Allied Properties sells Toronto data center portfolio for $1.35 billion
TORONTO – Allied Properties Real Estate Investment Trust says it has signed a deal to sell its downtown Toronto urban data center portfolio to Japanese telecommunications company KDDI Corp. for $1.35 billion.
The portfolio includes ownership interests in 151 Front St. West and 905 King St. West and a leasehold interest in 250 Front St. West.
KDDI owns and operates data centers in Asia, Europe and the United States through its subsidiary Telehouse.
The sale is expected to be completed before the end of the third quarter of this year.
It is subject to the approval of the Competition Act and customary closing conditions.
Allied says it will use about $1 billion of the sale proceeds to pay down debt and the rest to pay for upgrade and development activities through the remainder of 2023 and into 2024.
This report from The Canadian Press was first published on June 21, 2023.
Companies in this story: (TSX:AP.UN)
