Morguard Corporation (MRC-T) has acquired a 20 per cent interest in the TELUS Garden office building at 510 West Georgia and 541 Robson St. in Vancouver, adding to its assets in British Columbia.
Completed in 2016, the 557,255-square-foot, 24-storey tower is owned and operated by Canadian pension fund investors and real estate fund managers, with Morguard as the building’s property manager, according to its website.
Tenants include its namesake TELUS plus CIBC, tech titan Amazon, real estate services firm Jones Lang LaSalle and consultancy Accenture.
“We are thrilled to strengthen our presence in the heart of downtown Vancouver, one of Canada’s premier office investment markets with some of the lowest vacancy rates in North America,” Angela Sahi, president and chief operating officer of Morguard, said in a release.
“This acquisition offers strong growth potential and aligns with our commitment to a more sustainable Morguard with the building’s thoughtful design and environmental features.”
Mississauga-headquartered Morguard is a developer, owner and manager of residential, commercial and hotel properties in Canada and the U.S. Its real estate portfolio is valued at $13.9 billion with 32 million square feet of commercial real estate, of which approximately 11 per cent is located in B.C.
TELUS Garden’s impact on downtown Vancouver
The AAA class office tower is located near Vancouver’s Skytrain and Expo line. The property offers 318 parking stalls and supports various modes of transportation for its tenants. The building also includes almost 33,000 square feet of retail space to complement its office focus.
According to building designer Henriquez Partners Architects, TELUS Garden has transformed the block of downtown Vancouver between Seymour, Robson, Georgia and Richards Streets into a world-class technological and environmentally friendly centre of commerce. The project brought new life to the area with the inclusion of amenities, public spaces and art, Henriquez’ website states.
Green features include a connection to a district energy system, green roof and solar panels, which helped the office building receive the LEED Platinum and BOMA Best Platinum certifications.
“The high-quality build and prime location of TELUS Garden make it an appealing choice for top-tier tenants, particularly those in technology and professional services,” Tom Johnston, Morguard’s senior vice-president of asset and property management for Western Canada, said in a release.
“With its highly sought-after, investment-grade tenant base, the property offers stable and sustainable income growth for our office portfolio.”
In the summer of 2018, TELUS and and Westbank Corp. sold TELUS Garden to an undisclosed buyer in a transaction believed to have been valued at $600 million.
Morguard’s office portfolio held 11.7 million square feet of leasable area as of June 30, and was valued at $2.6 billion, according to the company.
The transaction represents Morguard’s commitment and confidence in office buildings, and its continued expansion of its national and Vancouver office properties, the release concluded.
