JLL Acquires Canada’s Northwest Atlantic in Retail Takeover Bid

Source: https://www.bloomberg.com

Jones Lang LaSalle Inc. acquired Northwest Atlantic Inc., a Canadian retail-tenant representation and advisory firm, to feed the growing demand from retailers around the world looking to expand in Canada.

Northwest Atlantic, a closely held company based in Toronto, represents more than 65 retailers including fashion retailer Nordstrom Inc., discount-apparel company Winners and movie-theater operator Cineplex Inc., and has helped leased more than 75 million square feet (7 million square meters) of retail real estate across Canada.

The purchase price wasn’t disclosed. A total of 45 employees across cities including Toronto, Montreal and Vancouver will join JLL Canada’s team, and the acquisition will result in no job cuts, JLL said. It’s the brokerage’s first acquisition of a retail-services company in Canada and the largest one of its kind in the Americas, Naveen Jaggi, president of retail advisory services for JLL Americas, said by phone.

“By joining forces with the Northwest Atlantic team, we’ve now created an opportunity for our clients worldwide to tap into a unified business across the United States and Canada,” Jaggi said in a statement.

The purchase price wasn’t disclosed. A total of 45 employees across cities including Toronto, Montreal and Vancouver will join JLL Canada’s team, and the acquisition will result in no job cuts, JLL said. It’s the brokerage’s first acquisition of a retail-services company in Canada and the largest one of its kind in the Americas, Naveen Jaggi, president of retail advisory services for JLL Americas, said by phone.

“By joining forces with the Northwest Atlantic team, we’ve now created an opportunity for our clients worldwide to tap into a unified business across the United States and Canada,” Jaggi said in a statement.

“Canada’s economy was only slightly impacted by the U.S. recession, and it’s much less volatile,” he said by email. “It experienced less than a year of declining fundamentals post-recession, which kept it safe and stable for retailers and investors. The market’s retail sales are forecast to grow 2.4 percent this year and will see continued, albeit smaller, increases through 2022.”

Revenue from JLL Americas’ retail business has tripled over the past four years, Jaggi said by phone, declining to disclose figures. “I’m very bullish on retail,” he said. “Retail is changing, but people are still consuming, just in different ways.”

With e-commerce affecting every decision from site selection to store configuration and supply-chain logistics, the purchase of Northwest Atlantic significantly widens JLL’s retail-service offerings, said Brett Miller, chief executive officer of JLL Canada.

“With this acquisition we roll into the No. 1 position in terms of retail services right across Canada,” Miller said by phone. “Our goal is to double our business in three years once they join.”

Competitors include CBRE Group Inc. and Cushman & Wakefield.



Categories: Business, Canada, E-commerce, USA

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