Dundee REIT Falls After Deal to Buy Scotia Plaza

Dundee Real Estate Investment Trust (D-U) fell after saying it would issue shares to help fund the purchase of two-thirds of Scotia Plaza in Canada’s most expensive office sale.

Dundee units fell 53 cents, or 1.5 percent, to C$36.07 at 11:03 a.m. in Toronto and earlier fell to C$35.90, its lowest level since April 5.

Dundee and H&R Real Estate Investment Trust agreed late yesterday to buy Scotia Plaza, Canada’s second-tallest office building, from Bank of Nova Scotia (BNS) for a record C$1.27 billion ($1.24 billion).

Toronto-based Dundee agreed to sell as many as 9 million units of its trust at a price of C$35.90 each to help finance the sale.

The transaction will be the biggest office sale in Canada, according to Real Capital Analytics Inc., a New York-based property research company.

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net

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