TORONTO – KingSett Capital and the Alberta Investment Management Corp. are acquiring a 50 per cent interest in Scotia Plaza, including 100 Yonge St. in downtown Toronto, in a deal valued at well over half a billion dollars.
Under the arrangement, KingSett and AIMCo have agreed to buy a 16.67 per cent ownership interest in the property from Dream Office REIT (TSX:D.UN) while concurrently acquiring the 33.33 interest currently owned by H&R REIT.
Following the transaction, Dream REIT, which expects to received net proceeds of $115 million in the deal, will continue to own a 50 per cent interest in Scotia Plaza.
H&R said is selling its interest for about $433 million and expects net proceeds of about $229 million before closing cost and adjustment after the buyers assume its share of existing financing.
H&R says it will use the proceeds to repay debt, including the $180 million in unsecured debentures maturing in July 2016.
Closing is expected to occur on or about June 30.