Real estate investment trust Dream Office REIT (D_u.TO) said it would sell a 50 percent interest in Scotia Plaza, Canada’s second tallest office building, to KingSett Capital and Alberta Investment Management Corp (AIMCo).
KingSett Capital and AIMCo would buy the interest in the building from Dream Office REIT and H&R REIT (HR_u.TO).
Under the deal, KingSett and AIMco will buy a 16.67 percent stake in Scotia Plaza from Dream Office and H&R REIT’s 33.3 percent stake.
Dream Office, which would continue to own a 50 percent interest in Scotia Plaza, said it will receive net proceeds of about US$115 million before closing costs and adjustments.
The 68-story Scotia Tower is in the heart of Toronto’s financial district and a prominent landmark.
Update: KingSett is a Canadian real estate private equity firm. It raised $1 billion with the launch of its sixth real estate fund, KingSett Real Estate Growth LP No. 6, in April 2016.
(Reporting by Rama Venkat Raman in Bengaluru; Editing by Leslie Adler)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Scotia Plaza