- Allied (AP.UN) has entered into an agreement to acquire the urban office component of Montréal’s Place Gare Viger from Jesta Group for $121.4 million
- Jesta Group has transformed Gare Viger, a heritage property, into a distinctive urban office, residential and hotel complex
- Gare Viger is a landmark property that includes one of the finest heritage buildings in Canada
- Jesta Group is an active investor and developer of iconic real estate assets
- Allied (AP.UN) is down 2.38 per cent and is trading at $44.74 at 12:21 pm ET
Allied Properties Real Estate Investment Trust (AP.UN) will acquire the urban office component of Jesta Group’s Place Gare Viger in Montréal.
Place Gare Viger is a mixed-use development located at the intersection of Old Montréal, Viger Square and the recently completed Centre Hospitalier de l’Université de Montréal (CHUM).
Over the last decade, Jesta Group has transformed Gare Viger, one of the finest heritage properties in Canada, into a distinctive urban office, residential and hotel complex.
Allied has entered into an agreement with Jesta Group to acquire the urban office component of the complex. Jesta Group will retain the urban residential and hotel components of the complex.
Allied and Jesta Group were brought together by CBRE Limitée.
“We’re sincerely grateful to Jesta and CBRE for making this collaboration possible,” said Michael Emory, Allied’s President & CEO.
“It will enhance Allied’s ability to provide distinctive urban workspace to knowledge-based organizations in Montréal and other Canadian cities, which is our mission in life. I also believe it will contribute to making Place Gare Viger one of the finest mixed-use urban neighbourhoods in our country,” added Emory.
Located at 700 Rue Saint-Antoine East and 755 Rue Berri, Gare Viger is a landmark property that includes one of the finest heritage buildings in Canada.
Completed in 1898 by Canadian Pacific Railway, Gare Viger was built in the format of a traditional British railway hotel where the rail lines run directly into the lobby area. The structure is now comprised of 122,643 square feet of office and retail GLA adjacent to 21 surface parking spaces.
The Chateau is 95.7 per cent leased to users consistent in character and quality with Allied’s user base. The Chateau will continue to evolve as a premier Class I property under Allied’s management, along with 425 Viger, Nordelec, 5505 St-Laurent, 5445-5455 de Gaspé and others in Montréal and across Canada.
In the near term, Allied will use the office structure as swing space and continue to operate the parking facility. Allied’s plan for the property in the longer term is to develop a new building suitable for use by biotech and life-science users.
Jesta Group is completing the development of a new office building at 700 Rue Saint-Hubert, just behind Gare Viger.
The building is scheduled for completion in the second half of 2022. It will be comprised of approximately 145,743 square feet of GLA and 145 underground parking spaces and is approximately 24 per cent pre-leased to Novartis Pharmaceuticals Canada.
The purchase price for the property will be $121.4 million. The forward purchase is expected to close in the second half of 2022, subject to various conditions of closing.
Allied’s business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.
Jesta Group is an active investor and developer of iconic real estate assets worldwide with major developments and investments in hotel, residential, retail and industrial properties in London, Paris, Berlin, Montréal, Miami, Houston, Cannes and Juan-Les Pins.
Allied (AP.UN) is down 2.38 per cent and is trading at $44.74 at 12:21 pm ET.