Allied Properties explores Toronto data center sale to retire debt

Chicago, Jan. 17 – Allied Properties Real Estate Investment Trust is exploring the sale of its network-dense, carrier-neutral, urban-data-center portfolio in downtown Toronto, according to a press release.

The company is seeking to “supercharge” its balance sheet if it sells the portfolio, according to Michael Emory, president and chief executive officer of Allied.

A significant portion of the sale proceeds would be used to retire debt, and the balance would be used to fund current development activity.

The portfolio sale would bring the REIT’s debt metrics squarely within target ranges, establishing a solid basis for further improvement as development completions contribute to earnings over the next few years.

Management expects the interest savings to offset fully the decline in earnings resulting from the sale of the portfolio.

Scotiabank is the company’s financial adviser.

Toronto-based Allied Properties is a real estate investment trust that owns, manages and develops office properties in Canada.

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