Allied Properties Real Estate Investment Trust says it has signed a deal to sell its urban data centre portfolio in downtown Toronto to Japanese telecommunications company KDDI Corp. for $1.35 billion.
The portfolio includes freehold interests in 151 Front St. West and 905 King St. West and a leasehold interest in 250 Front St. West.
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KDDI owns and operates data centres in Asia, Europe and the United States through its subsidiary, Telehouse.
The sale is expected to close before the end of the third quarter this year.
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It is subject to Competition Act approval and customary closing conditions.
Allied says it will use about $1 billion of the sale proceeds to retire debt and the rest to pay for upgrade and development activity over the rest of 2023 and into 2024.
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