Brookfield Property Partners LP sold a 50% passive stake in the Bay Adelaide Centre in Toronto to U.K.-based VPMA Bay Adelaide Property Ltd. for $850 million, CoStar News reported, citing property transfer documents sent to Dadco Investments Ltd.
The transaction, billed as the largest commercial real estate deal thus far in 2018, does not include the Bay Adelaide Centre North office development and values the existing 2.2 million-square-foot, class AAA office complex at $1.7 billion, according to the media outlet. Included in the deal were the Bay Adelaide West and Bay Adelaide East office towers, a retail concourse and a 1,000-stall parking facility.
CoStar, citing unnamed sources, noted that the existing structures were divested March 6 at a roughly 4.3% capitalization rate, excluding development rights at the complex.
With the sale of the property, reportedly placed on the market in October 2017, it is unclear whether the diversified commercial real estate company will continue with the development of the north tower, CoStar said.
RBC Capital Markets Realty Inc., Brookfield Financial Real Estate Group LP and TD Securities Inc., which were the advisers on the transaction, declined to comment on the matter. Brookfield and Dadco officials also could not be reached for comment, according to the report.
