Timbercreek Capital and Aspen Properties are seeking to raise $30 million for their Palliser One office-building conversion project in downtown Calgary.

Toronto-based Timber Creek, through a subsidiary, and Calgary-based Aspen have agreed to form a joint-venture limited partnership, 1 Palliser Square LP, which intends to complete a private-placement offering of three million Series A and/or Series F units valued at $10 apiece.

The joint-venture plans to use the proceeds to purchase the 418,000-square-foot office building, located next to the Calgary Tower, and convert it into approximately 420 residential units and amenities.

The offering is expected to close on September 10.

Palliser One is among office-conversion projects that have received funding commitments through the city’s paused Downtown Development Incentive Program, which funds the redevelopment of older office buildings into rental apartments, hotels, schools and performing arts centres.

The city paused the program in fall 2023 after its $153-million budget was exhausted.