Key Takeaways
- • DBRS Morningstar finalized an A (low) rating with Stable trend on Canadian Core Real Estate LP's $250 million 3.299% Series 1 Senior Unsecured Notes due March 2, 2027, confirming the issuer's investment-grade credit quality.
- • The notes are direct unsecured obligations of CCRE, rank equally with all unsecured and unsubordinated debt, and are junior to secured indebtedness; they are guaranteed on an unsecured basis by RBC Canadian Core Real Estate Fund, the sole limited partner.
- • Proceeds from the $250 million offering will finance acquisition of two eligible green projects: 745 Thurlow Street in Vancouver and Jamieson Place (308 4th Avenue SW) in Calgary, aligned with CCRE's green bond framework.
- • The A (low) Issuer Rating assigned to CCRE on December 17, 2021 provides the foundational credit assessment supporting the Series 1 Notes rating, indicating stable credit fundamentals in the Canadian real estate sector.
Summary
DBRS Morningstar has finalized its provisional rating on Canadian Core Real Estate LP's Series 1 Senior Unsecured Notes, assigning an A (low) grade with a Stable trend. The $250 million note offering carries a coupon of 3.299% and matures on March 2, 2027. This rating confirmation reflects DBRS Morningstar's assessment that CCRE maintains investment-grade credit quality and stable financial prospects within the Canadian real estate landscape.
The Series 1 Notes constitute direct unsecured obligations of CCRE and hold parity with all other unsecured and unsubordinated indebtedness of the fund. However, they rank subordinate to any secured indebtedness CCRE may carry. The notes benefit from an unsecured guarantee provided by RBC Canadian Core Real Estate Fund, which serves as the sole limited partner of CCRE, enhancing credit protection for noteholders.
The proceeds from this $250 million issuance will support CCRE's acquisition of two real estate assets classified as eligible green projects under the fund's green bond framework. The first property is located at 745 Thurlow Street in Vancouver, while the second is situated at Jamieson Place, 308 4th Avenue SW in Calgary. This deployment aligns with growing institutional demand for ESG-compliant real estate investments and reflects CCRE's commitment to sustainable property acquisition strategies.
DBRS Morningstar's rating assessment incorporates its standard methodology for entities in the real estate industry and considers environmental, social, and governance risk factors within its analytical framework. The finalized A (low) rating builds on the Issuer Rating of A (low) with Stable trend previously assigned to CCRE on December 17, 2021, indicating consistent credit quality evaluation over the rating period.
The Series 1 Notes constitute direct unsecured obligations of CCRE and hold parity with all other unsecured and unsubordinated indebtedness of the fund. However, they rank subordinate to any secured indebtedness CCRE may carry. The notes benefit from an unsecured guarantee provided by RBC Canadian Core Real Estate Fund, which serves as the sole limited partner of CCRE, enhancing credit protection for noteholders.
The proceeds from this $250 million issuance will support CCRE's acquisition of two real estate assets classified as eligible green projects under the fund's green bond framework. The first property is located at 745 Thurlow Street in Vancouver, while the second is situated at Jamieson Place, 308 4th Avenue SW in Calgary. This deployment aligns with growing institutional demand for ESG-compliant real estate investments and reflects CCRE's commitment to sustainable property acquisition strategies.
DBRS Morningstar's rating assessment incorporates its standard methodology for entities in the real estate industry and considers environmental, social, and governance risk factors within its analytical framework. The finalized A (low) rating builds on the Issuer Rating of A (low) with Stable trend previously assigned to CCRE on December 17, 2021, indicating consistent credit quality evaluation over the rating period.
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