|Dundee REIT Acquires Two-Thirds Interest in Scotia Plaza
June 21, 2012
Dundee Real Estate Investment Trust (REIT) recently announced it has closed the Scotia Plaza complex acquisition. Dundee REIT holds a two-thirds interest and jointly owns and manages the property with H&R REIT. The property was acquired for $1.266 billion, with Dundee REIT’s portion rounding out at $844.3 million.
Dundee funded the acquisition through proceeds from a public equity offering and a private placement of mortgage bonds.
As a result of the combination of equity and debt financing used to complete the acquisition, Dundee REIT has maintained a conservative balance sheet with 52 per cent debt-to-gross-book-value.
Chief Executive Officer of Dundee REIT, Michael Cooper, said, “Scotia Plaza is an exciting addition to our portfolio – improving the quality of our assets and strengthening our cash flow. We are very pleased to have secured such attractive long-term financing at an interest rate of 3.21 per cent. From every perspective, we feel that this is a really great investment.”