The group, known as Brookfield Consortium, also has taken up 86.6% of the outstanding limited voting units of O&Y REIT(not including those already owned by O&Y Properties), which will be voted in favor of the subsequent $13.59 (C$16.25) per unit acquisition transaction in late November, thereby ensuring that it will be approved.
The change from the original agreement is that the transaction relating to O&Y REIT is now proceeding by way of a take-over bid instead of an acquisition of assets and redemption of units. The acquisition of O&Y Properties, largely unchanged from the original deal, was conditional on approval of the transaction by 66 2/3% of O&Y Properties' shareholders who voted at a special meeting of shareholders this month.
As previously reported, BPO Properties will provide 25% of the equity and serve as property and asset manager for the portfolio. It is expected that BPO Properties' equity investment will total approximately $167.2 million (C$200 million). The CPP Investment Board will provide 50% of the equity for the portfolio.
O&Y REIT owns 24 office properties and O&Y Enterprise, which provides third-party management and leasing services to approximately 35 million sf across Canada. O&Y Properties is a Canadian commercial real estate company with two principal assets: First Canadian Place in Toronto and a 42% ownership interest in O&Y REIT. The combined portfolio of the two companies consists of 25 high-quality office properties totaling 9.7 million sf in six Canada markets, principally Toronto, Calgary and Ottawa.
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