 7.2 per cent year-over-year in the third quarter, and availability across the county reached a 16-year low of 4.3 per cent.

 Toronto and Vancouver continue to lead the country in terms of low vacancy, at 2.3 and 2.6 per cent, respectively. But Montreal’s market is tightening, with almost 2.2 million square feet of absorption in the third quarter alone – more than Vancouver and almost as much as Toronto.

In fact, Montreal and Calgary saw almost half of Canada’s net absorption of industrial real estate in the third quarter.

In Montreal, this was led by large aerospace and logistics leases by companies such as Avior Integrated Products Inc. and Syncreon International Group. Smaller companies are likewise demanding space, as business confidence in the province’s economy continues to soar.

At the same time, available product, especially on crowded Montreal Island, isn’t keeping pace with demand.

“On the whole island of Montreal, there are five spaces of 100,000 feet or more,” said Mr. Giglio. “The vacancy rate for buildings over 24-foot [clearance height] is something like 2.5 per cent, and that’s in the entire Greater Montreal.”

Adding to this is a decline in older industrial stock.

With Montreal leading North America in terms of growth in technology jobs – 18 per cent over the past year, according to CBRE – tech companies are transforming high-ceilinged, exposed-brick industrial space into offices, said Mr. Krispine.

A different scenario is playing out in Calgary, the other standout performer in the third quarter (beyond the usual suspects, Vancouver and Toronto).

At 8.5 per cent, industrial vacancy remains high in Calgary, three years after the oil price drop sent Alberta’s economy reeling. But things are beginning to look up, with nearly 1.2 million feet of space being absorbed in the third quarter, and speculative development is likewise returning to the market.

Bentall Kennedy, in partnership with Highfield Development, is developing Calgary’s first industrial building on spec since 2015. The 420,000-square-foot building, with 36-foot clearance height, will open next summer in Balzac, an area just outside Calgary that’s home to a number of major distribution centres for companies such as Wal-Mart and Sobeys. Amazon also recently announced a 600,000-square-foot fulfillment centre in the area.

“The fact that we were able to sell such a substantial, in some respects risky, development really speaks to what the insiders in this market already know, which is we’re going to be out of supply very quickly,” said Iain Ferguson, executive vice-president for industrial and logistics at CBRE Canada.

 Demand for Calgary’s industrial space is being driven partly by a return of capital expenditure to the Alberta oil patch and associated investment in manufacturing. More than this, however, is a continuing effort by companies to consolidate their Western Canadian distribution networks, treating Calgary as a kind of “inland port,” said Mr. Ferguson.

With Amazon and other e-commerce giants changing consumer expectations, companies are having to raise their logistics games. That means increased demand for large, high-tech industrial buildings in transportation hubs like Calgary.

“It’s going to be very expensive for everybody to chase Amazon down the rabbit hole,” said Mr. Ferguson.

“In a lot of cases, [competitors will need] bigger warehouses, more investment in SAP systems and infrastructure and material handling. It’s definitely a take-a-deep-breath moment for a lot of people in the market.”

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4 Dec

Réseau Sélection Strengthens its Presence in Greater Montréal Following the Acquisition of Three Retirement Homes

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Posted by: James Moysey

LAVAL, QCDec. 1, 2017 /CNW Telbec/ – Réseau Sélection announced today that is has acquired the Cherbourg I and Cherbourg II in Brossard and Le Graham in the Town of Mount Royal, three retirement homes previously owned by Prével Retraite and the Fonds immobilier de solidarité FTQ. This transaction brings the number of Réseau Sélection residences in operation or under construction to more than 40 and reinforces its presence in Greater Montréal.

“This transaction is important to us because it brings the number to more than 40 residences as we already are the leading player in Canada in the private sector. This being said, year after year, we maintain an excellent satisfaction rate of 95% from our clients. And we are very proud of it! As a living environment creator, our priority is the satisfaction and the well-being of our clients and our employees”, said Réal Bouclin, founding President and Chief Executive Officer of Réseau Sélection.

Réseau Sélection will welcome some 1,000 new residents who live in the 710 apartments in the three residences into its family as well as one hundred employees.

“Réseau Sélection has an excellent reputation for being focused on customer satisfaction. We believe that residents and employees in these three residences will continue to have a positive experience in their living and working environments” said Jonathan Sigler, Prével’s co-President. “The previous transaction we concluded with Cambridge in 2013 went well and gave us confidence for this current deal”, concluded Normand Bélanger, CEO of Fonds immobilier de solidarité FTQ.

“It is with great pleasure that I welcome our new colleagues and residents in the Réseau Sélection’s family”, said Réal Bouclin in conclusion.

Cherbourg I and II
The Cherbourg I and II, which are located on the banks of the majestic St. Lawrence River, offer an ideal and inspiring lifestyle for active retirees. The common areas – indoor pool, spa, sauna, exercise room, billiard room, cinema, library, dining room and bistro, outdoor gardens, walking trails and shuffle board – were designed to promote residents’ health and well-being. Residents also have access to a hair salon, convenience store, indoor parking and a pharmacy.

Le Graham
Le Graham, which is located in the renowned Town of Mount Royal, is a luxurious complex that has everything to enjoy, starting with a gourmet restaurant that food enthusiasts will love. Its proximity to local services enables Le Grahamresidents to remain active and enjoy their surroundings. Common areas and facilities include a large indoor pool, fitness center, health center, beauty salon, event room, café-bistro, living room with fireplace and library, outdoor terraces and a cinema.

Five-year plan 2015-2020
“With this acquisition, we are closing the loop with Prével which began when we acquired Le Cambridge in 2013,” said Richard Nadeau, Réseau Sélection’s Senior Vice-President and Chief Financial Officer, who led the transaction. “The addition of these three new retirement homes is a continuation of our $2 billion, five-year investment plan that we announced in 2015, for which we have already committed more than half of our commitment.”

About Réseau Sélection
Réseau Sélection has been developing and managing residential projects for over 30 years. A pioneer in the field of retirement communities, today Réseau Sélection is the leading private player in this sector in Canada. Its sense of innovation earned them to receive international recognition with two Global Awards (2017) for Sélection Vaudreuil and Sélection Panorama. The company has a unique vertically-integrated structure, which facilitates both geographical and product diversification. This is the inspiration behind the creation of REZ Real Estate, a division dedicated to multi-residential and multi-generational projects, and to the development of integrated living environments that respond to the diversity of today’s families. In addition to 41 retirement homes, already operating or under construction, the company has announced more than $500 million in investments for its REZ Real Estate division over the next three years. Réseau Sélection has close to 4,500 employees dedicated to serving its clients, 96% of whom would recommend Réseau Sélection to their friends and family.

For images:

SOURCE Réseau Sélection

For further information: France Gaignard, PING Communication, 514-616-7705

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