Allied Properties Real Estate Investment Enters Montreal Market
The acquisition expands Allied’s footprint into Montreal with one building, as well as two in Vancouver and adds another three to its Toronto portfolio. In total, the portfolio sale is composed of 1.2M sq. ft.
“This is an extraordinary win-win transaction for Choice and Allied,” said Michael Emory, Allied Properties’ President and CEO. “It represents an important and compelling strategic refinement for Choice and a significant expansion of operating capability for Allied Properties. By using Allied’s units as currency for 75% of the purchase price and a promissory note for the balance, each of Choice and Allied will achieve important capital-allocation objectives.”
The transaction is slated to close before the beginning of the this year’s third quarter and is subject to the Toronto Stock Exchange and Competition Act clearance. An additional detail is Goldman Sachs Canada, Scotiabank and Aird & Berlis LLP advised Allied Properties on the transition, while RBC Capital Markets and Torys advised Choice Properties.
“Our overriding objective in making this acquisition is to expand our operating capability in Montréal, Toronto and Vancouver,” said Tom Burns, Allied’s Executive Vice President and COO. “In particular, the acquisition will expand our ability to serve the biotech and life-sciences, education and TAMI sectors. It will also further our objective of becoming a leading provider of distinctive urban workspace in Vancouver.”
The single Montreal property Allied Properties is acquiring is 1010 Sherbrooke, bringing the portfolio to 32 properties worth over 7M sq. ft. of gross living area (GLA), while in Toronto it’s picking up 100 Yonge, 525 University and 175 Bloor East, bringing its total portfolio total to 108 properties worth of 5.4m square feet of GLA. In Vancouver, Allied is acquiring 1508 Broadway and 1185 West Georgia, brining its Vancouver portfolio to 15 properties with over 1M square feet of GLA.
Neil has covered housing and real estate for a number of years as a Toronto-based journalist. Before joining STOREYS, he was a regular contributor for the Toronto Star, Toronto Sun, National Post, Vice, Canadian Real Estate Wealth, and several other publications. Have a real estate story? Email him at [email protected]