![Caisse to sell some real estate assets for $1.5 billion](https://www.benefitscanada.com/wp-content/uploads/sites/7/2012/09/new-media21.jpg)
Ivanhoé Cambridge, the real estate subsidiary of Caisse de dépôt et placement du Québec, has signed an agreement to sell 15 properties for $1.53 billion to Cominar Real Estate Investment Trust (REIT).
The portfolio of properties located in Ontario and Quebec comprises about 5.7 million square feet of gross leasable space. It consists of 11 retail properties, three office buildings (including one property under development), and one industrial and mixed-use property.
To help finance the deal, Cominar will issue $500 million of new units, including a $250-million portion to be purchased by Ivanhoé Cambridge. Otéra Capital, the commercial real estate financing subsidiary of the Caisse, is also involved in the financing for $250 million.
After the transaction, Ivanhoé Cambridge will own approximately 8.5% of Cominar’s units and will be the REIT’s largest unitholder.
“This transaction allows us to reach a key milestone in the implementation of our business plan for the commercial sector, which calls for more strategic focus,” says Daniel Fournier, Ivanhoé Cambridge’s chairman and CEO. “As we have chosen to focus on our super-regional shopping centres, among others, Cominar possesses the right expertise to ensure the future success of the properties we are selling them.”
The approximately 120 Ivanhoé Cambridge employees working at the properties involved in the transaction will be transferred to Cominar.
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