Allied Properties Real Estate Investment Trust announced on June 20 that it has acquired 56 The Esplanade in Toronto for $60 million.
“This is a strategic acquisition for Allied, in that it augments a large assembly we’ve made over time in the St. Lawrence Market area,” said Michael Emory, President and CEO. “It affords us a reasonable current yield, as well as a property-specific intensification opportunity and a larger intensification opportunity that we can pursue in conjunction with 35-49 Front East, the assembly we own to the north of the Property. We do not expect to pursue either intensification opportunity in the near term.”
56 The Esplanade
Located on the north side of The Esplanade, the Property is a Class I building situated on 26,261 square feet of land. Built in 1903 for a manufacturer of flour milling equipment, the building on the Property was renovated and retrofitted over the past three decades. It is comprised of 76,112 square feet of GLA that is 98% leased to tenants consistent in character and quality with Allied’s tenant base.
Closing and Financing
The property was free and clear of mortgage financing on closing. Allied financed the acquisition by utilizing a portion of the proceeds from its most recent unsecured debenture financing. Allied expects the acquisition to be neutral to its FFO per unit at the outset and to become modestly accretive to its FFO per unit during the first five years of ownership.