Canada’s hot commercial real estate market stays sky high.
The iconic Royal Bank Plaza in downtown Totonto has found a buyer. Amancio Ortega, the billionaire behind the Zara clothing chain, has agreed to buy Toronto’s RBC’s Plaza skyscraper from two Canadian pension funds for about C$1.2 billion.
The sale of the iconic, gold-clad tower in the heart of Canada’s financial capital is among the biggest transactions for an office building globally since the start of the Covid-19 pandemic. It’s being sold by Oxford Properties, the real estate arm of Ontario’s pension fund for municipal workers, and Canada Pension Plan Investment Board.
A representative for Ortega’s family office confirmed the transaction to Bloomberg News. The funds put the property up for sale last year and had been seeking at least C$1 billion.
Differentiated by its striking architecture and gold façade, the Complex is one of Toronto’s most recognizable landmarks. Over the past 10 years, the institutional owners have overseen a $76.4-million modernization program that has delivered award winning updates.