Desjardins Group has acquired a majority stake in two industrial buildings in Avenue 31’s National Capital Business Park in Ottawa, according to multiple media reports.

The business park is located in Ottawa’s east end at Exit 109 on Highway 417 at Hunt Club Road. Desjardins did not issue a formal announcement on the investment, but has acknowledged it publicly.

Montreal-based Desjardins invested in the assets through its DGAM Canadian Private Real Estate Fund (60%) and the Desjardins Group Pension Fund (20%), acquiring 80% altogether at a price of $77 million, while Avenue 31 has retained a 20% interest, the reports state.

Completed in 2022, the two fully occupied buildings comprise a total of 293,547 square feet and  FedEx, Carrousel Packaging, Red Bull, Canteen Canada, Pizza Pizza, Golden Palace, Reliance Home Comfort and Fastfrate Group have weighted average lease terms of seven years, according to one report. =

“At Desjardins Group Pension Plan, we seek real estate investments that combine high‑quality properties, strong fundamentals, and trusted partners,” said Dominic Poulin, who heads the pension plan, in a LinkedIn Post. “Our investment in the National Capital Business Park, in partnership with Avenue 31 and Desjardins Global Asset Management (DGAM) truly reflects this disciplined and long‑term approach.”

Avenue 31 is developing the $400-million business park under multiple phases. The federally owned National Capital Commission owns the underlying land, and Desjardins manages 99-acre parcel under a 49-year ground lease.

The business park has about 1.3 msf available for lease. According to a published report and the company’s website, four buildings have been completed, and the approximately 200,000-square-foot fourth building is about 60% leased.

A published report states that Desjardins has a long-term agreement with Avenue 31, and the fund manager plans to acquire additional stabilized buildings in the business park, with hopes of acquiring a fully leased, 145,000-sf asset this fall.

Poulin said in his LinkedIn post that the Desjardins pension fund is looking forward to building on its strong partnership with DGAM and Avenue 31 on National Capital Business Park.

“Ottawa’s industrial market continues to demonstrate its resilience, and the quality and location of these assets stood out in a highly selective process,” he said.

Pictured: National Capital Business Park in Ottawa.

Image: Avenue 31