Cominar Takes Montreal Office Tower
- Oct 03, 2008
Cominar Real Estate Investment Trust has purchased a 24-story Class A office property in Downtown Montreal for C$165 million. The purchase will be financed by an agreement Cominar has entered into with a Canadian insurance company for around C$97 million at a 5.4 percent interest rate. The remainder of the purchase price will be funded by Cominar’s current credit facilities. The property is an approximately 530,000-square-foot office building connected to 4 historic greystone buildings along Montreal’s Sherbrooke Street. Currently, the building enjoys an occupancy rate of 90 percent, with 24 clients, primarily international corporations. The largest tenant takes up around 13 percent of the property’s leasable space, and the average lease is a six-year term. Cominar representatives indicated that the purchase achieved its goal of acquiring a new building to replace an office building they currently own that is being expropriated. The company feels that the funds raised from the expropriation process and the financing obtained for the purchase made this an attractive deal for the company. “The acquisition of 2001 McGill College, a Class A office property, is an opportunity for Cominar to enhance its portfolio while maintaining its strategy of accretively acquiring high-quality properties in its markets,” Michel Dallaire, Cominar’s president & CEO, said in a release. Cominar REIT is the largest commercial property owner and manager in Quebec, with a portfolio of 213 properties. This purchase brings Cominar’s assets to a total of approximately $1.7 billion. The firm has around 18.1 million square feet of property in its portfolio, mainly in the Ottawa, Montreal and Quebec City areas.