The Vancouver Business Thread

[jollyburger]

Equiton’s Apartment Fund acquires first B.C. property

The Equiton Residential Income Fund Trust (Apartment Fund) has acquired a 117-unit rental complex in Burnaby, B.C. from a Vancouver-based private ownership group for $45.625 million.

The acquisition is Burlington, Ont.-based Equiton’s 10th in just over a year and is its first in British Columbia, after moving into the Alberta market last year from its Ontario stronghold.

“We've been sniffing around B.C. for the last couple years, doing our research, and we liked the size of this one,” Equiton vice-president of investments Ryan Donkers told RENX.

“It was a medium-sized deal so it attracted a certain pool of buyers. Today's market is a little softer, so buyers have lots of opportunities to try and execute on. If you have capital today, you definitely have a choice.”

https://renx.ca/equiton-apartment-fund-buy-british-columbia-mountain-park-residences

[GMD]

Originally Posted by giallo

Those numbers aren't great.

I think a big part of it is due to the global economy. It feels like we're on the precipice of a global recession. Also, BC isn't a cheap travel destination (one look at hotel prices in Vancouver/Victoria/Kelowna will confirm that). International travellers are staying closer to home or choosing cheaper international destinations.

This all makes sense, plus the ban on short term rentals is no doubt taking a toll, and on top of that some visitors might have planned to visit BC and the US, but will now visit a different continent altogether to avoid the US.

Hotel prices are crazy, we need to make it easier for them to get built as soon as possible, especially if we are going to maintain the limits on short term rentals.

[djmk]

Originally Posted by whatnext

I still find it weird that France dropped so much. Germany was only down about 8% and they seem more exposed to an economic downturn. The UK drop is about the same, yet France is three times more.

the olympics were in paris just after this

[BaddieB]

[deleted]

[jollyburger]

I wonder if the statement is talking about the 720 Beatty rezoning or if they actually have more data centres in the works.

Darren Tangen Named President As Westbank Looks To Broaden Horizons

"These are unusual times," said Westbank in a statement provided to STOREYS. "Our industry is evolving rapidly, and the current pace of disruption brings both significant challenges and unique opportunities. From the beginning, we have taken pride in being more of a creative practice than a traditional real estate business. Our ability to develop innovative real estate solutions has always helped us navigate uncertain waters and differentiate ourselves in the marketplace."

"Today, Westbank is recognized for our architecture, design, and large-scale city-building initiatives," the company added. "As part of our ongoing evolution, we are now applying our experience owning and managing a district energy system in Vancouver, BC to expand into the realm of urban digital infrastructure — merging our expertise in city-building with the growing need for low-carbon AI infrastructure. While we will continue to pursue residential, hospitality, retail, and everything else that has defined us, we are broadening our horizons."

https://storeys.com/westbank-appoints-darren-tangen-president/

[whatnext]

Originally Posted by jollyburger

I wonder if the statement is talking about the 720 Beatty rezoning or if they actually have more data centres in the works.



https://storeys.com/westbank-appoints-darren-tangen-president/

So in other words, Ian Gillespie is out?

[Denscity]

This seems to definitely be worth posting:

Mining giant Anglo American to merge with Teck and move global headquarters to Vancouver.
How much office space would they require I wonder.

[jollyburger]

Originally Posted by Denscity

This seems to definitely be worth posting:

Mining giant Anglo American to merge with Teck and move global headquarters to Vancouver.
How much office space would they require I wonder.

Anglo had 700 people in London. You assume there's a lot of "synergy" between the two so who knows what the final headcount will be.

Teck had around 900 employees? They renewed 162,000 square feet at B5

https://www.floorspace.ca/insights/first-movers-q4-2022-6-notable-vancouver-office-leases/

I guess they'll need to beat Lululemon's 300,000 square foot at 725 Granville (ignoring all their other offices) or maybe they are just going by headcount.

[whatnext]

Originally Posted by jollyburger

Anglo had 700 people in London. You assume there's a lot of "synergy" between the two so who knows what the final headcount will be.

Teck had around 900 employees? They renewed 162,000 square feet at B5

https://www.floorspace.ca/insights/first-movers-q4-2022-6-notable-vancouver-office-leases/

I guess they'll need to beat Lululemon's 300,000 square foot at 725 Granville (ignoring all their other offices) or maybe they are just going by headcount.

Isn't there some doubt as to whether approval for this merger is a given?

[whatnext]

Tourism numbers essentially flat this year.

....On the tourism front, the number of non-resident visitors entering Canada through B.C marginally declined in June as trade and political tensions tempered travel. On a seasonally adjusted basis, entries fell by 0.2 per cent compared with May. The level was the second lowest number since January 2024. Overnight tourist visits rose 0.3 per cent but same-day excursions declined by one per cent.

Visitors from countries other than the U.S fell by 2.4 per cent. Those that came for overnight stays declined by two per cent while those who made same-day excursions declined by 4.9 per cent. Overall, the numbers that came in June was roughly in line with the average monthly number over the last 12 months.

The number of U.S. residents entering Canada through B.C rose marginally, up 0.4 per cent over the previous month. Among U.S. visitors, overnight stays rose 1.4 per cent, and same-day visits fell by 0.8 per cent. The overall U.S. visitation rate stood at 93.9 per cent of the previous 12-month average.

Canadian resident travel returning via B.C. rose slightly, up 0.9 per cent in June compared with the previous month. This was the second month in a row the number grew. But after revising the numbers, it was still only 80 per cent when compared with the average over the previous 12 months...

https://www.biv.com/news/commentary/brya...s-take-a-tumble-along-with-jobs-11189576

[LeftCoaster]

Not surprising, nowhere new for them to stay.

[jollyburger]

Allied has 19 'non-core' assets for sale

The 10 non-core properties which are under contract or in negotiations include six Montreal assets, two in Toronto, and one each in Vancouver and Calgary. Allied expects to receive approximately $231 million for these assets. On the closing of these planned transactions, the REIT will have divested all its current non-core assets in Montreal, Vancouver and Calgary.

Allied is anticipating proceeds of approximately $257 million for the nine Toronto assets it has for sale.

The trust is also “making progress in its efforts to monetize its loan receivable secured by 150 West Georgia.” That property is a downtown Vancouver development site by Westbank, which includes a new power generation facility and an office and commercial building. The loan is for up to $185 million plus interest, at seven per cent annually.

https://renx.ca/allied-has-19-non-core-assets-for-sale

[Changing City]

There's a proposal for a $55bn US buy out / privatisation of Electronic Arts. Too soon to know if that means job cuts.

[whatnext]

Originally Posted by whatnext

So in other words, Ian Gillespie is out?

I was surprised how little discussion there was of this on SSP. Love him or hate him, Gillespie gave Vancouver some very distinctive buildings.

Is he still involved with Westbank or completely out?

[RedArbutus]

Originally Posted by Changing City

There's a proposal for a $55bn US buy out / privatisation of Electronic Arts. Too soon to know if that means job cuts.

Even beyond the normal risk to jobs of PE buying into tech/media...Trump just said he wants to apply 100% tariffs to foreign films being distributed in the US. What happens when he learns about video games being made outside of the US and his son-in-law has a major share in one of the biggest developers and distributors on the planet?

[hollywoodnorth]

Originally Posted by whatnext

I was surprised how little discussion there was of this on SSP. Love him or hate him, Gillespie gave Vancouver some very distinctive buildings.

Is he still involved with Westbank or completely out?

In that same time, however, Westbank has also continued to advance both existing and new projects. The Raven at 3709 W Broadway and Joyce II at 5055 Joyce Street are both nearing completion, while upcoming projects include the three-tower Commercial-Broadway Safeway redevelopment, the three-tower East Village project in the Downtown Eastside, and a 14-storey condo project near King Edward Station.


is the Commercial-Broadway Safeway redevelopment even going to happen at this point? I bet they have to sell off their stake as well.

[Changing City]

Originally Posted by hollywoodnorth

is the Commercial-Broadway Safeway redevelopment even going to happen at this point? I bet they have to sell off their stake as well.

Why wouldn't it? When Westbank were restructuring their finances they sold their share in Zephyr (the Safeway / rental building on Davie), to the landowner, Crombie REIT. That same REIT owns the East Broadway site, so it's quite possible that Westbank's involvement is effectively as development managers, taking a fee for getting the project underway (and potentially building it, if Icon is the contractor). They may not have a 'stake' in the project, just as they don't with Senakw or Oakridge these days.

I think the East Hastings towers are similar; Westbank are development managing the rezonings, but they don't own the sites.

[whatnext]

Originally Posted by hollywoodnorth

In that same time, however, Westbank has also continued to advance both existing and new projects. The Raven at 3709 W Broadway and Joyce II at 5055 Joyce Street are both nearing completion, while upcoming projects include the three-tower Commercial-Broadway Safeway redevelopment, the three-tower East Village project in the Downtown Eastside, and a 14-storey condo project near King Edward Station.


is the Commercial-Broadway Safeway redevelopment even going to happen at this point? I bet they have to sell off their stake as well.

Oh, I have no doubt they’ll be built. But The Raven illustrates why I was surprised there was so little comment about Gillespie. I’m not a huge fan of that building (other than the raven “gargoyles”) but it is distinctive and clearly has Gillespie’s hands on it. The Commercial Broadway buildings on the other hand are pretty dull.

[jollyburger]

Originally Posted by Changing City

Why wouldn't it? When Westbank were restructuring their finances they sold their share in Zephyr (the Safeway / rental building on Davie), to the landowner, Crombie REIT. That same REIT owns the East Broadway site, so it's quite possible that Westbank's involvement is effectively as development managers, taking a fee for getting the project underway (and potentially building it, if Icon is the contractor). They may not have a 'stake' in the project, just as they don't with Senakw or Oakridge these days.

I think the East Hastings towers are similar; Westbank are development managing the rezonings, but they don't own the sites.

Not sure if the ownership has changed since Sept 2024 but this says Westbank had a position in all the properties.

The five vacant parcels are legally owned by 1046079 BC Ltd. and beneficially owned by Beauty & Grace Development 1 Limited Partnership, according to the Land Owner Transparency Registry. The rezoning applications note that the property is owned by Westbank and Promerita Group.

The two parcels are each currently occupied by a commercial building originally constructed in 1960 and 1930, respectively. The registered owner of the properties is Living East Village Investments Inc. and is beneficially owned by Beauty & Grace Development 2 Limited Partnership, according to the Land Owner Transparency Registry, suggesting that East 1 may be named Beauty and East 2 may be named Grace. This tower will also be owned by Westbank and Promerita Group, according to the rezoning application.

https://storeys.com/westbank-promerita-bc-housing-vancouver-east-village/

I wonder what Icon West is doing since all their "projects" seem to be completed by other contractors. Seems like Kanin did The Raven and Joyce 2.

https://kanin.ca/projects/

[Changing City]

Originally Posted by jollyburger

Not sure if the ownership has changed since Sept 2024 but this says Westbank had a position in all the properties.

That may have changed. When the City posted a notice requiring removal of the debris on the non market site on East Hastings, I think it was to the Provincial Housing Authority, as owners. We know Westbank have been selling their positions and ownership of a variety of their projects, both past and current, so it's reasonable to think they may be doing the same with future projects, but that doesn't necessarily mean that the development won't be built.