LG Electronics Canada has leased 984,176 square feet in the King Jane Business Park in King City, Ont. to serve as its distribution hub, a transaction which represents Nicola Real Estate’s largest leasing to date by square footage.

The lease covers the business park’s B and C buildings, and is both a relocation and a major expansion for LG, adding more than 280,000 square feet of net new space to the South Korean electronics company’s Greater Toronto Area (GTA) footprint. The leased facilities are to support LG's distribution and supply chain operations across Canada.

LG “brings a strong covenant to the site as the anchor tenant to the park,” Nicola said in a Monday morning release.

The transaction “reflects the quality of the assets we are building and the strength of demand for modern industrial space in the GTA,” said Adam Sherriff-Scott, vice-president of asset management and portfolio strategy at Vancouver-based Nicola Real Estate.

Nicola Real Estate is the in-house real estate team of Nicola Wealth Management Ltd., which manages over $17 billion in assets for high-net-worth individuals, families and institutions.

The business park is owned by Nicola Value Add Real Estate LP and institutional partners. For the transaction, Colliers represented the landlord ownership side while CBRE represented LG.

About King Jane Business Park

The King Jane Business Park is designed to have 1.7 million square feet of space across five buildings, all expected to bear the Canada Green Building Council’s Zero Carbon Building – Design certification.

Tenants are to have access to 40-foot clear heights, truck-level doors, drive-in shipping doors and approximately trailer parking spaces, all but one kilometre from the Highway 400 interchange.

To help tenants meet their sustainability targets, the business park’s buildings are designed with thick insulated metal panels, high insulation value for the roofing and equipment that bypasses natural gas consumption through heat pumps and solar power.

King City, located north of Toronto, is “centre ice” for logistics companies in the GTA, Colliers said in a 2024 article, noting its access to Highway 400, which connects the business park to a labour force and other distribution corridors. Companies servicing the Quebec and Atlantic Canada markets are finding it increasingly difficult to do so from the west end of Toronto, Nick Stryland, then-vice-president of asset management for Nicola Institutional Realty Advisors, said. 

The 419,861-square-foot building B and 560,895-square-foot building C are scheduled for completion in 2027. Construction on the 418,402-square-foot building A has finished.

Buildings D1 and D2 with 132,693 and 136,886 square feet, respectively, are planned for a future phase.

Nicola’s recent GTA industrial leases

The leasing of the King City site continues Nicola’s activity in the GTA industrial market. In 2025, it secured under 800,000 square feet of leases at 601 Milner Ave. in Scarborough, the Bronte Station Business Park in Oakville and 901 Hopkins St. in Whitby.

“Industrial plays a large role in our asset composition in Canada, especially in Toronto,” Mark Hannah, managing director and head of real estate for Nicola Real Estate, told RENX in an interview.

Bobrick, a washroom accessory and toilet partition company, leased approximately 110,000 square feet in the Scarborough building for 15 years. Element Event Solutions signed a 10-year lease for the approximately 240,000 of square foot remaining.

Logistics solutions provider DP World inked a five-year lease for 291,325 square feet in the Bronte Station Business Park.

Storage services and fulfillment company PPFD signed for five years of 146,445 square feet at the Whitby asset.