03/27/2013 12:44 EDT | Updated 05/27/2013 05:12 EDT

FAM REIT buys office property on Toronto's Yonge Street for about $43M

RICHMOND, B.C. - FAM Real Estate Investment Trust (TSX:F.UN) is paying about $43 million to acquire an office building in Toronto.

The Vancouver-based owner of industrial, office and retail properties says the deal for the building at 4211 Yonge St., just south of Highway 401 along the Yonge subway line, is expected to close in early May.

"The acquisition of 4211 Yonge completes our two-stage capital redeployment initiative which commenced with the previously announced agreement to sell our 50 per cent non-managing interest in 220 Portage Ave. (Winnipeg)," FAM chief executive Shant Poladian said.

Financing for the deal includes a $25-million first mortgage, about $13.5 million in net proceeds from the disposition of the Winnipeg property.

FAM said the Winnipeg property is being disposed of through an arrangement that compels Artis Real Estate Investment Trust (TSX:AX.UN) to buy its interest for $20.5 million, subject to certain adjustments.