Canada CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors


Pacific Canada  + Alberta & Prairies + Canada + Ontario  + Office  | 
Allied Properties REIT has acquired majority ownership of a Vancouver office development and increased its stake in a massive Toronto mixed-use office project

Allied to Acquire Vancouver Office Development, Upsize Toronto Project Ownership, for $234.3M

Allied Properties REIT is acquiring majority ownership of a Vancouver office development and increasing its stake in a massive Toronto mixed-use office project for a total of $234.3 million in equity and cash.

Toronto-based Allied announced the proposed acquisitions in a news release. In both cases, Vancouver-based Westbank is the seller and a debtor to Allied. Both deals are expected to close in early April.

The two properties have a total valuation of $920.7 million.

Pending approvals, Allied will hold undivided 90% and 95% stakes, respectively, in 400 West Georgia Street in downtown Vancouver and 19 Duncan Street in Toronto. Through the divestments, Westbank will pay off a secured $198-million mezzanine development loan tied to the Vancouver property.

The deals could have a ripple effect in Toronto and Montreal. Allied plans to divest other “less strategic” properties in those markets for up to $200 million to alleviate short-term debt and cash-flow pressures resulting from the acquisitions.

Allied is slated to acquire its stake in the 24-storey Vancouver development for $130.5 million of equity. The 90% stake is based on a total property value of $395 million.

Allied will expand its interest in the 57-floor Toronto asset for $67.5 million in equity, which will cover the remainder of the $198-million mezzanine loan, and $36.3 million in cash. The 95% stake is calculated according to a total $527.5-million property valuation.

Allied and Westbank currently hold equal ownership stakes in the Toronto property. The cash payment will be funded in part by the reorganization of the ownership of the iconic Telus Sky mixed-use tower in downtown Calgary.

The balance of the cash payment will be funded through Allied’s planned divestments of the less strategic Toronto and Montreal assets.

Allied and Westbank, along with Telus, currently own Telus Sky equally. The REIT and Westbank are in the process of reorganizing their stakes to become equal owners of the rental-residential component. Telus is slated to control the commercial portion.

Allied was motivated to pursue the Vancouver and Toronto acquisitions after receiving unsolicited offers on the yet-to-be-sold Ontario and Quebec properties. The offers came while Allied was completing the sale of its UDC data-centre portfolio in downtown Toronto to the Canadian subsidiary of Japan’s KDDI in 2023 for $1.35 billion.

There appears to be considerable demand for smaller properties that are not part of a portfolio’s major concentration, or assembly, of distinctive urban workspace, said Allied. The REIT plans to sell the less strategic properties through private negotiations rather than a public-offering process.

“The three transactions (TELUS Sky, 400 West Georgia and 19 Duncan), along with our contemplated property sales in Montréal and Toronto, will continue the ongoing upgrade of our urban workspace portfolio and establish our urban rental-residential portfolio in a concrete, material and timely way,” said Michael Emory, Allied’s founder and executive chair.

Allied expects the Telus Sky ownership reorganization to be completed in the second quarter of 2024.

Pictured (second from left): 400 West Georgia Street in Vancouver

Image: Westbank


Inside The Story

Allied Properties REITWestbankTelus

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

  • ◦Sale/Acquisition
  • ◦Development
New call-to-action
New call-to-action