Quebec-based Cominar Real Estate Investment Trust (REIT) has announced that it will be selling a number of its non-core properties to Slate Acquisitions for a total $1.14bn, as a part of the company’s debt reduction plan.
Cominar intends to streamline its portfolio with a key focus on its core markets within Quebec and Ottawa, resulting in the sale of 97 of its properties in the Greater Toronto Area, Atlantic Provinces and Western Canada being sold.
Upon completion of the deal, the firm will no longer own any properties within these regions.
“We are very pleased with the successful execution of the disposition plan and the sale of our entire non-core market portfolio in one transaction,” said Michel Dallaire, Chairman of the Board of Trustees and Chief Executive Officer of Cominar. “This transaction will enable Cominar to capitalize on its core markets while also strengthening its balance sheet.”
As part of the transaction, Slate will assume approximately $107.1mn of mortgage debt, whilst Cominar will be required to repay $164.5mn of the outstanding mortgage debt.