Categorized | Investing

Major REIT Focusing on the Expansion of Retail

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One of Canada’s biggest real estate investment trusts, or REIT, is changing its primary focus of investment. Homburg Canada REIT has announced that it is selling off many of its residential real estate properties, as has changed its focus to retail shopping centers in both Quebec and Ontario.

The real estate investment trust sold off forty-two residential properties in recent months, which brought in a net total of thirty-seven million dollars. As part of its retail expansion, Homburg purchased twenty-nine retail centers for more than one hundred and ten million dollars.

Retail properties now make up fifty percent of Homburg Canada’s commercial portfolio following the most recent retail transaction. Their portfolio also consists of office buildings, and industrial sites.

The retail centers owned by Homburg REIT include a number of major Canadian retailers, including Jean Coutu Group, IGA, Metro, and Dollarama.

Homburg REIT opted to sell most of its residential real estate properties due to limited long-term growth. The investment trust now owns roughly four hundred and fifty residential properties, which is almost seventy-five percent less than it did in the recent past.

The Canadian real estate investment trust has made it clear that they will continue with their current trend of expanding on its retail property portfolio instead of its residential real estate portfolio. Experts believe that the move makes sense, as the retail sector is showing more signs of guaranteed greater profits.

Apparently shareholders and investors agree, as Homburg Real Estate Investment Trust’s stock increased with the news of the latest acquisition of retail properties.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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