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‘Compelling investment offering’ for Bay Adelaide Centre

One of the most compelling investment offerings ever to come to market in Canada is available for...

One of the most compelling investment offerings ever to come to market in Canada is available for Toronto’s Bay Adelaide Centre.

Bay Adelaide CentreA brochure says the offering comprises 2.2 million square feet of class-AAA office space, consisting of the Bay Adelaide West office tower, Bay Adelaide East office tower, a PATH-connected retail concourse and a 1,000-stall parking facility, but excludes the Bay Adelaide North office development.

RBC Capital Markets Realty Inc., Brookfield Financial Real Estate Group LP and TD Securities Inc., who are listed as advisors on the offering, say this is a rare opportunity to partner with Brookfield Property Partners and acquire up to a 50 per cent non-managing interest in Bay Adelaide Centre.

The Bay Adelaide Centre

The brochure says the property is in a high-profile location in the heart of Toronto’s financial core and Bay Adelaide Centre occupies an entire city block.

According to the Brookfield website, Bay Adelaide Centre consists of two office towers: the West Tower (333 Bay Street) and the East Tower (22 Adelaide Street West).  The West Tower is 52 storeys and about 1.1 million square feet.

It opened its doors in 2009 and is certified LEED Gold (core and shell).  The East Tower, the newest addition to Brookfield’s Toronto portfolio, opened its doors in December 2015. It is 45 storeys, about one million square feet and certified LEED Platinum (core and shell).

Both towers are sophisticated and contemporary with ground-floor lobbies that are both vibrant and spacious, approximately three storeys tall, with an abundance of natural light, says Brookfield.

“The complex boasts two art commissions. The West Tower lobby showcases a light installation by award-winning artist James Turrell. Straight Flush is comprised of five individual panels of lights that constantly change. The East Tower lobby features the symmetrical and painstaking art installation of Micah Lexier ‘Two Circles,’ ” says Brookfield’s website.

“The West and the East Towers flank Arnell Plaza, a half-acre green space. Ginko trees and ornamental grasses frame the benches and open area, creating a pleasant respite for both tenants and visitors alike.

“Bay Adelaide Centre also offers a retail concourse of shops and eateries which is the final link to the underground PATH pedestrian walkway. The complex also features a four-level parking garage with entrance and exit from both Adelaide and Richmond Streets.”

The PATH and the property provides climate-controlled access to more than 50 office towers and 1,200 shops, restaurants and services.

The property also provides convenient access to transit, situated equidistant between TTC King Street and Queen Street subway stations, the King and Queen Streetcar lines and a short walk to Union Station.

The offering

The offering says the property has a world-class tenant roster and globally recognized firms, including Deloitte and KPMG, comprise 64 per cent of its tenant roster.

Bay Adelaide Centre offers long-term cash flow security, with an average weighted lease term of 10.6 years, with no major tenant expiries until 2025, explains the brochure.

“The offering provides a unique opportunity to partner with Brookfield Property Partners, a partner of global distinction, which owns and operates an irreplaceable portfolio of iconic properties located in the world’s most dynamic markets,” says the brochure.

Brookfield Property Partners

Headquartered in Toronto, Brookfield Property Partners has a long history in the Toronto market, and is recognized as a preeminent office building owner and manager.

“Interested parties will be required to execute and submit the vendor’s form of confidentiality agreement prior to receiving supplemental information on the property. A date for submissions will be communicated through the advisors, but is estimated to be late October 2017,” according to the brochure.

None of the advisors listed on the brochure could be reached for comment.

(Image courtesy of Brookfield Property Partners available on Google.)

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