The company behind Canada’s largest office building has sold a number of downtown Toronto properties for $36 million (£24.1m), with some properties even going for a loss.
The office buildings, which include a former bank and a branch of Bank of Montreal, were purchased by Cadillac Fairview, the company behind the Eaton Centre.
They were then sold to Apex Canada, which runs several retail outlets in Toronto, including big box stores and smaller stores.
“Apex agreed to acquire these properties for the same or a better price than we sold them for a number of reasons,” said Nick Maniatis, a Cadillac Fairview spokesman.
“We always deal in dollars and cents. There is always a cost to be factored in with any transaction.
“The two relationships involved and the way they operate as separate entities – on top of us selling our interest – was really the most important reason.”
Owned by a trust, the buildings could go up for sale again next year as Cadillac Fairview looks to upgrade them.
If they do go on the market, they would be put up for sale by a different company controlled by Cadillac Fairview.
The buildings were purchased on a 99-year lease, so even though they are now owned by Apex, they are still owned by the trust.
“The whole idea behind a 99-year lease is it allows us to have the greatest flexibility and flexibility is the very word you would use,” said Mr Maniatis.
“Apex is a single entity, the entire time the building was owned by Cadillac Fairview, I can’t even mention the exact name of the trust, and we sold those buildings, which is the most part or all the capital raised, to the right partner for the right reason.”