Portfolio - Case Studies

C2C Industrial Properties Inc

The Opportunity

 
In 2009, Strathallen recognized that there was limited availability for the public investment market in the Canadian industrial property sector. At the time, there was one Canadian Industrial REIT with a market cap of $250 million, compared to the $16 billion of combined market cap in USA Industrial REITS. Realizing that there was strong demand for a public Industrial vehicle, Strathallen identified an underperforming “capital pool company” which provided access to public capital.
 

Executing the Value Add Portfolio Plan

 
Strathallen created C2C Industrial with the first equity raise completed in May 2011.  Within two years, following multiple public equity raises and an unsecured convertible debenture issuance, the portfolio consisted of 26 industrial properties in four major Canadian markets totaling 2,530,000 SF. The portfolio was internally managed as a separate business unit. In early 2013 Strathallen recognized a change in the flows of public capital for this sector and recognized an opportune time to tap active M&A market conditions.  A profitable exit strategy was developed and executed by management. 
 

The Result

 
The result was the sale of C2C Industrial in 2013 to Dundee Industrial REIT for over $225 million. After successfully accessing the public markets for multiple equity raises and managing the company through significant growth, the exit to Dundee Industrial REIT resulted in an average return of 15% for the initial investors.