TORONTO--(BUSINESS WIRE)--Slate Office REIT (TSX: SOT.UN) (the "REIT") announced today that it has entered into an agreement to sell 4211 Yonge Street in Toronto, Ontario for $63.0 million(1). This transaction was completed at a significant premium to the REIT’s purchase price and IFRS value. The REIT expects to reinvest the net proceeds into new investment opportunities that will strengthen the quality of the REIT’s portfolio and create incremental value for unitholders.
“The REIT has a robust acquisition pipeline in place and this transaction provides the REIT with additional capital to deploy into acquisition opportunities in 2020,” said Scott Antoniak, the REIT’s Chief Executive Officer. “While the REIT was not looking to dispose of 4211 Yonge Street, being able to achieve a 3.7% cap rate presented an exceptional opportunity to crystallize value for unitholders.”
Transaction Highlights
- Completed on an opportunistic basis to a user-owner at an attractive exit cap rate of 3.7%.
- Closing is expected in the first quarter of 2020.
Pipeline Highlights
- The REIT has a significant pipeline of acquisition opportunities in both new and existing markets across Canada and the U.S. and expects to begin executing on this pipeline in 2020.
- Growth will be focused on metropolitan areas that display strong population and employment growth, are transit oriented, have existing barriers to new building supply and are attractive to both established and emerging industries.
(1) Value reflected at 100%. Slate Office REIT owns 75% of the asset.
About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 37 strategic and well located real estate assets located primarily across Canada's major population centres and includes two downtown assets in Chicago, Illinois. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateofficereit.com to learn more.
About Slate Asset Management
Slate Asset Management is a leading real estate focused alternative investment platform with over $6 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.
