The tower is one of the most recognizable in downtown Montreal, and a major component of the city’s skyline.
“The acquisition of this flagship property is a tremendous source of pride for the Groupe Petra/MACH joint venture,” said Patrice Bourbonnais, president and chief operating officer of Groupe Petra, in the announcement Monday afternoon. “Adding 1000 de la Gauchetière to our portfolio will reinforce our status as a key player in the Montreal commercial real estate market. It speaks to our determination to make an active contribution to the vitality of the downtown core and the success of the businesses that operate here.”
This was not the first attempt by Petra and MACH to acquire the property.
According to published reports in 2017, the two firms were negotiating with owner Ivanhoé Cambridge (a subsidiary of Caisse de dépôt et placement du Québec) to buy the building. However, the sale was not completed because they could not come to an agreement with the Archdiocese of Montreal, which owns the land on which it is built.
No financial details were immediately released, but the transaction is one of the most significant so far in 2021 in Canada. The parties have also not disclosed whether the purchase will include the land, or whether it will remain in the hands of the archdiocese.
The 1000 de la Gauchetière property
“Le 1000 is a huge plus for our portfolio, given the premium quality of the property and its tenant roster,” said MACH president Vincent Chiara in the announcement. “We are very proud to contribute to Montreal’s economic growth by making sure this central business district landmark stays in Quebec hands.
“Working closely with our partners at Groupe Petra, we will strive to uphold the tradition of prestige, performance and quality that Le 1000 is known for.”
1000 de la Gauchetière was constructed between 1988 and 1992 and contains more than 900,000 square feet of space. In 2017, the building was assessed at about $366 million.
The building architecture boasts an atrium which includes a year-round skating rink, topped by an immense glass dome. Le 1000 also serves as an intermodal transit hub, with an indoor bus terminal and direct access to the metro, commuter trains and the RÉSO underground pedestrian network. The building has a LEED Silver certification.
MACH and Petra have partnered on other major purchases in Montreal, including the January 2020 acquisition of the former Laurentian Tower, a 27-storey office tower at 1100 René-Lévesque West. The purchase price for that property was $225 million.
It is located beside the Bell Centre, Montreal’s main arena and entertainment centre and home to the NHL’s Montreal Canadiens.
About Groupe Petra
Groupe Petra owns and operates one of the largest portfolios of office and mixed-use buildings on the Island of Montreal.
its portfolio includes more than 10.2 million square feet of leasable area in 53 properties in greater Montreal, Quebec City and the Greater Toronto Area. Among the addresses in the portfolio are Place Victoria, La Tour CIBC and the Sun Life Building, which are owned as part of a joint venture with MACH.
Established in 2000, MACH is has a portfolio of over 150 properties representing more than 26 million square feet, with an additional 15 million square feet in development including Quartier des lumières. MACH’s services include real estate development, management, property services and construction.