Slowdown in credit growth to impact Canadian banks’ prospects

Oxford Properties and co-investor CPP Investments are exploring the sale of Royal Bank Plaza in Toronto.

The property management company said it has hired RBC Capital Markets and CBRE to pursue a potential sale of the plaza located at 200 Bay St. According to a report from Bloomberg, the owners are seeking more than US$1 billion.

Randy Hoffman, senior-vice president of Oxford’s Canadian business, said his company is exploring the sale because it wants to capitalize on demand for well-leased and located offices and continue to diversify its holdings.

Oxford has owned the plaza since 1999 and, in 2005, CPP Investments became a co-investor.

Oxford said the plaza includes more than 139,354 square metres of space across two towers and a retail concourse.

Royal Bank of Canada leases 40% of the space, the property manager said. The Bloomberg report said RBC intends to stay in the buildings even with most employees working remotely.