Calgary-based Aspen Properties has brought Edmonton-based Rohit Group on as a co-owner of three downtown Edmonton office buildings, with the partners saying the deal reflects their shared confidence in Edmonton's office market and Alberta's long-term economic outlook.

The partnership covers the former Bell Tower complex, including the Annex, and MNP Tower. Both companies said they plan to reinvest in the properties by completing additional office space, attracting new tenants and building on what they see as growing momentum in downtown Edmonton.

No financial details of the transaction were disclosed.

The companies also signalled the partnership could be the start of a broader relationship. Rohit Group said it intends to continue investing across Edmonton, including downtown, while Aspen said the companies are aligned in their entrepreneurial approach and commitment to investing in the city's future.

Rob Blackwell, president of Aspen Properties, said the company has owned the properties for some time. Rohit Group replaces a former partner, an institutional investor Blackwell did not want to name.

Three office buildings in Edmonton's ICE District

The former Bell Tower, identified now as 10104 103rd Avenue and the Annex building are 580,000 square feet. The tower is 32 storeys while the Annex is three storeys. The MNP Tower is 27 storeys with about 340,000 square feet of space.

Situated in the popular and growing ICE District area, the three buildings are about 80 per cent occupied, said Blackwell.

“(Rohit) is local to Edmonton and all over Alberta. Very entrepreneurial," he said of the partnership. "(The companies have) very similar cultures. How we think about real estate, how we plan on working on this thing. Not a lot of bureaucracy. We just want to move forward and do good things for our city and invest in Edmonton and the province."

He added: “We're really culturally matched with them (in terms of) thinking the same way about the product.... Just the best location in Edmonton, and that's what we really like about these going forward. Great assets and a great location.”

Blackwell said Rohit has become a new equity partner, a new capital partner, in the three buildings as both companies look to reinvest in the downtown. 

“We're looking to make some improvements to both of these buildings and capitalize on what we see as an Edmonton market that's starting to move forward in a much more positive way,” he said.

“The province is back into the office. We're seeing more downtown traffic, and the Alberta economy is a good one.

“We're seeing some green shoots in Edmonton, as they say, and we're excited (about) where it's going. So... more investment into the assets.”

Blackwell said Aspen has known Rohit for a few years and the connection deepened over the past 18 to 36 months.

Aspen has a 'hospitality perspective'

Rohit Gupta, president of Rohit Group, described Aspen as “a very entrepreneurial organization, which matches our DNA.”

“They come from a hospitality perspective when they talk about how they take care of the people who work in their buildings,” he said.

“They're trying to make sure that they create a great community within the building, but also a community outside of the building. So that people can come and interact with their spaces in a positive manner, which is very much the community-centric approach that Rohit has as a company.

“Then the third part of it is they have a great platform for people who are investing capital. From our perspective, we believe we're good partners. They've shown a history of being great partners with other people, and so we wanted to make sure we're partnered with people whose heart is aligned with their mind.”

Gupta said the company in recent years has invested in downtown office buildings in Edmonton. 

“We have been investing consistently in the Edmonton market, in the core and the core-plus area, because we believe the elements are foundationally right for Alberta from an economic perspective,” he said.

“They've got young people. They've got a good business platform on energy. We believe we've got an educated workforce, and the wind is behind our backs for at least the next decade, if not two decades, as a province.

“So, for us to continue to invest in the core of Edmonton, that makes sense from a financial perspective. It also makes sense that we are investing in assets that have long-term value. We're not looking at just assets near end of life, but assets that have long-term value going forward.”

Reinvestment into buildings to secure tenancy

Gupta said initially Rohit and Aspen want to reinvest in trying to bring more tenancy into the buildings. 

“We're looking at finishing out some more space and trying to advertise to bring some more people into that space and get it filled up," he said.

“But largely, the bones and the structure of the properties are in good stead so, we don't have to be aggressive in trying to reposition the buildings permanently or something of that nature. We intend to continue with the same existing platform of being office.”

Gupta described the overall Alberta economy as strong, with significant investments in various industries plus venture capital entering the Alberta region.

“Within Edmonton specifically, the government of Alberta has a small debt and has the capacity to spend money on infrastructure, unlike other provincial governments,” he noted.

“So, we see the government of Alberta providing tailwinds, or providing wind at the backs of business, through future investments.

“All of these components — strong financial management by the provincial government and these industries going strong — provide us, holistically, a positive view on all of Alberta.

“On top of that, the federal government is looking at defence as a major spending activity for the North, and Edmonton being the conduit for that is another reason for us to be positive on Edmonton.”