Toronto’s Iconic Scotiabank Building located at 40 King St West has just been sold for a record $1.27 Billion Dollars! Rumors of foreign investors were silenced when the two local buyers were announced: Toronto’s Dundee Real Estate Investment Trust partnered with H&R Real Estate Investment Trust. Dundee is a major REIT behind many popular developments around Toronto’s Distillery District and others in partnership with local developers. This seems to be a sound investment for the buyers as 95.5% of the building is occupied with Scotiabank as the anchor tenant occupying 61% of the 2 million square feet available.
This is the highest price paid for a Canadian office tower but with massive demand for downtown commercial space the numbers aren’t surprising. Many major companies are moving their headquarters back to the core after fleeing to the burbs ages ago in search of less expensive land and rents.