Allied Properties REIT agreed to acquire a class I office complex in Montreal for C$276 million.
The 1990s built property at 747 Square-Victoria St. comprises 519,574 square feet of office gross leasable area, 43,015 square feet of retail gross leasable area and 858 underground parking spaces. It offers future development opportunity for an additional roughly 60,000 square feet of office space.
The complex is 90.7% leased with a weighted-average lease term in excess of six years.
Allied will fund the acquisition cost on an essentially leverage-neutral basis with its recently completed equity offering. The company expects the transaction to be immediately accretive to its funds from operations and adjusted FFO per unit.
The office complex will be free and clear of mortgage financing upon closing of the transaction, according to a release.
The agreement remains subject to regulatory approval.