gristle
Senior Member
Huge, huge cost.
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Scotia Plaza (KingSett) updates
- Thread starter maestro
- Start date
Huge, huge cost.
urbandreamer
recession proof
New Scotland Yard?
vegeta_skyline
Senior Member
"If I had a billion dollars, I would buy Scotia Plaza" is how the song goes in my head.
Calvin
Active Member
and turn it into a fantastic condo?
Thanos
Active Member
haha does Tarion apply to office buildings... that was a good one either way.
I don't think this implies Scotia bank wants to downsize it's downtown presence ? I mean they may want to, but selling this building has nothing to do with that.
This sale does not imply anything. Scotia Bank is not going anywhere. The only reason they bought the tower is because the original owner went bankrupt so it made sense for them to quickly purchase the tower as to not cause any disruption.
They're selling it because only few banks around the world actually own their HQ towers. It is not their line of business.
They also need to raise some cash for Basel III and other acquisitions.
TOareaFan
Superstar
yes.....Basel has caused a lot of banks to sell their towers (not all of them fawlty).
Edward
Senior Member
Scotia Plaza sells for a record $1.27 billion!
Scotiabank's landmark Toronto tower sells for record $1.27-billion
STEVE LADURANTAYE AND GRANT ROBERTSON
From Wednesday's Globe and Mail
http://www.theglobeandmail.com/glob...-sells-for-record-127-billion/article2440355/
Bank of Nova Scotia’s landmark red tower in downtown Toronto has been sold for $1.27-billion, the highest price yet paid for a Canadian office building.
After several months on the market and rumours of international interest, Toronto’s Dundee Real Estate Investment Trust partnered with H&R Real Estate Investment Trust to buy the 68-storey tower. The building will be two-thirds owned by Dundee, with H&R holding the remaining interest.
The strength of the Canadian office market, which has rebounded soundly since the recession. The value of high-quality downtown buildings across the country has been rising, as the same low interest rates that are driving home prices higher help property investors outbid competitors for marquee properties.
“This is the largest trade we’ve ever seen for a single asset in this country,” said George Carras, president of real estate analysis firm RealNet Canada. “Investors are chasing the yield these properties offer.”
It’s the second big deal in less than a week, after Boston-based Bentall Kennedy bought the fully leased, 33-storey Bentall V tower in Vancouver for almost $400-million.
Scotiabank occupies 61 per cent of its namesake building in Toronto, with an average lease term of 13.5 years. The Scotia Plaza complex includes the main tower at King Street West and Bay Street, as well as a few smaller structures on the same block.
The complex consists of about two million square feet of space and is 99.5 per cent occupied. Neither purchasers could comment on the deal, since a portion of its financing is through a bought deal that hasn’t closed.
Scotia Plaza’s tower, completed in 1988, is a postmodern landmark in Toronto's core. The red granite spire stands beside the corner of King and Bay Streets, in the heart of the city's financial district, and is one of the most sought-after business addresses in the country.
Scotiabank put the Bay Street tower up for sale in January. Faced with having to drum up more capital to backstop its lending operations to comply with new global banking regulations, the sale of the building was a way for Scotiabank to raise money without having to sell off core banking assets.
Although it was common in decades past for banks to own their headquarters, a series of real estate sales over the years left Scotiabank as the only of Canada’s Big Six lenders to own its headquarters.
It is the second major asset sale by the bank in the past year. In January, Scotiabank sold its remaining 50-per-cent stake in Calgary's Scotia Centre, a 42-storey tower, for $140-million.
Scotiabank sold $1.66-billion worth of shares in February in a bid to boost its capital levels. When that move happened, some analysts figured the bank wouldn’t be under pressure to sell the building if a deal couldn’t be found at an attractive price.
But the sale price exceeded the $1-billion to $1.2-billion most analysts thought the building would fetch.
“[The price] was at the upper end of what people were expecting,” said National Bank Financial analyst Peter Routledge. “It was certainly higher than what we thought they would get.”
The deal is expected to close by June 20, the bank said.
Scotiabank's landmark Toronto tower sells for record $1.27-billion
STEVE LADURANTAYE AND GRANT ROBERTSON
From Wednesday's Globe and Mail
http://www.theglobeandmail.com/glob...-sells-for-record-127-billion/article2440355/
Bank of Nova Scotia’s landmark red tower in downtown Toronto has been sold for $1.27-billion, the highest price yet paid for a Canadian office building.
After several months on the market and rumours of international interest, Toronto’s Dundee Real Estate Investment Trust partnered with H&R Real Estate Investment Trust to buy the 68-storey tower. The building will be two-thirds owned by Dundee, with H&R holding the remaining interest.
The strength of the Canadian office market, which has rebounded soundly since the recession. The value of high-quality downtown buildings across the country has been rising, as the same low interest rates that are driving home prices higher help property investors outbid competitors for marquee properties.
“This is the largest trade we’ve ever seen for a single asset in this country,” said George Carras, president of real estate analysis firm RealNet Canada. “Investors are chasing the yield these properties offer.”
It’s the second big deal in less than a week, after Boston-based Bentall Kennedy bought the fully leased, 33-storey Bentall V tower in Vancouver for almost $400-million.
Scotiabank occupies 61 per cent of its namesake building in Toronto, with an average lease term of 13.5 years. The Scotia Plaza complex includes the main tower at King Street West and Bay Street, as well as a few smaller structures on the same block.
The complex consists of about two million square feet of space and is 99.5 per cent occupied. Neither purchasers could comment on the deal, since a portion of its financing is through a bought deal that hasn’t closed.
Scotia Plaza’s tower, completed in 1988, is a postmodern landmark in Toronto's core. The red granite spire stands beside the corner of King and Bay Streets, in the heart of the city's financial district, and is one of the most sought-after business addresses in the country.
Scotiabank put the Bay Street tower up for sale in January. Faced with having to drum up more capital to backstop its lending operations to comply with new global banking regulations, the sale of the building was a way for Scotiabank to raise money without having to sell off core banking assets.
Although it was common in decades past for banks to own their headquarters, a series of real estate sales over the years left Scotiabank as the only of Canada’s Big Six lenders to own its headquarters.
It is the second major asset sale by the bank in the past year. In January, Scotiabank sold its remaining 50-per-cent stake in Calgary's Scotia Centre, a 42-storey tower, for $140-million.
Scotiabank sold $1.66-billion worth of shares in February in a bid to boost its capital levels. When that move happened, some analysts figured the bank wouldn’t be under pressure to sell the building if a deal couldn’t be found at an attractive price.
But the sale price exceeded the $1-billion to $1.2-billion most analysts thought the building would fetch.
“[The price] was at the upper end of what people were expecting,” said National Bank Financial analyst Peter Routledge. “It was certainly higher than what we thought they would get.”
The deal is expected to close by June 20, the bank said.
Conrad Black
Senior Member
That's some big money for a great tower.
taal
Senior Member
I think for BA East, this kind of rules out Scotia, at least having a large presence.
kris
Senior Member
1.27 BILLION is alot, if i had that money i would just build a new tower
Tuscani01
Senior Member
Can you build a fully tenanted 68 storey granite clad building, while restoring a 16 storey building that exists on site for $1.27 Billion?
RBC Centre cost about $400,000 to construct, and that was just a new build without tenants, not to mention the tower is shorter and not as deep as Scotia.
doug
Active Member
About the same as a one bedroom condo....good deal!
Tuscani01
Senior Member
TOareaFan
Superstar
Granite clad or not, what attracts investors (particulalry REITs) is cash flow. What I have yet to see reported is the kind of lease-back that SB has entered into. How long and for how much, they have committed to their space is what, ultimately, leads to NOI for the property and, for the REITs, distributable cash!
Johnny Kay
Active Member
Think it'll be a tear down for condos?