The Bow office tower in downtown Calgary will soon have a new owner after the property changes hands in a $1.67 billion deal.
H&R Real Estate Investment Trust announced on Tuesday that they have entered into an agreement to sell the two-million-square-foot Calgary property to Oak Street Real Estate Capital. The 1.1-million-square-foot Bell Campus in Mississauga, Ontario, is also included in the sale.
The Bow tower, located at 500 Centre Street S, was valued at a whopping $1,216,000,000, while the Bell Campus went for $457,000,000. A majority of the proceeds from the sale will be used to “pay down debt and to facilitate further strategic initiatives,” according to a press release.
“Today’s announcement is evidence of our commitment to our strategic repositioning and is a critical step forward on our path to achieving a more simplified structure,” said Thomas Hofstedter, president & CEO of H&R.
“We appreciate the patience and support of our unitholders as we continue to pursue opportunities to further enhance the value of our units,” he added.
H&R has the option to repurchase 100% ownership interest in the land and building of the Bow for $368 per square foot, equalling 60% of the total Bow Transaction value.
- See also:
H&R will continue to have a 15% interest in the net rent payable for the remainder of the current Ovintiv lease, which is up in May 2038.
With files from Laura Hanrahan