$1.3b is the internal valuation of the data centressnippet
Office property owner Allied Properties REIT is considering a sale of its data centre portfolio, a deal that would help the commercial landlord pay down debt as it retools for a new era of higher interest rates and hybrid working.
Allied, best known for its low-rise office buildings in downtown cores, currently owns three data centre properties in downtown Toronto, which are valued internally at $1.3-billion in total. The largest of these properties, 151 Front St., is a major telecom hub.
Data centres are not core to Allied’s property portfolio – they comprise 16 per cent of net operating income – but chief executive officer Michael Emory has long been bullish on them, in part because their industry is a relatively stable one that is always in demand, and Allied owned the premier facility in Canada.