On March 16, 2004, O&Y Real Estate Investment Trust purchased the 1 million square foot Gulf Canada Square in Calgary from Brookfield Properties Corp. and a fund managed by Goldman Sachs, for $222 million. The purchase was financed through a seven-year, non-recourse first mortgage of $133.2 million provided by the Metropolitan Life Insurance Co. (MetLife), with the balance of the purchase price funded through the REIT’s existing operating/acquisition facility and cash on hand. Approximately 80 per cent of Gulf Canada Square is leased on a long-term basis to Canadian Pacific Railway Co. and ConocoPhillips Canada Resources Corp.
The REIT was represented by Torys LLP, under the direction of Randy Northey, general counsel. The Torys team included Paul Kennedy, David Dell and Steve Blackburn (real estate) and Jay Holsten (competition); and assisted by Rick Dawson, Carol Reesor, Kristie Smith and Katherine Harrison of Blake, Cassels & Graydon LLP.
The Goldman Sachs fund and Brookfield Properties were represented by Stikeman Elliott LLP, under the direction of Cameron Black, vice-president, legal, Brookfield. The Stikeman Elliott team included Barry Emes, Stephanie Uhlich, Jessica Green and Linda Garratt.
MetLife was represented by Osler, Hoskin & Harcourt LLP, under the direction of in-house counsel Lisa Validat. The Oslers team included George Valentini, Sherri Fountain, Rod Davidge and Robert Antenore.