Allied Properties REIT (AP-UN-T) and its partners Westbank and TELUS have an agreement to reorganize their ownership of one of downtown Calgary’s most iconic high-rise towers, the 60-storey TELUS Sky.
In an announcement by Allied Monday morning, the trust reports it and Westbank will sell their respective 1/3 interests in the commercial component of the tower to TELUS, while TELUS will sell its 1/3 interest in the residential component to Allied and Westbank.
When the transaction is complete, TELUS will own 100 per cent of the commercial component of the tower, and Westbank and Allied will be joint owners of 100 per cent of the residential component.
“This is a win-win transaction for the partners,” Michael Emory, founder and executive chair of Allied, said in the announcement.
“It will address the respective needs and aspirations of the partners optimally and bring our joint-venture to a successful conclusion.”
Financial details of the transaction have not been released.
TELUS Sky was developed by the “three equal partners,” namely TELUS, Westbank and Allied.
The TELUS Sky tower
The tower, which stands 729 feet (222 metres) and is the third-tallest building in Calgary, is also one of the newest, having opened in 2019. It is connected to the city’s indoor Plus 15 pedway walking network and about a one-minute walk from its downtown LRT system.
The commercial component is comprised of 452,352 square feet of office space, 13,059 square feet of retail and 156 underground commercial parking and fleet stalls.
The residential component of the tower, known as The Residences at TELUS Sky, includes 326 rental residential units, related common areas and facilities and 176 underground residential parking stalls.
TELUS is the anchor tenant for the building, Westbank is the developer of the project and manager of the residential component and Allied is the manager of the commercial component.
Allied’s website lists about 111,000 square feet of commercial space available for lease in the tower in 10 separate blocks.