TORONTO, June 15, 2012 /CNW/ – Scotiabank has completed the sale of its
interest in the Scotia Plaza complex in Toronto to Dundee REIT and H&R
REIT for $1.266 billion. The closing of the transaction today completes
the sale process. The after-tax gain from this sale is estimated at
approximately $600 million and will be reflected in Scotiabank’s third
quarter financial results which will be issued on August 28, 2012.

“We are pleased to have completed this transaction,” said Sabi Marwah,
Scotiabank Vice-Chairman and Chief Operating Officer. “Scotiabank was
the last of the major Canadian banks to own its Toronto-based head
office buildings. This asset is not core to our banking business and
provides an efficient source of funding and capital to finance our
growth.”

“Strong market conditions provided an opportune time to maximize the
value from this asset,” said Sean McGuckin, Scotiabank Executive
Vice-President and Chief Financial Officer. “Excluding the gain, the
impact of the sale on ongoing operations is not financially significant
to Scotiabank and will reduce annual earnings per share by less than
$0.02 per share.”

The sale is accretive to capital, increasing the Tier 1 capital ratio
under Basel II by approximately 26 basis points and the Common Equity
Tier 1 ratio under Basel III by approximately 25 basis points.

Concurrent with the transaction, Scotiabank entered into new lease
arrangements with the purchasers which will see the Bank continue as
the anchor tenant in the Scotia Plaza complex. These leases, which
include in the main tower at 40 King Street West, and the historic bank
building at 44 King Street West, have an average term of 13.5 years.
There are other ancillary properties on the city block that are
included in the sale. The complex contains approximately two million
square feet of rentable area. Scotiabank occupies 61% of the area and
the complex is currently 99.5% occupied.

Scotiabank is one of North America’s premier financial institutions and
Canada’s most international bank. With more than 80,000 employees,
Scotiabank and its affiliates serve some 19 million customers in more
than 55 countries around the world. Scotiabank offers a broad range of
products and services including personal, commercial, corporate and
investment banking. With assets of $660 billion (as at April 30, 2012),
Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS).
For more information please visit www.scotiabank.com.

SOURCE Scotiabank