Avigilon announced it has entered into an agreement to sell the company's downtown Vancouver office tower and associated land for expected gross proceeds of approximately $107.5 million. Avigilon says it will lease back the building, thereby securing its facility needs while reducing its debt, providing cash for general working capital purposes, and enhancing shareholder value.
“We’re very pleased with the investment we made in the building,” said Alexander Fernandes, Avigilon’s Founder, President, Chief Executive Officer and Chairman of the Board. “The transaction unlocks over $100 million in cash, will substantially reduce our debt, and secures a state-of-the-art facility to support our growing business.”
Avigilon purchased the building in November 2015 for $42 million. According to the company, renovations on the building are nearing completion, and Avigilon expects to move in Q2 2017.
The transaction is subject to certain conditions that are typical for a transaction of this nature, including completion of the purchaser’s due diligence, completion of applicable filings under the Competition Act (Canada), satisfaction of Avigilon’s obligations under its credit facility, and finalization of the terms of the building lease.