Allied Properties REIT has entered into an agreement to sell its portfolio of five properties in Winnipeg, expected to close on December 18.
Along with the sale of the Metals Building in Edmonton this past October, total proceeds of both sales are worth $30 million.
The Winnipeg portfolio amounts to 343,083 square feet of fross leasable area and was 79.2 per cent leased as of September 30. It represented about 0.4 per cent of Allied’s net rental income.
The Metals Building is 22,503 square feet of GLA and was 30.9 per cent leased on September 30. Allied said the building didn’t contribute to its net rental income.
“We remain committed to selling our small number of non-core assets, and these sales represent progress in that regard,” said Michael Emory, president and CEO. “In addition to enabling us to redeploy capital profitably, exiting the Winnipeg market and disposing of the Metals Building will streamline our operations in Western Canada. We don’t intend to exit the Edmonton market, however, as our Boardwalk & Revillon Building is a premiere Class I property with significant value-add potential in Downtown Edmonton’s burgeoning ICE District.”
CBRE represented Allied in connection with the sale of the Metals Building, and Colliers International represented Allied in connection with the sale of the Winnipeg portfolio.