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Greater Toronto Area (GTA) West Portfolio

Greater Toronto Area West Case Study Colliers International

Greater Toronto Area (GTA) West Portfolio, Ontario, Canada
$224 million

Introduction

We matched the right buyer and seller in the sale of 785,000 MSF of Class A office space, GTA West’s most prominent portfolio. Owned by Westbury International, the six buildings were built on a speculative basis and averaged 82 percent lease-up during construction.

The challenge

Westbury wasn’t motivated to sell since debt was minimal, revenue substantial and the assets more than 95 percent leased. Also, Westbury wanted to avoid a full investment sale process that might unsettle its tenant base.

The services

Collier sourced Fengate as a potential buyer who wanted a larger office footprint but not speculative construction. Colliers helped Fengate realize Westbury’s was the market’s best asset, in a transaction without any head leasing or major challenges. 

The results

The properties traded at a capitalization rate marginally lower than 6.25 percent.

Ontario’s second most important office deal of 2015 benefited both parties. Westbury moved through the transaction cycle without delay, and Fengate expanded its own portfolio along the QEW corridor and converted equity into an income stream overnight without taking on risk. Colliers created value for both parties in a market where many institutional buyers are cautious about suburban office product.

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