KDDI Canada, Inc. entered into an agreement to acquire Network-dense, carrier-neutral, urban-data-centre (UDC) portfolio in Downtown Toronto from Allied Properties Real Estate Investment Trust (TSX:AP.UN) for CAD 1.4 billion on June 21, 2023. The sale proceeds will be payable in cash. The sale is expected to close before the end of the third quarter this year, subject only to Competition Act approval and customary closing conditions. Allied will use approximately CAD 1 billion of the proceeds to retire debt and the balance to fund its upgrade and development activity over the remainder of 2023 and into 2024. Scotiabank and CBRE Limited acted as exclusive selling agents for Allied. Scotiabank, CBRE and Aird & Berlis LLP are acting as legal advisors to Allied in connection with the transaction. BofA Securities, Andrew Guerrisi, Payman Ghaemi, Brennan M. Carroll, Kyle Denomme, Natasha Miklaucic, Denes A. Rothschild, Aaron Blumenfeld, T. Kirk Boyd, Robert Weir, Pitman Patterson and James Fu of Borden Ladner Gervais LLP and Tatsuya Tanigawa, Nathan G. Schmidt and Yoshito Wakabayashi of Nishimura & Asahi are acting as legal advisors to KDDI in connection with the transaction. Scotia Capital Inc. acted as financial advisor to Allied Properties Real Estate Investment Trust (TSX:AP.UN).

KDDI Canada, Inc. completed the acquisition of Network-dense, carrier-neutral, urban-data-centre (UDC) portfolio in Downtown Toronto from Allied Properties Real Estate Investment Trust (TSX:AP.UN) on August 16, 2023. Allied used CAD 755 million of the proceeds from the sale of the Portfolio to repay all amounts drawn on its unsecured credit facility. Allied also set aside CAD 200 million of the proceeds to repay a secured promissory note payable on December 31, 2023, and another CAD 49 million to repay its remaining first mortgages on fully owned properties next year. Allied will use the balance of the proceeds to fund its development and upgrade activity over the remainder of 2023 and into 2024.