Secured lender Timbercreek Mortgage Servicing has agreed to purchase the debt-laden Life Plaza office tower in Calgary through a receivership sale.

The agreement comes after a pre-receivership marketing process failed to attract an acceptable third-party offer.

Receiver MNP said Alberta Court of King’s Bench placed Life Plaza owner SCREO I Gill Inc. and SCREO I Gill L.P. into receivership on June 9 after Timbercreek Mortgage Servicing Inc. and Computershare Trust Company of Canada, acting as Timbercreek’s bare trustee, sought the appointment. The court approved the sale agreement on June 9 as the receivership order was issued, deciding that the completed marketing process was sufficient and determined that Timbercreek was the best prospective buyer.

The owners owed the secured lender about $27.3 million plus additional legal expenses and interest.

Under the approved purchase agreement, Timbercreek, or a permitted assignee, will acquire the property through a combination of cash and a reduction of the secured debt. The transaction is scheduled to close 45 days after the June 9 sale approval and vesting order, subject to any agreed extension.

Located downtown at 734 7th Ave. S.W., Life Plaza is a B-class office building with 17 storeys, about 225,983 square feet of office space and 10,331 sf of retail space. Constructed in 1980 and renovated in 2018, the property was about 66% occupied when the receivership application was filed.

Before the receivership, CBRE marketed Life Plaza alongside four other downtown Calgary office properties. The campaign reached 1,243 prospective buyers, with 31 signing non-disclosure agreements, five pursuing further discussions and four touring the building. Although two letters of intent were received, they were rejected because the proposed prices were deemed unacceptable.

According to the receiver, Life Plaza was the only property in the portfolio that did not secure a third-party buyer. Occupancy declined to 66% from 74% during the marketing process, while security concerns related to the building’s location along Calgary’s CTrain route and limited potential for residential conversion also affected buyer interest.

The receiver said Timbercreek was the only stakeholder with an ongoing economic interest in the property and could improve its recovery through revised capital investment, property management and leasing strategies.

MNP recommended approval of the transaction, concluding the marketing process provided sufficient market exposure and that the purchase price represented the best available value. The company said the price aligned with an October 2025 appraisal by Cushman & Wakefield, exceeded an amended appraisal value and surpassed the values reflected in the two letters of intent.

Final court approval is the only remaining condition prior to the deal’s closure.

The pending deal’s financial term and the Cushman & Wakefield appraisal report were sealed by the court.

Pictured: Life Plaza office tower in downtown Calgary.

Photo: Colliers