Under a two stage process announced Monday, FAM said it has exercised its right to buy 50 per cent of the building at 220 Portage Ave. from the current owner at a price of $20.5 million and assign that right to Artis.
It then has the right under a put-call option to compel Artis to buy the other 50 per cent interest from FAM within 12 months, also for $20.5 million, subject to usual closing adjustments. Artis has the right under a call option to buy FAM's 50 per cent for a period of 90 days after the expiration of the put option.
"The opportunity to dispose of our 50% non-managing interest through this Put-Call structure will enable us to redeploy capital accretively with significant timing flexibility," said FAM CEO Shant Poladian.
FAM is a diversified commercial real estate investment trust with a portfolio of industrial, office and retail real estate with some 1.7 million square feet of gross leasable area primarily in large urban centres across Canada.