A trio of real estate firms have struck a deal to buy the nearly 6.5-acre downtown Toronto site on which The Globe and Mail's headquarters sits.
The site near Front Street West and Spadina Avenue, which currently includes office space and parking spots, will be redeveloped into a large retail, office and residential complex.
It is being bought for $136-million by RioCan Real Estate Investment Trust and Allied Properties Real Estate Investment Trust, which will each hold 40 per cent, and Diamond Corp., which will own the remaining 20 per cent.
In a news release RioCan chief executive Edward Sonshine said the property is one of the largest underdeveloped contiguous parcels of land in downtown Toronto.
The deal is expected to close in December. The property is being sold by Osmington Inc. (David Thomson is the majority owner of Osmington. The Thomson family holds a controlling 85 per cent interest in The Globe and Mail through Woodbridge Co. Ltd. The Globe is moving to a new building on an adjacent site.).
Osmington had previously struck a deal with Mattamy Homes, which intended to put as many as seven or more condo towers on the property. But Mattamy backed away from the agreement amid increasing concern over the health of Toronto's condo market.