Allied Properties Real Estate Investment Trust (REIT) has inked a deal to acquire six office properties from Choice Properties REIT. The $794-million transaction will add more than 1.2 million square feet of leasable space in downtown Montreal, Toronto and Vancouver to augment Allied’s existing portfolio of approximately 13.5 million square feet in the three cities.
Slated to close in the second quarter of 2022, Allied will cover the purchase price through the issuance of Class B units and a $200-million promissory note to Choice. The acquisitions align with Allied’s targets for biotech and life sciences facilities and include approximately 505,000 square feet in properties at 525 University Avenue and 175 Bloor Street East, Toronto, in which the Hospital for Sick Children and the life sciences commercialization specialist, Klick Inc., are principle tenants. The other four properties in the deal house education and technology, advertising, media and information (TAMI) uses, in keeping with Allied’s urban workforce focus.
“This is an extraordinary win-win transaction for Choice and Allied. It represents an important and compelling strategic refinement for Choice and a significant expansion of operating capability for Allied,” asserts Michael Emory, president and chief executive officer of Allied Properties REIT.
“Our overriding objective in making this acquisition is to expand our operating capability in Montreal, Toronto and Vancouver,” concurs Tom Burns, Allied’s executive vice president and chief operating officer.
The six office properties currently range from 81 per cent to 99 per cent occupancy. Five come with BOMA BEST silver or gold ratings, while the sixth boasts LEED gold status for operations and maintenance.
