[Editor's Note: This article was updated on November 12 to include information about the purchaser.]

On Thursday, Toronto-based Slate Office REIT (TSX: SOT.UN) published their Q3 2024 results, revealing that they had completed the sale of the Woodbine & Steeles Corporate Centre in Markham, Ontario.


Also known as the Woodbine Corporate Centre (WCC), the property consists of five buildings situated at the northwest corner of Woodbine Avenue and Steeles Avenue East: three office buildings at 7030, 7050, and 7100 Woodbine Avenue; a flex office building at 55 Idema Road; and an industrial building at 85 Idema Road.

The property consists of a total of 359,563 sq. ft of space and was constructed in 1984 before being renovated in 2011.

According to Slate Office REIT, they sold the Woodbone Corporate Centre for $39 million at share, subsequent to Q3. A quarterly report also published this week indicated that Slate Office REIT held a 75% interest in the property as of September 30, 2024. The holder of the remaining 25% interest was not disclosed. Slate also did not disclose the buyer, but the property was acquired by Smart Investments Ltd. in a deal that was financed by CFO Capital.

The Woodbine & Steeles Corporate Centre from along Woodbine Avenue, as of August 2024.The Woodbine & Steeles Corporate Centre from along Woodbine Avenue, as of August 2024. / Google Maps

In August 2023, the REIT announced that it had refinanced a $45.3 million mortgage on the property with a two-year $50 million mortgage. A few months later, in November, the REIT then announced a Portfolio Realignment Plan to "reposition the REIT’s portfolio for long-term stability and performance and raise liquidity to reduce the REIT's borrowings."

Then, this June, Slate Office REIT revealed that it had received notices of default from its senior lenders and said that "there can be no assurance if or when a cure or waiver in respect of such defaults will be achieved."

In Thursday's announcement, the REIT said it "continues to have significant discussions with certain of its lenders to resolve current defaults and refinance the REIT's debt to more favourable terms."

In addition to the Woodbine & Steeles Corporate Centre, the REIT announced on Thursday that it has also sold the office building at 114 Garry Street in Winnipeg, Manitoba for $14.3 million and has completed nearly $103 million in dispositions, year-to-date, as of November 7.

Slate Office REIT's Portfolio

Following the sale, Slate Office REIT's Ontario portfolio now consists of the following seven properties:

  1. 3000-3100 Steeles Avenue East ("Gateway Centre" in Markham)
  2. 2285 Speakman Drive (Mississauga)
  3. 2599 Speakman Drive (Mississauga)
  4. 2251 Speakman Drive (Mississauga)
  5. 1189 Colonel Sam Drive (Oshawa)
  6. 185-195 The West Mall ("West Metro Corporate Centre" in Toronto)
  7. 401-405 The West Mall ("Commerce West" in Toronto)

The Ontario properties total to 1,748,204 sq. ft, with the two largest properties being the West Metro Corporate Centre (618,003 sq. ft) and Commerce West (412,464 sq. ft) in Toronto.

Slate Office REIT also owns four properties in the Prairies, 11 in Atlantic Canada, three properties in Chicago, and 22 properties in Ireland, for a total of 6,634,229 sq. ft, including Ontario.

"The REIT revalued its property portfolio as at September 30, 2024, which resulted in a $175.4 million negative fair value adjustment in the third quarter as a result of the REIT's own estimates and property sales," the REIT said on Thursday.

Last month, the REIT also received 180-day notice from its external manager, Slate Asset Management, that they were terminating their management agreement. The two parties are now working on transitioning the REIT to internal management, which is expected to lower costs.

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