Canada’s hot commercial real estate market stays sky high.

Zara’s billionaire owner to buy RBC Plaza

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.

The Plaza

Royal Bank Plaza

Royal Bank Plaza is one of North America’s preeminent core office complexes, totaling close to 1.5 million square feet across two iconic, award-winning office towers and an urban retail concourse. The Complex features 1.35 million square feet of Class AAA office space, a 34,100 square foot bank branch at street level and a two-storey concourse with 90,500 square feet of complementary retail.[1]

Located at the corner of Bay Street and Front Street West, the Complex spans a 3.15-acre site in the heart of Toronto’s Financial Core and benefits from a prominent, strategic location immediately adjacent to Union Station—Canada’s busiest transit hub.[2]

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.

References

References
1 Bloomberg
2 RBC
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