Gazit Globe and its Canadian Partnership to Acquire York Mills Centre in Toronto for Approximately CAD $250 Million
04 Diciembre 2019 - 3:30AM
Gazit Globe and its Canadian Partnership to Acquire York Mills
Centre in Toronto for Approximately CAD $250 Million
Gazit Globe (TASE: GZT) (the "Company"), a leading global real
estate company focused on the ownership, management and development
of income-producing properties located in densely populated urban
areas, announced today that its wholly owned subsidiary has entered
into an agreement, along with its recently announced Canadian
partnership with Dori Segal (“Gazit TripLLLe Canada”), to acquire
York Mills Centre in Toronto Canada, for approximately CAD $250
million (at a 100% interest in the property, including transaction
costs). The Company is acquiring York Mills Centre through a joint
venture, in which the Company and Gazit TripLLLe Canada
collectively will acquire 66.7% of the property (33.3% by the
Company and 33.3% by Gazit TripLLLe Canada) and the remaining
approximately 33.3% will be acquired by a privately held Toronto
based real estate investment firm. The transaction is expected to
close prior to year-end, subject to customary conditions.
The York Mills Centre property is a
well-located, low-rise office complex with approximately 570,000
leasable square feet which includes retail area with approximately
35,000 square feet of leasable area situated on 6.7 acres of land.
The property is located in midtown Toronto, at the intersection of
Yonge Street and York Mills Road, built on top of and with direct
access to the York Mills subway station, two bus terminals with
more than 20 regional and local lines, and a nearby connection to
Highway 401.
The property is currently 94% leased with a
weighted average lease term of 8.4 years, anchored by strong
creditworthy tenants occupying the majority of the building such as
Royal Bank of Canada, Minto (a developer of residential communities
which operates Minto Apartment REIT, traded on the Toronto Stock
Exchange), and other attractive tenants. The building amenities
include a Good Life operated fitness center, restaurants and in
excess of ten medical offices.
The North Yonge corridor is an irreplaceable,
transit-oriented area which continues to exhibit growth. Currently,
there are 7 active and more than 10 proposed condo development
projects slated for the area, totaling over 7,000 units. Directly
across the street from the property, there is a proposed mixed-use
development project comprising of approximately 430,000 square feet
of residential, commercial and retail uses. The population within 3
kilometers and 5 kilometers of the property is approximately 82,000
and 347,000, respectively, which is expected to grow by 15% in the
next 10 years. The average annual household income within 3
kilometers and 5 kilometers of the property is approximately CAD
$147,000 and CAD $143,000, respectively.
The Company believes that the York Mills Centre
will generate an attractive risk adjusted return over the medium to
long-term. The Company expects to leverage the property with a
ten-year secured mortgage at a loan to value ratio of 60%.
In addition, Gazit TripLLLe Canada announced
that it has purchased three low-rise commercial properties in urban
locations with attractive demographics in Toronto for a total
investment of approximately CAD $23 million.
Gazit Globe
Gazit Globe is a leading global real estate
company focused on the ownership, management and development of
income-producing properties located in densely populated urban
areas in North America, Brazil, Israel, Northern, Central and
Eastern Europe. Gazit Globe is listed on the Tel Aviv Stock
Exchange (TASE: GZT) and is included in the TA-35 index in Israel.
As of September 30, 2019, Gazit Globe owns and operates 101
properties, with a gross leasable area of approximately 2.4 million
square meters and a total value of approximately NIS 37
billion.
FOR ADDITIONAL INFORMATION
A comprehensive copy of the Company’s financial report is
available on Gazit Globe website at www.gazitglobe.com
Investors Contact: IR@gazitgroup.com, Media Contact:
PR@gazitgroup.com
Gazit Globe Headquarters, Tel-Aviv, Israel, Tel: +972 3
6948000
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8b59c73e-b92d-4556-82d2-a6040075ede7
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