Allied to sell UDC portfolio to KDDI Corp for C$1.35 billion

(Reuters) – Allied Properties Real Estate Investment Trust on Wednesday said it has entered into an agreement to sell its urban datacenter portfolio to Japanese telecommunications provider KDDI Corporation for C$1.35 billion ($1.02 billion).

The portfolio comprises Toronto’s 151 Front Street West and 905 King Street West, along with a leasehold interest in 250 Front Street West.

Allied will use around C$1 billion of the sale proceeds to retire debt and the balance to fund its upgrade and development activity over the remainder of 2023 and into 2024, the company said.

Scotiabank, CBRE and Aird & Berlis LLP are advisers to Allied for the transaction, while BofA Securities, Borden Ladner Gervais LLP and Nishimura & Asahi are acting as advisers to KDDI.

($1 = 1.3222 Canadian dollars)

(This story has been corrected to change the value to Canadian dollar from U.S. dollar throughout and add the conversion rate)

(Reporting by Pratyush Thakur in Bengaluru; Editing by Dhanya Ann Thoppil and Pooja Desai)