Colliers Helps Media Giant Postmedia Find a New Home
Postmedia Network Inc., the largest publisher by circulation of paid, English-language, daily newspapers in Canada, needed a new, innovative, downtown location to complement its transformation from a traditional newspaper publishing company to a digital and audience first multi-platform media organization. The company also sought to capitalize the value of its current building to contribute to its three-year cost cutting plan and pay down corporate debt.
The Colliers team of Steve Keyzer, Tim Bristow and Erika Streich approached Postmedia to discuss its future real estate plans and strategy for its corporate headquarters and National Post offices co-located at 1450 Don Mills Road in Toronto. The team subsequently won the assignment to find a buyer for the property.
The team marketed the property to a target group of potential purchasers as an off market opportunity. It restricted the listing to a certain pool of buyers because of the building’s existing Employment Area Zoning, which limited its current redevelopment potential. The Colliers team determined the ideal buyer would be an entrepreneurial office investor with a longer term investment horizon since Postmedia was selling the property on a short-term, leaseback/vacant basis.
Colliers identified The Rose and Thistle Group Ltd. as an ideal buyer based on its existing buyer profile and its then activity within the immediate market. After Colliers provided the appropriate due diligence reports, The Rose and Thistle Group Ltd. brought forward an unconditional offer to purchase the building. This offer, combined with the buyer's investment profile, maximized the property price at $24 million, limited the risk for Postmedia and allowed it to find an ideal, new head office that met its evolving needs.
The client simultaneously tasked Colliers to identify suitable, leased premises in the downtown area of Toronto to relocate its head office to a more urban and transit-connected location. After a thorough search of the market, 365 Bloor Street East in Toronto was selected as the future home for Postmedia’s corporate head office, integrated advertising and digital groups, and the National Post.