TORONTO—Slate Office REIT has completed its acquisition of 14 commercial properties in Atlantic Canada, mainly office buildings, from Fortis Properties Corp. Valued at C $430 million, or approximately US $344 million, the deal nearly doubles the REIT's asset base and marks the exit of Fortis Properties' parent company, Forts Inc., from commercial real estate.
The portfolio comprises 10 office buildings, one mixed-use office complex and three retail centers totaling 2.8 million square feet of GLA. Notable regional addresses include Maritime Centre in Halifax, Nova Scotia; the Blue Cross Centre in Moncton, New Brunswick; and Fortis Place in St. John's, Newfoundland.
As part of the acquisition, Slate entered into a strategic co-ownership agreement with a Canadian institutional real estate fund, in which the REIT acquired a 10% interest in three of the properties and the co-owner acquired a 90% interest. The REIT's proportionate interest in the portfolio therefore comprises 2.5 million square feet of GLA.
"The sale of Fortis Properties' commercial real estate is the result of a strategic review process and is consistent with our focus on our core utility business,” Barry Perry, Fortis' president and CEO, said in May when the deal was first announced. “The review process for the hotel business is ongoing.” One hotel property was included in the sale to Slate: the Delta Brunswick hotel, part of the Brunswick Square office complex in Saint John, New Brunswick.
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