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Altus Group completed the pre-bid due diligence for the Bay Adelaide Centre on behalf of VPMA Bay Adelaide Property Ltd., a client of McCarthy Tetrault. The success of the offer resulted in Altus Group then being awarded the contract to complete the financial due diligence on a 50% interest in this 2.2 million sq. ft. trophy asset.

Altus Group successfully advised VPMA on their offer to acquire the Bay Adelaide Centre and subsequently provided a timely and accurate review of the financials within the 30-day due diligence period.


Initially, VPMA and McCarthy Tetrault needed support on their bid to purchase a 50% interest in the Bay Adelaide Centre in Toronto, from Brookfield Properties, by getting professional advice regarding the Toronto office leasing market, comparable investment sales activity and thereafter, financial modelling assistance. The property comprised of 2.2 million sq. ft. of Class AA office space, in the heart of Toronto’s financial core.

After a successful bid, VPMA and McCarthy Tetrault then needed an experienced partner to perform financial due diligence, including a review of the leases. This was all part of a typical commercial asset due diligence process, but necessary to mitigate risk and ensure a sound investment decision during the 30-day due diligence period.

  • Support client in making a fair yet competitive bid, as well as a well-informed investment decision.
  • Provide market intelligence to mitigate as much financial risk as possible for the client.
  • Provide timely and accurate analysis of financials within a short 30-day due diligence period.


McCarthy Tetrault had worked with Altus Group in the past and knew they would be a great partner for both the pre-bid due diligence as well as the financial due diligence phases of this high profile acquisition.

Included in the pre-bid due diligence was:

  • Market intelligence for pre-bid support
  • Financial modelling

Included in the financial due diligence was:

  • Lease audit and lease estoppel review
  • Base rent projection, verification and reasonability analysis
  • Analysis of tenant recoveries for audited tenants
  • Analysis and review of historical revenues, expenses and budget figures
  • Financial projection review, including a 10-year review of the capital expenditure plan
  • Review of building condition reports (and reconciliation with capital expenditure plan)
  • Facilitation of the environmental review
  • Review of Statement of Adjustments


  • A successful bid resulting from the pre-due diligence advisory work.
  • Financial due diligence was completed efficiently to allow time for further negotiations during the 30-day due diligence period – should it have been necessary.
  • VPMA was able to make a well-informed decision to acquire a 50% interest in the Bay Adelaide Centre from Brookfield Properties, as planned. The transaction represented the largest single office investment sale in Canada in 2018.
  • Any long term impacts VPMA and McCarthy Tetrault weren’t aware of were uncovered during the 30-day due diligence analysis, ensuring no post-acquisition surprises.

Altus Group is a great one-stop due diligence shop and the kind of partner you need when you’re working on a high profile acquisition, within a compressed timeframe.

John C. Currie

Partner, McCarthy Tetrault (Toronto)

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