On Thursday, Toronto-based Slate Workplace REIT (TSX: SOT.UN) printed their Q3 2024 outcomes, revealing that they’d accomplished the sale of the Woodbine & Steeles Company Centre in Markham, Ontario.
Often known as the Woodbine Company Centre (WCC), the property consists of 5 buildings located on the northwest nook of Woodbine Avenue and Steeles Avenue East: three workplace buildings at 7030, 7050, and 7100 Woodbine Avenue; a flex workplace constructing at 55 Idema Highway; and an industrial constructing at 85 Idema Highway.
The property consists of a complete of 359,563 sq. ft of house and was constructed in 1984 earlier than being renovated in 2011.
Based on Slate Workplace REIT, they bought the Woodbone Company Centre for $39 million at share, subsequent to Q3. A quarterly report additionally printed this week indicated that Slate Workplace REIT held a 75% curiosity within the property as of September 30, 2024. The holder of the remaining 25% curiosity and the client weren’t disclosed.
The Woodbine & Steeles Company Centre from alongside Woodbine Avenue, as of August 2024. / Google Maps
In August 2023, the REIT introduced that it had refinanced a $45.3 million mortgage on the property with a two-year $50 million mortgage. Just a few months later, in November, the REIT then introduced a Portfolio Realignment Plan to “reposition the REIT’s portfolio for long-term stability and efficiency and lift liquidity to cut back the REIT’s borrowings.”
Then, this June, Slate Workplace REIT revealed that it had obtained notices of default from its senior lenders and stated that “there might be no assurance if or when a treatment or waiver in respect of such defaults shall be achieved.”
In Thursday’s announcement, the REIT stated it “continues to have important discussions with sure of its lenders to resolve present defaults and refinance the REIT’s debt to extra beneficial phrases.”
Along with the Woodbine & Steeles Company Centre, the REIT introduced on Thursday that it has additionally bought the workplace constructing at 114 Garry Avenue in Winnipeg, Manitoba for $14.3 million and has accomplished practically $103 million in tendencies, year-to-date, as of November 7.
Slate Workplace REIT’s Portfolio
Following the sale, Slate Workplace REIT’s Ontario portfolio now consists of the next seven properties:
3000-3100 Steeles Avenue East (“Gateway Centre” in Markham)2285 Speakman Drive (Mississauga)2599 Speakman Drive (Mississauga)2251 Speakman Drive (Mississauga)1189 Colonel Sam Drive (Oshawa)185-195 The West Mall (“West Metro Company Centre” in Toronto)401-405 The West Mall (“Commerce West” in Toronto)
The Ontario properties whole to 1,748,204 sq. ft, with the 2 largest properties being the West Metro Company Centre (618,003 sq. ft) and Commerce West (412,464 sq. ft) in Toronto.
Slate Workplace REIT additionally owns 4 properties within the Prairies, 11 in Atlantic Canada, three properties in Chicago, and 22 properties in Eire, for a complete of 6,634,229 sq. ft, together with Ontario.
“The REIT revalued its property portfolio as at September 30, 2024, which resulted in a $175.4 million destructive truthful worth adjustment within the third quarter because of the REIT’s personal estimates and property gross sales,” the REIT stated on Thursday.
Final month, the REIT additionally obtained 180-day discover from its exterior supervisor, Slate Asset Administration, that they had been terminating their administration settlement. The 2 events at the moment are engaged on transitioning the REIT to inside administration, which is anticipated to decrease prices.
