October 22, 2001
Slough Estates has completed the sale of its industrial estates in Toronto to purchasers Great-West Lifeco Inc and Summit REIT. The gross proceeds of £145 million (@ C$2.26 : £1) compare with a book valuation of £142 million. Disposal expenses, the costs of transferring the Toronto office with some 40 staff to the purchasers and other account settlements should amount to approximately £9 million.
The early termination and mark to market of Canadian dollar debt should cost approximately £3 million.
Nine industrial estates comprising 5.6 million sq.ft. of predominantly industrial space have been sold, the largest being the 1.7 million sq.ft. Malton estate built in the 1960's/1970's. More recent developments of the 1990's included the estates at Mississauga, Goreway and Oakville which totalled 2.1 million sq.ft.
Although Slough’s Toronto properties, under local management, have performed well compared with the Canadian market over the last ten years, the total returns did not match those realised elsewhere in Slough’s portfolio.