Chinese buy Toronto tower
Angbang pays C$110m for 17-story structure
China’s Anbang Insurance Group Inc has paid C$110 ($75 million) for a 17-story tower in Toronto’s financial district, and Chinese have reportedly purchased a small office tower in downtown Vancouver for $122 million.
Anbang is purchasing the property at 70 York Street from Canada’s Brookfield Asset Management after a heated auction in which there were bids from about 10 parties, many of them Canadian pension plans, people close to the situation said, the Financial Times reported Aug 1. Anbang will also assume $40 million in debt, the newspaper said.
The Financial Post reported on Oct 1 that Chinese acquired the 212,000 square foot United Kingdom building at 409 Granville Street. The deal has yet to close, so details remain scarce other than that the was from mainland China, according to the report in the business section of the National Post newspaper.
“It sold for more (than) $600 a square foot,” said one source, who said that might be 50 per cent more than the going rate for similar office buildings in the area, according to the report. “When I heard the number, I thought ‘no way.’ But the thing is it’s right on top of a SkyTrain station. I think the Chinese are buying the land for speculation as much as the building.”
Anbang paid $1.95 billion for the Waldorf Astoria Hotel in New York a year ago, and also acquired a Fifth Avenue office building in midtown Manhattan’s Plaza Hotel district.
The Canadian tower, known as the HSBC Building, was built in the 1990s and was owned by Brookfield Canada Office Properties, a Toronto-based unit of Brookfield Asset Management, according to Bloomberg News. In December 2012, the company refinanced the debt on the building for $45 million with a 10-year term.