The deal is one of the largest Canadian property deals to date and involves developments in Ottowa, Calgary, Edmonton and Calgary.
Overall Dundee is spending CAD 831.8 million for all 29 properties. The deal stipulates that Dundee sell on one-third of the office space to a third party. It is expected that the deal will close on August 15th.
TD Securities and Brookfield Financial Advisors advised Dundee on the transaction, and Blackstone was advised by CIBC World Markets.
Meanwhile, a recent survey by the Real Property Association of Canada has found that confidence in the Canadian commercial property market remains high, especially when compared to its counterpart in the US.
The survey measures the market’s direction on a scale of 1 to 100, with any score over 50 reflecting a positive outlook on the market. In the most recent survey, the Canadian commercial property market measured a score of 66.
This is the eighth quarter in a row that the market has garnered a positive outcome from the survey.
The market is largely viewed as stable and attractive, which bodes well for future investment and development,” said the report.
“Ultimately, the recovery Canada has experienced is now maturing.”
One respondent to the survey said: “Interest rates are low, job creation is good, and there’s growth in the market. I’m still surprised by the strength of the market.”
However, another respondent warned that the positive figures could be a sign that the market is experiencing a bubble.
“Prices are suspiciously high in comparison to fundamentals,” the respondent said.
Editor’s notes: In May 2014, Dundee REIT changed its name to Dream Office REIT.
Between August 2011 and i2019, Dream Global REIT achieved a total return of 214 per cent. In 2019, the REIT was sold to Blackstone.