Menkes Developments Ltd. (Menkes), a real estate company involved in the construction, ownership and management of various properties, and Healthcare of Ontario Pension Plan (HOOPP) - the pension plan for Ontario's hospital and community-based healthcare sector - completed their joint venture arrangement and construction financing for a new landmark office tower in downtown Toronto called One York Street, a new 800,000-square foot, 35-storey, LEED Platinum office development in Toronto's south core.
The $375-million senior syndicated financing, led by BMO Capital Markets as lead arranger, one of the larger construction loans completed recently, is available in two tranches: Tranche A ($364 million) is to finance budgeted project costs for the development, construction and leasing of the Project; and Tranche B ($11 million) is for the issuance of Letters of Credit in favour of Governmental Authorities to secure the performance of the Borrower's obligations in connection with the Project. The final maturity date on the financing is October 31, 2017.
HOOPP Realty Inc. was represented by Dentons Canada LLP with a team that included Jillian Shortt and Roger Pead (real estate); Heidi Clark (banking and finance); and Tony Schweitzer (tax) and Chris Turney (corporate).
Menkes was represented by Goodmans LLP with a team that included Fred Rubinoff, Stephen Belgue and Jeffrey Shore (real estate).
BMO Capital Markets and the syndicate of lenders were represented by Jonathan See, Brad Nicpon and Charlene Schafer from McCarthy Tétrault LLP.