Anbang is nearing an agreement to purchase a 30-storey office and retail tower in downtown Toronto for C$530 million ($395 million), sources told Bloomberg. Should a deal be finalized, it would be the state-owned insurer’s third major Canadian purchase in a little over a year.
The 84,960 square meter building is owned by development and investment firm Canderel and pension-fund manager OPTrust. Major office tenants include the Government of Ontario and the Bank of Montreal, with the commercial tower’s office space currently said to be 96 percent leased out.
People familiar with the negotiations told Bloomberg that Canderel and OPTrust had only intended to sell half of their stakes in the 33-year old complex, but Anbang went ahead and bid for the entire property.
Anbang chairman Wu Xiaohui made history in October of last year when he completed what was believed to be the first major investment in a stabilized real estate asset in Canada by a Chinese investor, acquiring a 17-storey tower in Toronto’s financial district.
The insurance giant paid Canadian alternative investment firm Brookfield Asset Management C$110 million ($84.2 million) for the office building outbidding at least ten domestic competitors in the process.
In February, the firm acquired a 66 percent stake in a vehicle that owns all four office towers at Bentall Centre, one of Vancouver’s most famous landmarks. The deal for the complex, which contains nearly 1.5 million square feet (139,354 square metres) of office space along with retail space, valued the property at more than C$1 billion ($729 million).
By Courtesy of Mintiandi