The owner of a Laval shop hit by a more than 200% rent increase denounces the practices he calls “abusive” by Pure Industrial, a co-owner of Blackstone Property, and Ivanhoé Cambridge, the real estate arm of Caisse de depot et Placement, are you looking at Québec (CDPQ)
“I don’t mind that the market has changed and the demand for commercial space has increased due to e-commerce. But there are still many limitations, says Edgar Belleau, CEO of Instacable Computer Cables. They don’t realize the damage they’re doing. »
The manufacturer of cable harnesses and fiber optic cables, intended for the production of electronic devices for the communication and security industries, has been located on the same 11,000 square meter industrial site for 18 years.
As in the past, he therefore expects to extend his commercial lease before the end of next July. It was, however, without suspecting the increasing price reserved for him by the new owners of the building he inhabits, previously owned by Cominar.
A triple rent
Beginning in July, the JA Bombardier Street building’s rental price will fall from $7.50 per square foot to $23.50 per square foot, three times the rate over the past three years. And that’s not all ; According to Pure’s proposal, consulted by Le Journal, this base rate will increase to $24.68 from July 2024 and to $25.91 the following year, ie from July 2025.
“And don’t bother negotiating with them,” says Mr. Belleau. take it or leave it They agree to pay triple price or leave, even after almost 20 years. This is a short-sighted vision that will hurt many SMEs. I don’t think Cominar would have done that. »
Cominar’s industrial portfolio — no fewer than 190 buildings — was acquired by Blackstone a little less than a year ago as part of a larger transaction led by real estate company Canderel for an amount of 5.7 billion ($B). According to Les Affaires, Pure now owns 41 million square feet in Quebec, or 60% more than it did before it acquired Cominar.
radio silence
Michael Racine, appointed last March, vice president of leasing at Pure, is precisely a defector from Cominar. Never mind, despite our numerous inquiries, neither Mr. Racine nor the management of Pure Industrial in Toronto have agreed to answer our questions.
The same silence of Ivanhoé Cambridge, but a subsidiary of the Caisse de depot et Placement du Québec. Management has refused to tell us what percentage of its stake it holds and which building in its industrial/logistics portfolio is currently managed by this company. In 2018, when it was bought with Blackstone for $3.8 billion, Ivanhoé owned 38% of the company.
However, for Mr. Belleau, like many others, the chips are down. Since he cannot pay the increase imposed on him, he has to prepare his move.
–With the collaboration of Francis Halin