(February 1 – 16:15 ET) – CIBC today announced that the sale of its portfolio of seven office properties to the British Columbia Investment Management Corporation for $860 million will proceed. Closing of the sale is set for April.
The total package represents 3.9 million square feet of leasable space in the seven office buildings located in Vancouver, Edmonton, Hamilton, Montreal, Oshawa and Toronto. Under the terms of sale, CIBC will lease back the majority of the space it presently occupies in the seven buildings, including Commerce Court in Toronto.
The sale of the seven properties will result in a gain of approximately $329 million. Of this amount, approximately $180 million will be recognized in the second quarter. The remaining gain, says the abnk, relates to that portion of the premises which will continue to be occupied, deferred and amortized over the approximately 10-year average term of the related leases.
-IE Staff