HOOPP Realty Inc., a subsidiary of the Healthcare of Ontario Pension Plan, has entered into an agreement to buy a 50 per cent interest in the TransCanada Tower in Calgary from H&R Real Estate Investment Trust for $257.4 million.
According to a press release, the property has almost doubled in value since its construction by H&R in 2001.
Read: Sounding Board: Funded status tells the DB story
“We are pleased to be partnering with HOOPP, one of Canada’s premier pension funds and look forward to the beginning of a successful and long-term relationship,” said Thomas Hofstedter, H&R’s president and chief executive officer, in a release.
“The selling price and capitalization rate of this property validates our strategy of acquiring high quality properties leased long-term to creditworthy tenants.”
The transaction is expected to close in November 2016.