Skip to content

Zara owner Amancio Ortega to buy Toronto Royal Bank Plaza skyscraper for $ 1.2 billion

Spanish billionaire and Zara founder Amancio Ortega has agreed to buy a historic Canadian skyscraper for the equivalent of around $ 1.2 billion, according to his private office.

Pontegadea, the family office of the main shareholder of fashion group Inditex, confirmed the agreement to purchase Toronto’s Royal Bank Plaza on Thursday. The deal was first reported by Bloomberg News in Canada.

Current owners Oxford Properties Group and the Canada Pension Plan Investment Board hired RBC Capital Markets to explore a potential sale last September.

A landmark in Toronto’s financial district, the downtown office complex was built in the late 1970s and is home to leading banks, including its eponymous tenant, the Royal Bank of Canada. It is also home to law firms and technology companies, and covers approximately 1.5 million square feet across two towers.

The building sits across from the transit hub of Union Station, and the windows in the building are coated with 24k gold, giving the building its distinctive shiny appearance.

Oxford Properties did not immediately respond to a request for comment.

The deal would be the largest commercial real estate transaction in Canada since the start of the pandemic. The move towards working from home has raised questions about the value of iconic places in big cities if the trend continues.