Grosvenor has signed S&S to its largest lease in nearly 75 years at Annacis Island, covering the entire Millennium 6 building, a 162,650 square foot warehouse at 1005 Derwent. The transaction marks the single largest lease within Grosvenor’s Investment portfolio in its Canadian history, reinforcing the asset as a core industrial node. S&S, a tech-forward leader in branded merchandise distribution, is investing an estimated $50 million in inventory at the new Vancouver facility, which is slated to be operational in the fourth quarter of 2026.

The new facility will more than double S&S’s regional footprint, adding 20,000 forward picking areas to enable broader and deeper inventory across key product categories. It will also integrate modern autonomous mobile robots as part of its automation strategy, enhancing speed, accuracy, and order quality. Josh Clark, Chief Operating Officer of S&S, emphasized that the investment strengthens the company’s ability to serve customers across Canada while creating a scalable and efficient network for future growth.

Grosvenor’s ownership of Annacis Island dates back to 1952, when it acquired the site as its first significant international investment. The island opened in 1955 as Canada’s first industrial park and remains a pioneering example of private-sector industrial planning. Grosvenor continues to own 185 acres on the island, aligning with its long-term strategy of investing in Canada.

Strategic Expansion and Market Impact

Sean Ungemach, Executive Vice Chairman of Cushman & Wakefield, noted that large format warehousing has stabilized, with vacancy dropping below 1% in BC, making assets like Millennium 6 highly sought after. The deal underscores the strength of the industrial sector in the province and creates a long-term relationship between Grosvenor and S&S.

Grosvenor is also preparing to begin construction on Millennium 7, a new 156,000 square foot, sustainably designed warehouse on Annacis Island, adjacent to the S&S facility. This development is part of Grosvenor’s broader plan to reposition its industrial portfolio as a modern, future-ready logistics and manufacturing hub.

Key Transaction Details

Robert Duteau, Executive Vice President, Investment at Grosvenor, highlighted that tenants like S&S are crucial to the vision of transforming Annacis Island into a world-class distribution hub. Enrique Escalona, Vice President, General Manager of Canada for S&S, added that the expansion reinforces the company’s long-term commitment to the region and its customers.

Banner Capital has entered a strategic partnership with GCM Grosvenor (NASDAQ: GCMG), a global alternative asset management solutions provider, to support the growth of its lower middle market private equity platform. This collaboration provides Banner with catalytic anchor capital for Banner Capital Fund II through GCM Grosvenor’s Sponsor Solutions platform. The partnership marks the fifth initiative under GCM Grosvenor’s Elevate strategy, which is designed to provide emerging managers with the resources to scale into institutional-grade fund managers.

Banner is led by Tanner Ainge and Tyler Price, who have worked together since 2021 to build the firm and assemble a portfolio of operating companies in the Intermountain West. The firm currently manages approximately $630 million in assets for a diversified group of institutional investors. With offices in Utah and Arizona, Banner has developed a regional footprint and a proprietary sourcing network across the Intermountain West.

Investment Strategy and Portfolio

Banner’s investment strategy targets companies that service the fundamental needs of American businesses and households, with a specific focus on the Intermountain West region. The firm invests in founder-owned businesses generating between $4 million and $15 million in EBITDA. This approach is highlighted by Fund II’s first investment, Western Pavement Services, Inc., an asphalt maintenance platform that has scaled by acquiring operations in Arizona, Utah, and Nevada.

Market Position and Growth

The firm’s growth occurs alongside the expansion of the independent sponsor market in the United States, which now encompasses more than 1,500 firms. Banner aims to transition from an independent sponsor to an institutional-grade fund manager. The firm utilizes a partnership approach, deep local relationships, and a network of operational executives to attract founder-owned businesses at pivotal transition points.

GCM Grosvenor manages approximately $91 billion in assets under management. The inaugural Elevate Fund completed fundraising in December 2024 with nearly $800 million in committed capital. Approximately $21 billion of GCM Grosvenor’s total assets under management is allocated to emerging managers.