Rona Portfolio

Various locations

Description

The Portfolio comprises four assets totaling approximately 434,235 SF of leasable area, fully leased to RONA Inc., one of Canada’s premier home improvement retailers with approximately 450 corporate and affiliate locations spanning 10 provinces. Each of the stores is highly entrenched in its respective market, with an average store tenure of 23 years. Since 2023, RONA has pursued an aggressive brand consolidation strategy to establish a unified national presence across Canada. This initiative has been driven by Sycamore Partners’ 2023 acquisition of Lowe’s Canadian operations, providing RONA with strong financial backing, significant resources, and a proven track record of streamlining operations and optimizing inefficiencies to drive performance. Sycamore Partners is a retail-focused private equity firm specializing in consumer and distribution businesses, with experience investing in and repositioning brands such as Staples and Talbots. This brand unification effort represents a significant capital investment in the tenant’s long-term Canadian market presence.

This Portfolio offers buyers secure and growing cash flows supported by an attractive WALT of 7.7 years, at a basis significantly below replacement cost. The four assets in this Ontario and Winnipeg-based Portfolio include: 1880 Innes Road, Ottawa, ON; 730 Ottawa Street S, Kitchener, ON; 775 Panet Road, Winnipeg, MB; and 1333 Sargent Avenue, Winnipeg, MB. Each Property has contractual rental escalations throughout its lease term. The Properties are strategically located within their respective communities, situated along major arterial thoroughfares providing seamless accessibility and high traffic flow. Distributed across well-established and/or growing markets, the Portfolio draws from trade areas extending well beyond their local communities.

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Attributes

Building area gross

434,235 sf

Land area gross

20 sf

Rona Portfolio (4 Properties)

Media

Investment highlights

Strong Cashflow

The Portfolio is 100% leased with a weighted average lease term of 7.7 years and contractual escalations on each asset, providing prospective investors with a secure income stream at below market rents. Additionally, three of the four sites offer potential pad development upside, creating opportunities for incremental revenue growth.

Strategically Located

All four assets are strategically positioned within prominent retail nodes along major thoroughfares in their respective markets, offering outstanding consumer traffic, accessibility, and connectivity to the surrounding regions.

Triple Net, Self-Managed Properties

This Portfolio provides investors with a rare opportunity to acquire a fully leased collection of well-performing, self managed RONA+ assets on triple net leases.

Well Designed Assets

The Properties are well-designed with ample parking, premium visibility, and multiple access points. All four Properties within the Portfolio have been converted to the covenant’s RONA+ banner, serving as frequent destinations for everyday consumers, as well as “PRO” customers from the surrounding communities.

Best in Class Covenant

RONA Inc., one of Canada’s leading home improvement and construction products and services providers, has been a longstanding tenant at each of the sites for over 20 years. The privately held company operates approximately 450 locations across the country with over 26,000 employees.

Land Transfer Efficiency

The Winnipeg assets are each held in separate bare trust corporations and a purchaser will have the option of acquiring these for tax efficiency.