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InvestPlus Predicts Increased Attention to the Western Canadian Real Estate Market

InvestPlus REIT sees reinvigorated attention into the western Canadian oil/gas and energy sectors, which could indicate a surge for the western Canada real estate market.

Domenic Mandato, CEO of InvestPlus REIT, said mid-cap sized energy companies in the region are at a point in value that makes them enticing acquisitions for capital companies, wealth companies, and institutions outside of Canada looking into reinvesting into the Canadian market.

“Because of years of just being in a depressed market, the value of these mid-cap companies are at a point where they’re very very attractive,” said Mandato. “Just purely on an asset-based evaluation, it’s a no-brainer for a lot of these companies to get in—that’s one of the reasons.”

Mandato says another area triggering interest into oil sands and energy in Canada is the pipelines, specifically the Trans Mountain Pipeline.

“Finally, we’re starting to see movement on construction compared to last year where it seemed like it never was going to go ahead,” he said. “For these reasons, a lot of money outside of Canada is beginning to look very intensely towards buying up mid-cap sized companies and amalgamating them.”

“These types of conversations that are happening now are indicators that you want to pay close attention to if you want to take advantage of the current market,” he said. “So we know the market is depressed in terms of real-estate, we know that the pipelines are moving ahead, now we know that companies outside of Canada—capital companies, wealth companies, and institutions— are looking into reinvesting into the Canadian market.

Just like the wealth companies outside Canada are keeping an eye on mid-cap sized energy companies, we too are targeting greatly valued properties where cash flow, tenant covenant, and valuations are attractive. We see tremendous value in acquiring these assets today before our window of opportunity diminishes.

To read more on the 2020 forecast of Canadian energy, see Cormark Securities Inc.’s This Is the Year – 20 Reasons Canadian Energy Finally Outperforms

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