Scotiabank Plaza Could Fetch $1 Billion for Shareholders. Scotia Decides to Take Advantage of Hot Toronto Real Estate Market.

Finally a Canadian bank is doing something prudent recently for its shareholders. Scotiabank (TSE: BNS) has indicated that it is looking for buyers of Scotia Plaza, the second largest tower in the country. Real Estate analysts think that Scotiabank could fetch $1 billion for its shareholders from the sale of the property. 


In an overheated property market, with low mortgage interest rates, deciding to unload a property for a massive gain is a prudent move for the bank. Scotiabank is currently the only bank in Toronto that actually owns its office building, which it has occupied since 1988. 


Bank spokeswoman Ann DeRabbie stated that "given market conditions, this could be an opportune time to maximize the value from our holdings," and Intelligent Investors should agree. The $1 billion could be better utilized elsewhere, even if it is simply used to reduce the bank's leverage and risk profile.