TSX:SOT.DB - Post by User
Post by
Malpeque2on Oct 23, 2022 3:04pm
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Post# 35042174
Sclarda 95-105 Moatfield Drive.
Sclarda 95-105 Moatfield Drive.Sold for $97M. In Place Cap Rate of 6.4%. Build in 1982. Profit was $10.4M. When purchased by the REIT on March 2018 the two buildings were 100% leased. The buildings were purchased thru SLAM in a deal with Cominar to buy some properties and a few were "assigned" to Slate Office. The deal had to be approved by TSX, shareholders, and appraisals done by outside advisors with a "fairness" opinion.
On Sale it's a 12% gain. Over 4.5 years it's about 2.5% annual gain. 95 Moatfiled is 100% leased to Kraft Canada with a credit rating of BB+. 156k square feet.
On Sale 105 Moatfield is not fully leased, but it was at the time of purchase in 2018. The Building is also Built in 1982. 248K square feet. Thales Inc. has 220K plus square feet. Credit rating is BBB+.
All this info is from the company public Annaul Info forms over the period 2019-2022.
I fail to see how the sale of these properties at these prices isn't just transacting for the benefit of the Manager to earn transacting fees. It is not in keeping with the company objective of buying undervalued properties and improving the tenant roles, since we had two good quality credit tenants both under lease, and has lost some tenant(s) at 105 Moatfield since the acquisition thru SLAM. The property was better utilized when we bought it than it is now on sale, and the gain is fairly "slight" over the PP over 4 years ago.