CBRE Launches Sale of Downtown Toronto 5-Star Luxury Hotel & Residence Property

Property expected to garner substantial interest against backdrop of record level of investment in Canadian Hotels

Toronto – January 11, 2017 – CBRE Limited has been exclusively retained by FTI Consulting Canada Inc., in its capacity as Court-appointed Receiver*, to market and sell the unsold units related to the property currently branded as the Trump International Hotel & Tower Toronto (the “Hotel”) and the Trump Residences Toronto (the “Residences”) pursuant to a sale procedure approved by the Court. The sale includes 211 hotel units, 74 residential units and most commercial, retail and amenity space in the property. The execution by the Receiver of a “stalking horse agreement,” which sets a minimum price of $298 million in the sale procedure, has also been approved by the Court.

The 65-storey, luxury mixed-use hotel and residential condominium enjoys a prestigious Bay Street address and is prominently located on the southeast corner of Bay and Adelaide Streets in Toronto’s financial core. The Hotel’s luxury market positioning provides outstanding guest service which has generated a Forbes Travel Guide’s five-star hotel rating for the past three years consecutively.

“Opportunities to acquire such a prominent trophy asset in Toronto’s financial core are extremely rare. The property also provides the acquirer with substantial unrealized potential in Canada’s biggest and best performing hotel market and we expect to see robust demand for this asset from both international and domestic investors,” commented Bill Stone, Executive Vice President of CBRE Hotels.

The sale coincides with record levels of interest in Canadian commercial real estate assets. Hotel investments in 2016 are set to break the previous 2007 record of $4 billion, with Toronto assets comprising almost 40% of the total. Toronto’s hotel industry performance continues to surge and it leads Canada’s major metropolitan markets in both Average Daily Rate (‘ADR’) and Revenue per Available Room (‘RevPAR’) growth, both critical key performance indicators for the hotel industry. Year-end 2016 estimates indicate Downtown Toronto will post double digit growth of 10.3% and 15.6% in ADR and RevPAR respectively.

“It’s hard to recall a better time for the Canadian hotel industry and for Toronto in particular. Occupancy levels are at all-time highs, we’re seeing double-digit growth in revenues and the outlook for 2017 is even stronger with the celebrations for the 150th anniversary of Canada expected to attract record numbers of tourists to our major cities. Against this backdrop, the quality, location and prominence of the hotel and residences provide new owners with significant potential upside from both the opportunity to improve performance and to monetize the residential units,” added Stone.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.

In Canada, CBRE Limited employs approximately 1,885 people in 20 locations from coast to coast. Please visit our website at www.cbre.ca.

* FTI Consulting Canada Inc. in its capacity as court-appointed receiver and not in its personal or corporate capacity (the “Receiver”) of certain property, assets and undertakings of Talon International Inc., Midland Development Inc., 1456253 Ontario Inc., 2025401 Ontario Limited, Barrel Tower Holdings Inc., Harvester Developments Inc., TFB Inc., 2263847 Ontario Limited, Talon International Development Inc. and 2270039 Ontario Limited (collectively, the “Property” pursuant to an Order of the Court dated November 1, 2016 (as amended and restated, the “Receivership Order”). A copy of the Receivership order and other materials related to the receivership proceedings, including the Court-approved sale procedure, are available on the Receiver’s website at http://cfcanada.fticonsulting.com/talon.