Allied to sell UDC portfolio to KDDI Corp for $1.35 bln (updated)

Allied Properties Real Estate Investment Trust

21/06/2023 11:13

(Details in paragraphs 2 & 3, advisers in paragraph 4)
       June 21 (Reuters) - Allied Properties Real Estate
Investment Trust  AP_u.TO  on Wednesday said it has entered into
an agreement to sell its urban datacenter portfolio to Japanese
telecommunications provider KDDI Corporation  9433.T  for $1.35
billion. 
    The portfolio comprises Toronto's 151 Front Street West and
905 King Street West, along with a leasehold interest in 250
Front Street West. 
    Allied will use around $1 billion of the sale proceeds to
retire debt and the balance to fund its upgrade and development
activity over the remainder of 2023 and into 2024, the company
said.
        Scotiabank, CBRE and Aird & Berlis LLP are advisers to
Allied for the transaction, while BofA Securities, Borden Ladner
Gervais LLP and Nishimura & Asahi are acting as advisers to
KDDI. 
  

 (Reporting by Pratyush Thakur in Bengaluru; Editing by Dhanya
Ann Thoppil and Pooja Desai)
 ((pratyush.thakur@thomsonreuters.com;))