LaSalle Investment Management has acquired three industrial buildings in the Greater Toronto Area through its core real estate fund in Canada. This logistics portfolio brings the fund’s industrial allocation up to 18.6 per cent, reducing its overall exposure to the office market.

The fully occupied space totals nearly 610,000 square feet of rentable area. Tenants are  mainly investment-grade credit tenants, including a leading global e-commerce and logistics firm, Lear Corporation and Canada’s largest pallet supplier Paramount Pallet.

The largest building is located at 2300 North Park Drive in Brampton, part of the GTA West industrial submarket, which saw its net rent grow by 13 per cent in 2020. This property includes a 40-foot clear height, 42 trailer parking positions, secured yard and LEED design. The remaining two properties are located in the GTA East submarket, at 1652 and 1672 Tricont in Whitby on an infill site.

Newly constructed, the portfolio’s weighted average lease term is 8.8 years. Leases include annual rent escalations of at least 2.5 percent.

“Our conviction in the industrial sector remains strong, and we believe this acquisition will continue to support the strong relative performance of the fund and the sustained interest from multinational and domestic investors,” said LaSalle Canada CEO John McKinlay.