Willowbrook Park Shopping Centre Sold for $137 Million
Willowbrook Park Shopping Centre Sold for $137 Million
In a notable transaction within Metro Vancouver's commercial real estate sector, Shato Holdings Ltd. has acquired the Willowbrook Park shopping centre in Langley, British Columbia, for $137 million. This acquisition stands as one of the region's most significant commercial deals in 2024.
Key Takeaways:
Shato Holdings Expands Portfolio with $137M Deal: Shato Holdings Ltd., owned by the Toigo family, has purchased Willowbrook Park shopping centre in Langley, British Columbia, for $137 million, making it one of Metro Vancouver’s largest commercial real estate transactions of 2024.
Large-Scale Retail Property with High Occupancy: The 20.15-acre shopping centre consists of 12 buildings spanning 193,785 sq. ft., fully leased with an impressive net operating income (NOI) of $5.54 million projected for 2025. Major tenants include Safeway (anchor), Scotiabank, RBC, BMO, MEC, Dollar Tree, Pizza Hut, and New Balance.
Strategic Location Adjacent to a Major Mall: The property sits at 6131 200 Street, 6263 200 Street, and 19888 Willowbrook Drive, placing it next to the Willowbrook Shopping Centre, a prime retail destination owned by QuadReal Property Group.
Strong Investment Potential with Rising Valuation: The property was assessed at $93.58 million as of July 1, 2024, but its sale price of $137 million ($707 per square foot) highlights its strategic value and potential for long-term returns.
Retail Market Strength in Langley: This acquisition reinforces Langley’s status as a growing commercial hub, with Willowbrook Park benefiting from strong consumer traffic, high lease occupancy, and a well-established retail presence in the region.
Property Overview
Willowbrook Park is an open-air shopping centre located at 6131 200 Street, 6263 200 Street, and 19888 Willowbrook Drive in Langley. The property encompasses 20.15 acres and comprises 12 buildings, totaling 193,785 square feet of retail space. Constructed in 1988 and 1990, the centre is fully leased, with Safeway serving as the anchor tenant. Other notable tenants include Scotiabank, RBC, BMO, MEC, Dollar Tree, Pizza Hut, and New Balance. According to Colliers, the net operating income (NOI) is projected to be $5,544,393 for 2025.
Transaction Details
Previously owned by Valley Properties Ltd., Willowbrook Park was listed for sale in mid-2024. The sale was brokered by Randy Heed and Stuart Morrison of Colliers, alongside Sheldon Scott and Arjen Heed of Sitings Realty. The transaction, completed in the fourth quarter of 2024, translates to approximately $707 per square foot. BC Assessment valued the three parcels comprising the property at a combined total of $93,583,000 as of July 1, 2024.
Strategic Significance
The shopping centre's strategic location places it directly adjacent to the similarly named Willowbrook Shopping Centre, owned by QuadReal Property Group. This proximity enhances its appeal, given the area's established retail environment and consumer traffic.
About Shato Holdings Ltd.
Shato Holdings Ltd., owned by the Toigo family, is a diversified organization with a longstanding presence in the Metro Vancouver market. The company owns the Western Hockey League's Vancouver Giants and the White Spot restaurant chain, which they acquired in 1982. According to the company's description on the Tsawwassen Springs project website, "Shato Holdings Ltd. has developed major shopping centres, hotels, motels, commercial centres, office buildings as well as large residential developments."
Notably, in December 2017, Shato Holdings sold the White Spot property at 1608-1616 W Georgia Street in Vancouver for $245 million, underscoring its active role in significant real estate transactions within the region.
Future Prospects
While specific redevelopment plans for Willowbrook Park have not been disclosed, the property's location offers potential opportunities. The southern half of the shopping centre (6131 200 Street) falls under the jurisdiction of the City of Langley, while the northern half (6263 200 Street and 19888 Willowbrook Drive) is under the Township of Langley. Both municipalities have indicated plans to designate the area for high-density use, especially in light of the new SkyTrain station currently under construction as part of the Surrey-Langley extension of the Expo Line.
Conclusion
Shato Holdings Ltd.'s acquisition of Willowbrook Park shopping centre represents a significant investment in Langley's retail landscape. Given the company's diverse portfolio and history of strategic developments, this purchase aligns with its ongoing commitment to expanding its real estate holdings in key markets.
Source: Storeys
