Allied Properties Real Estate Investment Trust (TSX:AP.UN) entered into an agreement to acquire Gare Viger and adjacent developable land from Jesta Capital Corporation for approximately CAD 130 million on July 16, 2021. Jesta Group will retain the urban residential and hotel components of the complex. On closing, Allied will assume an existing first mortgage on Gare Viger in the principal amount of CAD 51.75 million, bearing interest at 2.8%, having a remaining term of just over three years and payable in blended instalments of principal and interest based on a 25-year amortization. Allied expects to fund the remaining CAD 76.45 million initially with Allieds operating line of credit and on a permanent basis with the proceeds from the sale of a small, non-core property in each of Montreal and Toronto. The acquisition of Gare Viger and adjacent developable land is expected to close in late August 2021, subject to customary conditions. Allied and Jesta Group were brought together by CBRE Limitée.
Allied Properties Real Estate Investment Trust (TSX:AP.UN) completed the acquisition of Gare Viger and adjacent developable land from Jesta Capital Corporation on August 31, 2021.