Dundee acquires majority interest in Scotia Plaza

Dundee REIT has acquired two-thirds of the Scotia Plaza complex. H&R REIT holds the remaining one-third interest.

Dundee’s portion cost $844.3 million, and was funded through both public equity offering and a private placement of mortgage bonds. It also drew on existing credit facilities.

As a result of the equity and debt financing used to complete the acquisition, the company has maintained a conservative balance sheet, with 52% debt-to-gross book value.

“We have secured an attractive long-term financing at an interest rate of 3.21%,” says Michael Cooper, chief executive officer of Dundee REIT.

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