Mr. Andrew Chornenky reports

SCOTIABANK ENTERS INTO AGREEMENT FOR THE SALE OF SCOTIA PLAZA

Bank of Nova Scotia has entered into an agreement to sell its interest in the Scotia Plaza complex to Dundee REIT and H&R REIT for approximately $1.266-billion. This agreement is the result of a process that began in January and the sale is expected to close on or about June 20, 2012.

"Scotiabank is the only large bank that currently owns its headquarters in downtown Toronto, and given market conditions, this was an opportune time to maximize the value from those holdings," said Sabi Marwah, Scotiabank vice-chairman and chief operating officer. "We have also entered into a lease arrangement that will keep us as lead tenant of Scotia Plaza for a number of years."

Scotiabank announced that it has entered into a lease agreement to secure its occupancy as the anchor tenant throughout the Scotia Plaza complex for an average of 13.5 years, including in the main tower at 40 King St. West, and in the historic bank building at 44 King St. West. There are other ancillary properties on the city block that are included in the sale. The complex contains about two million square feet of rentable area. Scotiabank occupies 61 per cent of the area and the complex is currently 99.5 per cent occupied.