TORONTO--(BUSINESS WIRE)--Slate Office REIT (TSX: SOT.UN) (the "REIT") announced today that it has entered into an agreement to sell 225 Duncan Mill Road in the Greater Toronto Area for a sale price of $27.3 million. The REIT expects to use the net proceeds to reduce outstanding debt. This transaction remains subject to customary closing conditions and is expected to be completed in the second quarter of 2019.
“The disposition of 225 Duncan Mill Road is another example of the REIT’s ability to source and execute on transactions that generate meaningful returns for unitholders,” said Scott Antoniak, the REIT’s Chief Executive Officer. “This disposition will reduce leverage and create liquidity for new opportunities in the future.”
225 Duncan Mill Road Disposition Highlights
- The asset sale will occur at an attractive 19.5% or $4.5 million premium to the REIT’s purchase price in March 2018 and represents a levered internal rate of return of approximately 50%.
- This disposition will eliminate the REIT’s exposure to approximately 110,000 square feet of new vacancy at this asset in July 2019.
- In total, the REIT, in support of its capital recycling program, will have disposed of 7 properties in the past 12 months, for aggregate gross proceeds of $106.5 million.
About Slate Office REIT (TSX: SOT.UN)
Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 41 strategic and well-located real estate assets located primarily across Canada's major population centres including two downtown assets in Chicago, Illinois. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateofficereit.com to learn more.
About Slate Asset Management L.P.
Slate Asset Management L.P. is a leading real estate investment platform with over $6 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.