Canadian REIT CANMARC Buys Three Properties for $213M
- Jan 12, 2012
January 12, 2012
By Barbra Murray, Contributing Editor
Less than two years after CANMARC Real Estate Investment Trust completed its initial public offering, there appears to be no end in sight to its shopping spree as the REIT commits to the purchase of three commercial properties. With the closing of the acquisition, CANMARC will have enhanced its portfolio by 664,400 square feet of office and retail space located from one end of Canada to the next.
In Calgary, Alb., CANMARC will take its co-ownership to sole ownership with the purchase of the remaining 50 percent interest in Scotia Centre, a premier 630,400-square-foot office building downtown. The 42-story high-rise encompasses 546,400 square feet of office space, as well as 84,000 square feet of retail space on a three-story concourse. The price tag on the property, sited adjacent to a light rail transit station, is $140 million.
CANMARC will also add the 283,000-square-foot Woodside Square in Toronto, Ont., to its portfolio for nearly $59.3 million. Occupying a 24.5-acre site spanning a full city block, the enclosed, single-story community shopping center also features a 9,000-square-foot mezzanine level with office accommodations and a movie theater.
Marché Jonquière, a 66,200-square-foot mall in Jonquière, Que., will also come under the REIT’s ownership. The grocery-anchored neighborhood strip center will come at a cost of approximately $13.8 million.
CANMARC plans to finance the purchase of the three properties through $94 million in new mortgages, cash on hand, funds from credit facilities and the assumption of $37 million of debt.
“With these three accretive acquisitions today, CANMARC continues to deliver on its strategy of building a solid footprint of office and retail properties in key real estate markets across Canada,” Jim Beckerleg, president and CEO of CANMARC, noted in a prepared statement. ” We have maintained a steady pace of growth since our initial public offering in May 2010, with fourteen accretive acquisitions and a strong track record of organic growth.