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Slate Office Buying $191.4 Million in Assets

REIT to Make Purchases in Greater Toronto Area and Atlantic Canada That Will Boost GLA to 7.4 Million SF
January 18, 2018
Pictured: 5500 N. Service Rd. in Burlington, one of seven properties to be acquired by Slate Office Real Estate Investment Trust.

Toronto-based Slate Office Real Estate Investment Trust is spending $191.4 million to buy seven properties in the Greater Toronto Area and Atlantic Canada at $192 per square foot.

The properties are part of a portfolio of assets being sold by Cominar REIT connected to a sale contract between Slate Acquisitions Inc. - on behalf of Slate Canadian Real Estate Opportunity Fund - and Cominar.

In December, Quebec City-based Cominar Real Estate Investment Trust said it was selling 97 properties it considers non-core to Slate Acquisitions, Inc. for $1.14 billion.

Slate Office said the acquisition is expected to be immediately accretive to the REIT's 2018 adjusted funds from operations on a leverage-neutral basis.

The properties being acquired are 93% occupied, with an average lease term of 4.9 years, totaling 995,091 square feet of gross leasable area.

Slate Office REIT's GLA will jump to 7.4 million square feet, and the deal will increase the occupancy of the REIT's portfolio by approximately 100 basis points.

In Atlantic Canada, the properties include 81 Albert St. in Moncton, a 100% leased building totaling 64,954 square feet; 84-86 Chain Lake Dr. in Halifax, a 97% leased building totaling 77,666 square feet; and 570 Queen St. in Fredericton, an 87% leased building totaling 69,708 square feet.

In Toronto, the REIT is acquiring 225 Duncan Mill Rd., a 155,872-square-foot building that is 89% leased; 105 Moatfield, a 248,981-square-foot building that is 100% leased; and 95 Moatfield, a 156,426-square-foot building that is 100% leased.

In the Greater Toronto Area, the REIT will acquire 5500 N. Service Rd. in Burlington, an 80% leased, 221,484-square-foot building.

In conjunction with the deal, the REIT has entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and National Bank Financial Inc. to issue $90 million of subscription receipts and $25 million aggregate principal amount of convertible unsecured subordinated debentures, both on a bought deal basis.

Garry Marr, Toronto Market Reporter  CoStar Group   

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