Westbank sells landmark downtown Vancouver tower in multimillion-dollar deal

Deloitte Summit at 410 West Georgia Street, Vancouver, captured on March 16, 2022. (Kenneth Chan/Daily Hive)

Vancouver-headquartered developer Westbank sold an ownership-level stake in one of its landmark downtown towers to another developer in a deal revealed Monday.

Allied Properties REIT will acquire an ownership interest in 400 West Georgia, an office and retail building known for its eye-catching stacked cube design. Allied secured 90% ownership of the building by converting $130.5 million of its existing loan to equity.

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The building’s total value is estimated at $395 million. Of that, $250 million is subject to secured financing.

Allied will take over management of the Deloitte Summit building on January 1, 2025.

(CNW Group/Thomson Reuters)

Allied is also taking over another of Westbank’s buildings in Toronto. The 19 Duncan in Toronto’s Entertainment District is currently jointly owned by Westbank and Allied. Allied is increasing its ownership stake from 50% to 95% by converting the remainder of a mezzanine loan to equity and paying Westbank $36.3 million in cash.

The developers expect the transactions to be completed in early April, subject to Competition Act approvals.

“The transactions will reduce Westbank’s debt to Allied materially and afford Allied a large ownership position in two triple-A urban properties as they near successful completion and full lease-up,” Allied said in a news release.

Allied and Westbank are also re-jigging ownership structure of the Telus Sky building in Calgary so that Allied and Westbank will jointly own the residential portion of the building while Telus own the office portion. The Calgary restructuring should be complete by the end of June.

As it acquires larger downtown buildings, Allied plans to sell off some of its smaller properties.

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