By Ketki Saxena
Investing.com -- Allied Properties REIT (TSX:AP_u) has announced the sale of its s urban data centre properties located in downtown Toronto to Japan-based telecommunications company, KDDI Corporation, for a total of $1.35 billion.
The proceeds from this sale will be strategically utilized by Allied Properties to strengthen its financial position and support future growth plans. Approximately $1 billion of the funds will go towards retiring existing debt, while the remaining amount is earmarked for upgrading and development initiatives throughout 2023 and into 2024.
Included within this valuable portfolio are freehold interests at two prime locations - 151 Front St. West and 905 King St. West - as well as a leasehold interest at 250 Front St. West property in downtown Toronto's bustling core.
The anticipated completion date for this transaction is scheduled for Q3, 2023, pending approval under Canada's Competition Act regulations and fulfillment of standard closing conditions.