Bloomberg News

Scotiabank Agrees to Sell Scotia Plaza for C$1.27 Billion

May 22, 2012

Bank of Nova Scotia agreed to sell its Scotia Plaza office complex in Toronto for C$1.27 billion ($1.24 billion) to two Canadian real estate trusts.

Dundee Real Estate Investment Trust (D-U) and H&R Real Estate Investment Trust (HR-U) agreed to buy the headquarters of Canada’s third-biggest bank, the lender said today in a statement. The sale is expected to close by June 20. Dundee would own two- thirds of the property, and H&R would have the rest.

Scotiabank has agreed to a lease agreement to keep the bank as the lead tenant of Scotia Plaza for “a number of years,” said Sabi Marwah, the bank’s chief operating officer. The complex has 2 million square feet of space.

Scotiabank said in January it planned to sell the 68-floor office building on King Street in the city’s financial district. The building is Canada’s second-tallest office complex after First Canadian Place, Bank of Montreal (BMO)’s headquarters.

Canadian pension funds including Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, and Alberta Investment Management Corp., had said they’d consider bidding for the Toronto property.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; David Scanlan at dscanlan@bloomberg.net


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