Today, Brookfield Canada Office Properties (BOX) announced that it purchased the Bay Adelaide Centre East development in the center of Toronto. BOX acquired the asset from Brookfield Office Properties Inc.(BPO), its parent company. The asset was a 44-storey; 980,000-square-foot foremost office building that was presently under construction and was worth Can$635 million at stabilization.
BPO sold the asset to BOX on an "as-if-completed-and-stabilized basis." It would retain the development commitment as well as the construction, lease-up and capital spending.
BOX would initially pay Can$170 million. The amount would represent the money invested and worth given in the building. BOX would commit to fund Can$26 million for upfront equity and Can$350 million for the initial mortgage building loan. Moreover, BOX would pay its parent company Can$56 million for the maintenance for a total investment worth Can$602 million.
"This acquisition is strategic for BOX as Brookfield's vehicle for the ownership of its premier Canadian office assets," president and chief executive officer, Jan Sucharda, said. "Today's announcement affirms BOX's growth strategy and its commitment to adding value for its unitholders."
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