In a release issued Wednesday, Allied said it also intends to become a 50 per cent owner of the 620,000-square-foot development upon completion of construction, which is set for 2023.
“Providing this funding to Westbank will enable us to generate an accretive return from the outset,” said Michael Emory, president and CEO, in a statement announcing the deal. “As importantly, it will in time enable us to serve knowledge-based organizations more fully in Vancouver’s thriving urban workspace market.”
Located on the southwest corner of Beatty and West Georgia at the site of BC Place stadium, the property is comprised of 51,817 square feet of land. It sits between Allied’s existing Yaletown and Crosstown portfolios in Vancouver.
The office development is proposed as a distinct S-shaped, glass-covered structure designed by Bjarke Ingels Group and HCMA Architecture + Design, with sweeping curves. It will be almost 264 feet high and include ground-level retail/commercial space.
720 Beatty to expand BC Place concourse
About 520,000 square feet of the development will be office space.
The rest will be mainly retail, including a smaller, circular pavilion which is designed to contain several food and/or entertainment-related businesses. It will sit on the concourse between the building and BC Place , a public space which will also be enlarged and extended onto the development property.
Tenants will have access to a variety of amenities including a landscaped garden roof complete with running track.
In addition to a four-level, 358-space vehicle parking garage, it will also have space for parking 325 bicycles.
The site also includes a redesigned Creative Energy steam plant which will comprise about 7,200 square feet.
The arrangement stipulates that Allied will provide Westbank with up to $185 million, via a first mortgage, to fund the acquisition of the property, pre-development costs and initial construction costs. The mortgage will carry a seven per cent interest rate.
On placement of conventional construction financing, the mortgage will be secured by a second charge, with the construction lender having the first charge. The mortgage will be guaranteed by Westbank.
It is to be repaid upon “substantial completion” of the property. At that time, Allied will purchase a 50 per cent interest in the property at a purchase price determined according to an agreed formula.
Westbank will be the property manager.
Allied is a Canadian owner, manager and developer of distinctive urban workspace in Canada’s major cities, as well as network-dense urban data centres in Toronto.
Allied’s business is providing knowledge-based organizations with distinctive urban environments for creativity and connectivity.