(Bloomberg) — A Canadian commercial real estate landlord whose largest tenant is Amazon.com Inc. is marketing its inaugural bond sale.
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RBC Canadian Core Real Estate Fund plans to issue green bonds in the near future, subject to market conditions, according to people familiar with the matter. Proceeds will finance the acquisition of two eligible projects in Vancouver and Calgary, said the people.
Prospects for commercial real estate are in flux as the pandemic drags on, irrevocably altering in-office work patterns and occupancy. The Royal Bank of Canada’s managed fund comprises stakes in 65 assets, with offices accounting for almost 58% of net operating income while the remainder comes from industrial, retail and multifamily properties, according to a presentation sent to investors. Most of the asset’s stakes were acquired from pension fund British Columbia Investment Management Corporation.
Amazon accounts for almost 7% of gross rent generated by these assets, followed by a government agency and PwC Management Services LP with 4.2% and 4.1%, respectively, according to the presentation. Oil companies Arc Resources Ltd., Equinor Canada Ltd and Abu Dhabi National Energy Company are also among the largest tenants.
The bonds which would mature in 2027, will be issued out of Canadian Core Real Estate LP, which is rated A(low) by DBRS Ltd., its seventh-highest investment-grade level. A press officer for RBC’s asset management unit didn’t immediately reply to a request for comment.
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