Articles from Connect CRE

The Canada Mortgage and Housing Corporation (CMHC) reports that Canada must double its home construction efforts, building 430,000 to 480,000 homes annually until 2035, to restore housing affordability. Major cities like Montreal and Toronto face significant housing gaps, with Toronto needing a 70% increase in homebuilding over the next decade. The national strategy requires a modernized workforce, more private investment, fewer regulations, and advancements in construction technology to achieve these goals.

Peninsula Capital has acquired a 959-unit single-family rental housing portfolio in the U.S. Midwest, expanding its U.S. presence significantly. This acquisition supports their strategy of scaling up its single-family rental platform. The properties are located in cities like Kansas City, St. Louis, Indianapolis, and Columbus, benefiting from affordable housing, job stability, and high rental demand. The newly acquired portfolio includes two-, three-, and four-bedroom units situated in well-established neighborhoods.

Davie has announced its plan to acquire two shipyards in Texas from Gulf Copper & Manufacturing, with intentions to invest US$1 billion in upgrading them. This acquisition will support U.S. federal priorities and is expected to create roughly 4,000 jobs. The deal, marking Davie's expansion into the U.S., is anticipated to close by summer 2025, following regulatory approvals. The move will strengthen Davie's role in the U.S. shipbuilding industry and address the Arctic capability gap.

Residential rents in Canada decreased by 3.3% year-over-year in May from a record high as per the National Rent Report by Rentals.ca and Urbanation. However, rental prices are still significantly higher than two and three years ago, having increased by 5.7% and 12.6% respectively. Over the past five years, average asking rents have risen by 4.1% annually, indicating worsening rental affordability since the COVID-19 pandemic.

WSP Global has announced its acquisition of Ricardo, a UK-based engineering and strategic consultancy firm, for approximately $670 million. This acquisition aims to bolster WSP’s presence in global markets, particularly in the UK, Australia, and the Netherlands, and aligns with its strategic growth plans. Ricardo operates in 21 countries with a workforce of 2,700, covering industries such as rail, energy, and environmental policy. The deal is expected to finalize by the fourth quarter of 2025, pending necessary approvals.

Brookfield Asset Management plans to invest US$10 billion in developing an artificial-intelligence data-centre project in Sweden, marking one of its largest European AI ventures. The facility in Strängnäs will expand its capacity from 300MW to 750MW and is expected to create over 3,000 jobs, including 2,000 construction-related positions. This project is part of Sweden's national AI strategy and aims to build critical infrastructure beyond data centres. Brookfield is a significant investor in the AI value chain, having recently announced a large AI infrastructure initiative in France.

In April, housing starts in Canada's largest markets reached a record high, with a 17% increase from the previous year. Although Montreal saw a 64% surge in multi-unit housing starts, provinces like Ontario and British Columbia experienced declines. Kevin Hughes from the Canada Mortgage and Housing Corporation noted that economic uncertainty could impact the housing market's supply and demand. Housing starts were particularly robust in Quebec and the Prairie provinces.

Brookfield Infrastructure Partners is considering investments in U.S. manufacturing projects, particularly in critical industries like semiconductors and solar panels, in response to U.S. tariff plans. Although opportunities also exist in Europe and Asia, the U.S. remains the primary focus due to its robust investment environment. Despite exposure to global trade through its transportation networks, Brookfield is confident that long-term contracts minimize risks. The firm also sees possibilities in global energy diversification, particularly in LNG opportunities.

The Public Sector Pension Investment Board (PSP) has acquired full ownership of The Wharf, a notable mixed-use development in Washington D.C., for approximately $1.8 billion. PSP, previously a financial stakeholder, now fully controls the 3.5-million-square-foot project and plans to enhance its significance in the community. This acquisition follows PSP's decision to purchase the remaining stake from Madison Marquette, citing strong expected returns. Madison Marquette, which co-developed The Wharf, proudly acknowledged the project's successful transformation over 15 years.