Share in prized assets switching hands
The Ontario Teacher’s Pension Plan is selling a minority stake in its Vancouver portfolio to the Ontario Pension Board and the Workplace safety and insurance Board, according to multiple sources.
Tenants at 701 West Georgia st. in Vancouver were issued an estoppel certificate this month, indicating there had been a change in ownership at the building, one of the many put on the block by Cadillac Fairview Corp., Teachers’ real estate arm.
Bloomberg news reported in august that the pension fund was looking to shed a minority interest in its $4-billion Vancouver portfolio of office buildings and malls, including Pacific Centre.
“The sale makes perfect sense. Cadillac was not going to sell to a sovereign wealth fund,” said one source.
“They wanted a passive investor like OPB. it’s business as usual for them selling to someone like that. you are talking about some of the best real estate in downtown Vancouver.”
Bloomberg reported the Cadillac portfolio for sale included 14 properties in downtown Vancouver and richmond. among the key assets is the 1.6 million square foot Pacific Centre and its eight office towers comprising 2 million square feet, including 701 West Georgia st.
CB richard ellis, which had the co-listing, would not confirm the sale or the properties involved. sources indicate that Cadillac was looking to off-load between a 25 per cent to 40 per cent stake in its Vancouver holdings. The deal has not closed, according to sources.
another source suggested while the deal was heavily marketed there was an incentive to sell to another domestic buyer. Vancouver has seen an influx of foreign buyers into its commercial market in 2016.
“They did the right thing but they also got the right price,” said a source.
“These type of Triple-a assets are the domain of the pensions, and to the extent they can circulate them among themselves, they will list them.” email@example.com Twitter.com/dustywallet
Shoppers are seen outside the Pacific Centre shopping mall in Vancouver, B.C. The Ontario Teacher’s Pension Plan is selling its minority stake in the property.