One of the largest skyscrapers in the downtown Toronto landscape, Scotiabank is considering selling off its Scotia Plaza tower on Bay Street for $1 billion. Analysts say this could be the largest commercial real estate deal in Canada.
Canada’s second-tallest commercial skyscraper is about to go on the market. Although officials say they are in the very preliminary stages, the Bank of Nova Scotia is considering selling off its 68-storey Scotia Plaza tower that is located in Toronto’s financial district on Bay and King Streets.
The Globe and Mail report suggests that this possible sale is part of the bank’s core review process. If anyone is interested in purchasing its red headquarters, be ready to sign a cheque for approximately $1 billion.
With the housing bubble persisting in Toronto, commercial properties are also setting highs in various downtown cities not just in Toronto but across the country. Low interest rates are helping not only residences but also property owners who want to acquire offices in prime locations.
If the deal is successful, the commercial real estate deal will more than double the original record holder, which was $400 million for a single office space. Who would possibly buy the red granite tower? Sources tell news outlets that a pension fund is most likely to be the purchaser.
“In the current low-interest rate environment, it's potentially a good time to sell and we have chosen to explore the sale of Scotia Plaza,” said Ann DeRabbie, a Scotiabank spokesperson, in an email to CBC News. “We are at a very early stage in this process.”
“We are the only large bank that currently owns our head office in downtown Toronto and given market conditions, this could be an opportune time to maximize the value from our holdings,” added the spokesperson.
Scotiabank has been operating out of the building since 1988.