MONTREAL-Locally based Canmarc REIT has agreed to buy an office and two retail properties in Canada for $213 million. The purchases include Woodside Square in Toronto and Marche Jonquiere in Quebec, as well as the remaining 50% interest in Scotia Centre in Calgary.
According to a trust statement, the purchase price will be satisfied in part by the assumption of about $37 million of existing mortgages. The balance of the purchase price will be funded by mortgages totaling $94 million, cash and credit facilities.
In April 2011, the trust, then named Homburg Canada REIT, purchased the first 50% share in the Calgary office building from Scotiabank for $118 million. The bank has now sold the other half interest to Canmarc for $140 million. The trust also manages the 546,494-square-foot office building, includes a 83,937-square-foot retail concourse. The building includes tenants such as the bank, Gowlings, Shaw Cablesystems, Nu Vista Energy and Chinook Energy.
Jim Beckerleg, president and CEO of Canmarc, said in a statement that the Calgary office market is an important region for the trust. “We continue to actively seek good opportunities there,” he said.
He also said that the Woodside Square purchase is the first significant property bought by the trust in Ontario. The 282,952-square-foot mall was bought for $59.2 million, and includes tenants such as Food Basics, LCBO and a movie theater. The mall, built in 1977, is at the corner of Fitch Avenue East and McCowan Road.
The second retail center is 66,189 square feet, and is anchored by a freestanding IGA built in 2008. The trust purchased Marche Jonquiere for $13.8 million. The ownership of both retail properties is not clear.
Beckerleg said the purchases increase the trust’s gross leasable area by about 7.6%. “This is a great start to 2012,” he said. “We have maintained a steady pace of growth since our initial public offering in May 2010, with 14 accretive acquisitions and a strong track record of organic growth.”
The trust is currently trying to block an $838 million takeover bid by Quebec City-based Cominar REIT. The Bureau de decision et de revision will hold a hearing Jan. 19 regarding the bid.
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