Wednesday, December 07, 2022

Blackstone to buy TD warehouse portfolio in tight Toronto market

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A Blackstone Inc. business has agreed to buy six industrial properties in the Toronto area.

Blackstone Real Estate is paying more than $400 million (US$297 million) in cash for the properties, which total 140,000 square meters and are all fully leased. The transaction is one of the largest trades of a private industrial portfolio in Canada in recent years.

“Global logistics is one of our highest-conviction investment themes, and high-quality, last-mile industrial properties like these continue to benefit from some of the strongest real estate fundamentals in Canada,” said Janice Lin, Blackstone’s head of Canada real estate.

The private equity firm is purchasing the properties from the asset-management arm of Toronto-Dominion Bank, according to a person familiar with the matter, who asked not to be named because the information is private. A Blackstone spokesperson declined to comment, while a TD representative had no immediate comment.

Blackstone has plowed money into industrial properties in recent years, spending roughly US$1 billion since September to acquire spaces globally in areas such as Europe, China, Canada and India.

Logistics and rental housing have been two big areas of focus for the private equity firm even as the broader U.S. real estate industry slows down. Blackstone hasn’t been immune to the softening market, with one of its key property vehicles, Blackstone Real Estate Income Trust Inc., facing a rise in redemption requests as overseas investor appetites wane.

The deal for more logistics space will expand Blackstone’s reach in Canada, where it bought Pure Industrial Real Estate Investment Trust in 2018. Canada’s industrial market remains tight, with the rate of space available at a record low of 1.6 per cent in the first quarter, according to CBRE Group Inc.

 

Canadians look to side hustles to make up for inflation pressure, but at what cost?

Canadians' budgets are being stretched thin as the cost of living climbs — and to compensate, some are taking on a side hustle.

From reselling used items or dog walking to taking shifts driving for delivery services and acting as a brand ambassador, there are plenty of ways to earn some extra cash.

Erin Rappaport, a Montreal-based human resources generalist, has made extra money in a few different ways.

Rappaport has worked as a brand ambassador for various companies, offering free samples and proving product information at famous sites around Montreal such as the Bell Centre. 

She also uses reselling platforms such as Poshmark and Facebook Marketplace to sell used shoes, clothing and furniture from around the house.

"I have weeks where I have four sales and then sometimes I have none, it really depends," said Rappaport.

New data from professional service company Accenture found that 41 per cent of Canadians plan to take up a side hustle such as babysitting, dog walking, and selling items online to earn additional income before the holidays. 

Another 39 per cent said they would take on additional work hours to make up the extra cash, according to the survey of 1,510 Canadians who had purchased an item for personal use in the last six months.  

Whether it is to save money in the long term or the short term, the first thing to do is to indicate the pressure point of a budget, said Anne Arbour, spokeswoman of the Credit Counselling Society

Then, understand how much time is available for the side hustle and what strengths could be used to make additional income, said Arbour. 

However, there are additional factors to consider in pursuit of additional income such as reporting the earnings and claiming deductions and making sure there is not a conflict of interest with a primary source of income. 

"If the purpose of this is to improve your financial situation check that the extra income isn't putting you in a higher tax bracket, so you might inadvertently be hurting yourself more than helping yourself," said Arbour. 

Having a side hustle grew in popularity when many people had more time on their hands during COVID-19 lockdowns. And for those who were laid off during the pandemic, their side hustle became a full-time reality.

One side hustle that became particularly popular during the pandemic was gig economy work such as driving for a ride share company or a food delivery service. 

In 2017, Jennifer Scott began working full-time as a bike carrier, delivering food for a number of delivery apps in Toronto, and has some words of caution for those with thoughts of joining the industry. 

Often having to navigate traffic and challenging weather conditions, Scott said she injured her knee and had to switch to delivering on foot. 

"I am constantly reminded that if I'm hurt at work when I'm delivering in these conditions, I have nobody, I have only myself to try and figure out how to deal with that," said Scott. 

Workers in the gig economy are considered private contractors, which means they are not entitled to similar employment protections as other workers. 

“There are no sick days there," said Scott. "There's no insurance, there's nothing."

Arbour said that when picking up an additional source of income, it is important to check with insurance to see what needs to be covered. 

But for some, such as Scott, additional protections for the job such as private health care are a luxury. 

"For folks who have that, that's excellent, but for most people who do this work, it's not possible," said Scott.

Whether it is delivering food or taking on shifts as a brand ambassador, it should be considered that when combined with a full-time job, the extra work hours may lead to burnout or exhaustion.  

While taking on a side hustle while working full-time is tiring, Rappaport said that it is the additional money that keeps her going.

This report by The Canadian Press was first published Dec. 6, 2022.

 

Canfor temporarily reducing Canadian production due to weak market conditions


Rows of lumber at a lumberyard in Victoria, British Columbia, Canada, on Friday, May 7, 2020. The pandemic-fueled surge in home construction last year took North American sawmills by surprise, sending lumber prices to new records. Photographer: James MacDonald/Bloomberg

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Canfor Corp. is temporarily reducing its Canadian production due to what it says are very weak market conditions.

The Vancouver-based company says there will be curtailments at all of its solid wood facilities in B.C. and Alberta.

It says the move will reduce production by about 150 million board feet in December and January.

 

Canfor chief executive Don Kayne says the company will work to mitigate the affects on employees by providing support and identifying meaningful work during the downtime.

The curtailments will begin to be implemented on Dec. 19 and range from one to four weeks across its Canadian operations.

Canfor says it will continue to adjust operating rates to align with market conditions and anticipates that the majority of its B.C. facilities will operate below full capacity in the new year.

This report by The Canadian Press was first published Dec. 6, 2022.

Bill Cosby, NBCUniversal face new sexual assault suit from 'The Cosby Show' actresses, others


Plaintiffs further allege that the studio actively "enabled and aided" Cosby in these alleged sexual assaults to preserve their financial stake in his celebrity.


By Ben Whedon
Updated: December 6, 2022 -

Bill Cosby and NBCUniversal are facing yet another legal battle over "The Cosby Show" star's alleged sexual misconduct, with multiple plaintiffs filing a sexual assault and battery suit in New York on Tuesday.

"Each plaintiff was sexually assaulted and battered by defendant Bill Cosby in the same or similar manner when he used his power, fame, and prestige... to misuse his enormous power in such a nefarious, horrific way," the filing reads.

Plaintiffs further allege that the studio actively "enabled and aided" Cosby in these alleged sexual assaults to preserve their financial stake in his celebrity.

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"Over the course of several decades, Bill Cosby engaged in the serial sexual assault of dozens of women for his sexual gratification while the co-defendants enabled and aided these sexual assaults to benefit financially by their association with Bill Cosby," the suit alleges.

The suit lists "sexual assault, sexual battery, intentional infliction of emotional distress, and false imprisonment," among many of the alleged torts Cosby committed. They further assert that NBCUniversal Media and the other co-defendant firms did not investigate Cosby's actions or attempt to intervene.

While the alleged incidents occurred beyond the statute of limitations, plaintiffs are able to bring the suit by virtue of the New York Adult Survivors Act, which has created a one-year window suspending those limits to allow victims to come forward, Deadline reported.

Cosby was convicted of aggravated indecent assault in 2018 but a Pennsylvania Supreme Court overturned his conviction in 2021 asserting that his right to due process had been violated during the court proceedings. He was released from prison in June of that year and may not be retried on the same accusations.

Upon his release, Cosby professed his innocence and thanked the court for "upholding the rule of law."

He has since lost a civil suit against a separate accuser and must pay $500,000 in restitution, which he has thus far declined to do.

 

Scathing report urges major changes at FDA, even breaking up agency

An outside group that was asked to examine problems at the Food and Drug Administration in the wake of an infant formula crisis this year offered a scathing indictment of the agency’s structure and culture and recommended major restructuring, including possibly breaking up the agency so that oversight of the food system gets more attention.

The FDA has long been accused of giving its food program short shrift, and it came under fire from members of Congress and others for not heading off a formula shortage that left many parents scrambling to feed their infants. The response to the formula crisis was hampered by flaws in the leadership structure and poor communication within an agency that seemed to be in a state of “constant turmoil,” according to the report from the Reagan-Udall Foundation for the FDA, which the agency asked to assess its operations.

The report recommends several options for fixing the agency, which is housed within the Department of Health and Human Services and is responsible for overseeing aspects of the nation’s food system, as well as tobacco products and pharmaceutical drugs.

The task force’s first, most sweeping suggestion was to create separate food and drug administrations within HHS, which would require approval from Congress. The task force acknowledged this was “thinking big” and would be a longer-term solution to remedying problems but said the benefit would be elevating the visibility of each side and separating their budgets.

Other, less ambitious options included separating the food and drug arms but keeping them within a single agency, as well as creating a new deputy commissioner position with authority for overseeing food.

In a statement, FDA Commissioner Robert M. Califf said he will review the report and make decisions about the future of the agency with input from experts inside and outside the FDA. 

The report comes in the wake of heavy criticism of the agency’s handling of a formula shortage earlier this year. Critics said the agency failed to act quickly enough on complaints about sanitation at a large Abbott Nutrition manufacturing facility in Michigan and then did not foresee the shortage triggered when the plant was shuttered to fix deficiencies identified by the FDA.

At least four babies fell ill from a bacterial infection after drinking powdered formula manufactured there. Two of the babies died. FDA investigators were not able to identify the source of the bacteria, and the company said it did not originate at the factory. But the company recalled 5 million units of powdered formula, and the five-month closure squeezed formula supplies. This left many parents without reliable sources of food for their babies and medically fragile children.

Legislators and food safety experts asserted that agency leadership has allowed long-standing structural flaws to fester.

Food safety experts have long complained that the agency’s food oversight arm has been chronically understaffed and underfunded. Those problems, critics say, have been exacerbated by poor communication between its centers. More broadly, experts say, the agency has prioritized the drug and medicine side, frequently drawing leaders with medical backgrounds and without food industry knowledge.

“This report exceeds expectations because it represents a formal acknowledgment of all the issues in the foods program that have taken place over many years,” said Brian Ronholm, director of food policy for Consumer Reports. “That’s actually a very significant step.”

A bias toward the medical side, experts say, led to miscommunications and failures. A whistleblower report from a former employee alleging safety risks at the Abbott plant took four months to reach the top food safety official. The former employee subsequently dropped a federal Occupational Safety and Health Administration complaint, Abbott chief executive Robert Ford said in a call with investors this fall. Additionally, the coronavirus pandemic meant many food manufacturing facilities went without on-site inspections for most of a year.

In response to criticisms earlier this year in congressional hearings, Califf, a physician who was appointed to the top post in February, acknowledged that the response to the formula crisis took too long and that “some decisions in retrospect were not optimal.” Califf announced the review of the agency organization during a May hearing, and the Reagan-Udall review launched on Sept. 8.

Organizations representing consumers, the food industry and state food regulators are pushing to restructure the FDA. In April, the groups sent a letter to Califf, calling on him to unify the FDA food program under a deputy commissioner for foods, with accountability to the agency commissioner and direct authority over the agency’s food safety centers.

The Reagan-Udall task force suggested the agency establish a new structure with clear leaders and roles, that it develop a culture in which decision-making is rooted in scientific evidence and that it commit to better transparency, timeliness and predictability in decision-making.

“What’s clear is that the agency’s cultural and structural failures are contributing to communication, organizational and risk management failures that are making our food less safe,” said Scott Faber, a food safety expert with the Environmental Working Group. “Any of the structural reform options proposed by this task force would make the current system better, provided the Congress follows through on the needed resources.”

The Reagan-Udall Foundation is an independent nonprofit group created by Congress to help modernize industries and sectors covered by the FDA. It is funded by the FDA and large corporations that have business with the agency, including drugmakers Eli Lilly and Pfizer as well as Nestlé USA, which makes baby formula.