Key Takeaways
- • Desjardins' DGAM Canadian Private Real Estate Fund and Desjardins Group Pension Fund acquired an 80% stake in two industrial buildings at Avenue 31's National Capital Business Park in Ottawa for $77 million.
- • The two fully occupied buildings, completed in 2022, comprise 293,547 square feet with 32-foot clearances and house major tenants including FedEx, Red Bull, Pizza Pizza, and Fastfrate Group with weighted average lease terms of seven years.
- • The partnership grants Desjardins majority stakes in additional buildings within the multi-phased business park once those properties stabilize, providing Avenue 31 with institutional capital and liquidity for future development recycling.
- • Richard Dansereau, vice-president and head of real estate investments at DGAM, cited Ottawa as a strategic priority for industrial acquisitions and identified Avenue 31 as the superior developer in that market segment.
- • The National Capital Business Park is strategically located on Crown land at the Highway 417 and Hunt Club Road interchange in Ottawa's east end, positioning it as an institutional-grade industrial asset.
Summary
Desjardins Group has expanded its real estate portfolio through a significant institutional investment in Ottawa's industrial sector. The DGAM Canadian Private Real Estate Fund and the Desjardins Group Pension Fund jointly acquired an 80% stake in two industrial buildings at Avenue 31's National Capital Business Park for $77 million. This transaction marks a strategic pivot for both parties: Desjardins gains exposure to a stabilized, fully leased asset in a key Canadian market, while Avenue 31 secures institutional capital to fund future development phases.
The two buildings, which achieved completion in 2022, total 293,547 square feet with 32-foot clearances—specifications typical of institutional-grade logistics and distribution facilities. Full occupancy is maintained by a diversified tenant roster including FedEx, Red Bull, Carrousel Packaging, Canteen Canada, Pizza Pizza, Golden Palace, Reliance Home Comfort, and Fastfrate Group. The weighted average lease term of seven years provides predictable, medium-term cash flow stability, a critical metric for institutional real estate investors evaluating risk-adjusted returns.
Richard Dansereau, vice-president and head of real estate investments at DGAM, indicated that Ottawa ranked highly on the firm's acquisition priority list, and positioned Avenue 31 as the market's premier industrial developer. The partnership structure contemplates expansion within the 88-acre business park; Desjardins will acquire majority stakes in additional buildings once those properties reach stabilization, allowing for staged capital deployment and phased portfolio growth.
Michel Pilon, president and CEO of Avenue 31, framed the transaction as fulfilling a long-standing strategic objective: securing an institutional partner to provide liquidity and enable capital recycling into future development projects. The National Capital Business Park's location on Crown land at the Highway 417 and Hunt Club Road interchange in Ottawa's east end positions it as an institutional-grade logistics hub with strong accessibility to regional and national distribution networks.
The two buildings, which achieved completion in 2022, total 293,547 square feet with 32-foot clearances—specifications typical of institutional-grade logistics and distribution facilities. Full occupancy is maintained by a diversified tenant roster including FedEx, Red Bull, Carrousel Packaging, Canteen Canada, Pizza Pizza, Golden Palace, Reliance Home Comfort, and Fastfrate Group. The weighted average lease term of seven years provides predictable, medium-term cash flow stability, a critical metric for institutional real estate investors evaluating risk-adjusted returns.
Richard Dansereau, vice-president and head of real estate investments at DGAM, indicated that Ottawa ranked highly on the firm's acquisition priority list, and positioned Avenue 31 as the market's premier industrial developer. The partnership structure contemplates expansion within the 88-acre business park; Desjardins will acquire majority stakes in additional buildings once those properties reach stabilization, allowing for staged capital deployment and phased portfolio growth.
Michel Pilon, president and CEO of Avenue 31, framed the transaction as fulfilling a long-standing strategic objective: securing an institutional partner to provide liquidity and enable capital recycling into future development projects. The National Capital Business Park's location on Crown land at the Highway 417 and Hunt Club Road interchange in Ottawa's east end positions it as an institutional-grade logistics hub with strong accessibility to regional and national distribution networks.
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