It says it is also selling an effective 45 per cent stake in future rent from gas producer Ovintiv Inc. to Deutsche Bank Credit Solutions and Direct Lending for gross proceeds of $418 million.
The REIT says the deal will reduce its Calgary office exposure from nine per cent to three per cent and reduce Ovintiv Inc. s representation in its rental portfolio from 12 per cent to two per cent.
The REIT says it will retain 15 per cent of net rent from a lease held by Ovintiv, previously known as Encana Corp., and will hold onto the Bow and Bell campus management contracts, which it valued at roughly $203 million.
H&R REIT sells Bow, Bell campus buildings, reducing exposure to Calgary market
A pedestrian walks past The Bow building in Calgary, Alta., Thursday, Oct. 31, 2019. H&R Real Estate Investment Trust says it is selling two of its properties, including the Bow office tower in Alberta, as it tries to limit its Calgary office exposure. THE CANADIAN PRESS/Jeff McIntosh August 03, 2021 - 2:47 PM
TORONTO - H&R Real Estate Investment Trust says it is selling two of its properties, including the Bow tower in Calgary as it tries to limit its office exposure in the city.
The REIT says it is selling the Bow building and land, partial future rent from a lease with Ovintiv Inc., and a Bell office campus in Mississauga, Ont. to Oak Street Real Estate Capital for combined gross proceeds of about $1.05 billion
H&R REIT sells Bow, Bell campus buildings, reducing exposure to Calgary market - Business News castanet.net - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from castanet.net Daily Mail and Mail on Sunday newspapers.
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Try refreshing your browser. The Bow office tower sold in $1.67B deal Back to video
H&R REIT has sold the distinctive, 58-storey downtown property to affiliates of Chicago-based Oak Street Real Estate Capital, it said in a release.
H&R will receive 15 per cent of net rent from the tower’s primary tenant, U.S.-based energy company Ovintiv, under a lease that continues until 2038. It will also retain ownership of lands adjacent to the two-million-square-foot tower.
The total value of the Bow tower sale is about $1.2 billion, or $608 per square foot, including a lease transfer to Deutsche Bank Credit Solutions and Direct Lending valued at $418 million.
Calgary s Bow tower to be sold as part of $1 67B deal cbc.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cbc.ca Daily Mail and Mail on Sunday newspapers.