TORONTO, Aug. 20, 2015 /CNW/ - Cadillac Fairview has entered into a binding agreement to sell a 30% non-managing interest in the Toronto-Dominion Centre (TD Centre) to the Ontario Pension Board (OPB).
TD Centre is Canada's most iconic office complex, comprising approximately 4.5 million square feet of AAA office and retail space, spread over six towers in the heart of Toronto's Financial District.
Concurrent with the partial sale of TD Centre, Cadillac Fairview has also agreed to sell OPB a 30% interest in an office development site at 16 York Street in Toronto. The proposed development will consist of a 32-storey Class A LEED® Platinum office tower with approximately 850,000 square feet of leasable area.
"As the TD Centre is a cornerstone asset within Cadillac Fairview's office portfolio, finding an appropriate co-investor was a critical consideration," according to John Sullivan, President and CEO of Cadillac Fairview.
These transactions build on a strong partnership between Cadillac Fairview and OPB, who currently co-own two properties in downtown Toronto, RBC Centre and a development property at 156 Front Street West.
"OPB is delighted to be acquiring an interest in a world-class asset with a world-class partner such as Cadillac Fairview," said Mark Fuller, Ontario Pension Board President and CEO. "This is a great opportunity to own a share of a landmark asset with quality tenants and is fully aligned with our strategy to increase our exposure to private market investments, such as real estate, private equity, and infrastructure, by partnering with leading institutions."
TD Securities Inc. acted as exclusive financial advisor to Cadillac Fairview on these transactions, while Davies Ward Phillips & Vineberg LLP is acting as Cadillac Fairview's legal advisor.
CBRE Limited acted as Ontario Pension Board's financial advisor, while Blake, Cassels & Graydon LLP is acting as OPB's legal advisor.
These transactions are subject to customary closing conditions and are expected to close on October 1, 2015.
About TD Centre
As part of Cadillac Fairview's ongoing commitment to environmental sustainability and providing best-in-class services to its tenants, the Centre has benefitted from significant reinvestment over the past several years. All six towers are now certified to LEED® level Platinum or Gold.
TD Centre's commitment and leadership in sustainability has been recognized through various industry awards, including being named the 2013 winner of the Green Award of the Year at the Real Estate Excellence (REX) Awards Gala in Toronto and CivicAction's Greening Greater Toronto recognized TD Centre's South Tower with the Greatest Energy Reduction Award for 2014.
About Cadillac Fairview
Cadillac Fairview is one of North America's largest owners, operators and developers of commercial real estate. Cadillac Fairview focuses on developing and managing high quality office, retail and mixed-use properties in Canada and the United States, as well as international investments in real estate companies and investment funds.
With a portfolio valued at more than $28 billion, Cadillac Fairview and its affiliates own and manage over 36 million square feet of leasable space at 66 properties across North America, including some of Canada's landmark developments, such as Toronto Eaton Centre, Pacific Centre and Chinook Centre.
Cadillac Fairview is wholly-owned by the Ontario Teachers' Pension Plan, which invests to secure the retirement income of 311,000 active and retired teachers in Ontario.
About Ontario Pension Board
Ontario Pension Board administers Ontario's Public Service Pension Plan, a defined benefit pension plan serving more than 42,000 members and their employers as well as more than 40,000 pensioners and deferred members. With more than $23 billion in assets, it is one of Canada's largest pension plans. Over the last 20 years, Ontario Pension Board has become one of Canada's leading direct owners of high quality commercial real estate.
SOURCE Cadillac Fairview Corporation Limited
Image with caption: "The TD Centre, Canada's iconic office complex, as seen at night (CNW Group/Cadillac Fairview Corporation Limited)". Image available at: http://photos.newswire.ca/images/download/20150820_C5559_PHOTO_EN_480951.jpg
Image with caption: "The TD Centre - Canada's iconic office complex at King and Bay in Toronto (CNW Group/Cadillac Fairview Corporation Limited)". Image available at: http://photos.newswire.ca/images/download/20150820_C5559_PHOTO_EN_480953.jpg
For further information: Janine Ramparas, Senior Manager, Corporate Communications, Cadillac Fairview, firstname.lastname@example.org, 416-598-8645; Peter Shena, Executive Vice President, Stakeholder Relations, Ontario Pension Board, email@example.com, 416.601.4050