Key Takeaways
- • DBRS Morningstar finalized an A (low) rating with Stable trend on Canadian Core Real Estate LP's $250 million Series 1 Senior Unsecured Notes (3.299%, due March 2, 2027), matching the Fund's issuer rating assigned in December 2021.
- • Proceeds from the offering will fund acquisition of two green-certified real estate projects: 745 Thurlow Street in Vancouver and 308 4th Avenue SW (Jamieson Place) in Calgary, consistent with CCRE's green bond framework.
- • The Series 1 Notes are unsecured, rank pari passu with other unsecured and unsubordinated debt, and are junior to all secured indebtedness; they carry an unsecured guarantee from RBC Canadian Core Real Estate Fund, the sole limited partner.
- • The rating reflects DBRS Morningstar's application of real estate industry methodology and explicit consideration of environmental, social, and governance (ESG) risk factors in the credit analysis.
Summary
DBRS Morningstar has finalized its provisional credit rating on Canadian Core Real Estate LP's $250 million Series 1 Senior Unsecured Notes at A (low) with a Stable trend. The notes, bearing a 3.299% coupon, mature on March 2, 2027. This finalized rating is consistent with the Fund's existing A (low) Issuer Rating with Stable trend, which DBRS Morningstar assigned to CCRE on December 17, 2021.
The Series 1 Notes function as direct unsecured obligations of Canadian Core Real Estate LP and rank equally with all other unsecured and unsubordinated indebtedness of the Fund, though they remain subordinate to all secured debt. The notes carry an unsecured guarantee from RBC Canadian Core Real Estate Fund, which serves as the Fund's sole limited partner. This structural positioning provides creditors with clear claim hierarchy within CCRE's capital structure while maintaining alignment with the guarantor's credit profile.
The net proceeds from the $250 million offering will support the acquisition of two properties designated as eligible green projects under CCRE's green bond framework. These acquisitions include a property located at 745 Thurlow Street in Vancouver and another at 308 4th Avenue SW (Jamieson Place) in Calgary. The green project designation indicates both properties meet sustainability standards and contribute to CCRE's ESG investment objectives.
DBRS Morningstar's rating analysis applies the agency's real estate industry methodology and incorporates environmental, social, and governance risk factors into the credit assessment. The stable trend suggests the rating agency views the Fund's credit profile and ability to service obligations as stable under current conditions, supported by the underlying real estate asset base and the guarantor backing.
The Series 1 Notes function as direct unsecured obligations of Canadian Core Real Estate LP and rank equally with all other unsecured and unsubordinated indebtedness of the Fund, though they remain subordinate to all secured debt. The notes carry an unsecured guarantee from RBC Canadian Core Real Estate Fund, which serves as the Fund's sole limited partner. This structural positioning provides creditors with clear claim hierarchy within CCRE's capital structure while maintaining alignment with the guarantor's credit profile.
The net proceeds from the $250 million offering will support the acquisition of two properties designated as eligible green projects under CCRE's green bond framework. These acquisitions include a property located at 745 Thurlow Street in Vancouver and another at 308 4th Avenue SW (Jamieson Place) in Calgary. The green project designation indicates both properties meet sustainability standards and contribute to CCRE's ESG investment objectives.
DBRS Morningstar's rating analysis applies the agency's real estate industry methodology and incorporates environmental, social, and governance risk factors into the credit assessment. The stable trend suggests the rating agency views the Fund's credit profile and ability to service obligations as stable under current conditions, supported by the underlying real estate asset base and the guarantor backing.
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