Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Office sale

[impega]

https://renx.ca/artis-reit-sells-downtown-winnipeg-220-portage-office-tower

[REITman]

Ouch!  Apparently Artis paid $20.5 million for 50% of the complex ten years ago, then later exercised an option to purchase the other half (presumably for the same amount or more), then sank a ton of money into renovations.  With the sale price in the $30 million range, this looks like a terrible ending to a really sad story. The decision to purchase the complex happened before Samir

[houbahop]

"Ouch!  Apparently Artis paid $20.5 million for 50% of the complex ten years ago,.." This complex you are referring to is the 295 Garry Avenue building. Artis sold the 220 Portage Avenue building for around $30m.

[rad10]

Yep!  I was too early getting in to this name with Sandpiper.  Should have waited a year to see where the chips fell.  Sitting on a 25% capital loss - unrealized.  Pref shares have more than made up for this.   I normally cut losses early, but I have confidence in this turnaround.  In Samir we trust......  kind of.... Rach

[REITman]

According to the RENX article, the Portage building and Garry Ave building were both bought and sold as a set, and Artis took an absolute shellacking on the round trip.  Perhaps the article is wrong.  Hopefully we'll get a press release from Artis soon and it will be more clear.

[houbahop]

After reading the article once again, I conclude your are absolutely right unless the article was badly written. The $30m sales price would be for both buildings and not only the 220 Portage. If this is the case, Artis would have lost arounf 40% of its investment including the various capital upgrades. I wonder how they can reduce the gap between the unit price and the NAV/unit when taking such a

[garyreins]

Maybe office was dumped at that big discount to get dream office at a similar discount 

[jmkOttawa]

You will remember that NAV was just under 20 dollars at one point. Cap rate expansion due to rising rates and poor office performance means that they likely sold for current IFRS values and are buying back shares at a discount to IFRS value of close to 50 per cent. The sale makes perfect sense under the circumstance. At the time the properties were valued much higher, the unit was trading in the