Allied to buy Westbank’s stakes in Toronto, Vancouver towers
BNN Bloomberg
Allied Properties Real Estate Investment Trust agreed to buy stakes in towers in Toronto and Vancouver from Canadian property developer Westbank Corp., adding ownership positions in two major urban properties.
The transaction includes a deal that values Vancouver’s 400 West Georgia at $395 million and one that values Toronto’s 19 Duncan at $525.7 million, according to a statement Monday. The Vancouver tower was developed and owned by Westbank, while the Toronto building was a joint venture co-owned equally by developer Westbank and Allied.
The tower stakes bulk up the urban portfolio for Allied, which specializes in repurposing old downtown industrial and warehouse space for tenants in industries including the technology sector. Westbank has quickly become one of Vancouver’s best known property developers for the ambitious scale and designs of its projects, occasionally dividing opinion in the process.
Allied plans to convert $130.5 million of a $198 million secured mezzanine loan to Westbank into equity, giving it 90 per cent of 400 West Georgia, and it will acquire a 95 per cent interest in 19 Duncan by converting the remainder of the loan to equity, along with a $36.3 million cash payment to Westbank.
