Allied Properties Real Estate Investment Trust says it has purchased six buildings from Choice Properties Real Estate Investment Trust for $794 million.
Toronto-based Allied says the six properties are all urban buildings and include the 110 Yonge St. space used by S.I. Systems, another at 525 University Ave. occupied by the Hospital for Sick Children and Klick Inc.'s 175 Bloor St. East office in Toronto.
Rounding out the acquisition is McGill University's 1010 Sherbrooke St. West space in Montreal and Vancouver's 1508 West Broadway and 1185 West Georgia St., which are used by Nicola Wealth and Fluor Canada, respectively.
Allied says it will pay $594 million of the purchase price by issuing more than 11.8 million class-B LP units to Choice Properties at $50.30 per unit.
Allied will pay the balance of the purchase price by granting Choice Properties a $200-million promissory note expiring on Dec. 31, 2023.
Allied says the transaction is expected to close before the end of the second quarter of 2022, but is subject to regulatory approvals.
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