Auto parts giant Magna International Inc. has for now scrapped plans to move out of its chateau-like headquarters in Aurora, Ont., to a new head office in nearby King City.
The lease on the Aurora property has been extended to 2022 by Magna's landlord, Granite Real Estate Investment Trust, the former real estate arm of Magna that was spun off in 2011 and now owns the land under dozens of the company's plants, as well as some office properties.
The extension of the lease "provides Magna an opportunity to monitor the macro-economic conditions impacting the automotive industry and to continue evaluating our future needs," the auto parts company said in a statement.
The original plan was to consolidate the corporate head office and head offices for some of Magna's group companies in one location that would also house a research and development centre and be home to more than 600 employees.
Magna was scheduled to move into the new head office by the end of next year.
Granite said in a statement that the headquarters in Aurora – often referred to as the royal palace for its opulence – is one of three properties near Toronto that Magna was expected to vacate.
The combined annual rents for the three properties will amount to $6.5-million, it said.
Granite said the extension of the head office lease is among changes affecting 15 properties, which account for 7.5 million square feet or 25 per cent of the income-producing portfolio the company holds.