[Daveography]

From yesterday. You know, as it finishes and cleans up, I'm liking the podium more and more.

 

[Daveography]

Katz group is putting Stantec Tower up for sale for $500M. Edmonton Tower is also being sold for about the same amount.

Full story is behind a paywall:
https://www.theglobeandmail.com/rea...es-amid-albertas-oil-rebound/article37947128/

 

[Airboy]

Heard about this a couple of months back. Thought it was just a rumour and didn't take it seriously. Heard that Avis and Young have been quietly trying to sell it.

 

[Daveography]

@Airboy It's kinda crazy, $500M in the Edmonton market? Pretty much unheardof.

Makes sense, though, for Katz to free up capital to continue expanding ICE District.

 

[darwink]

Can't read behind the paywall, but I can't imagine it has cost that little to build. The smaller in all dimensions Telus Sky is in at $440 million.

 

[Daveography]

@darwink I wonder if it excludes SKY Residences, since that portion would technically be owned by a condo corporation? I'm honestly not sure how that works, though, so I could be talking out of my arse.

 

[Airboy]

I believe it dumping the Commercial properties and developing the Residential. Remember tower be is next up. They are just doing some tenet changes and we should see that start soon.

 

[archited]

Sometimes Commercial sale efforts are just "feelers" to establish real market value as opposed to theoretical value -- it solidifies book price. However, if a big fish bites, well...

 

[darwink]

It makes sense to monetize if they've reached as high a lease threshold as they see in the next five years. Pension funds like to convert money now into money for the long term. Two good lead tenants in those buildings.

 

[Daveography]

Considering how many big players who once had big holdings here are divesting themselves from small markets like Edmonton, I wonder who some potential buyers would be.

 

[darwink]

Considering how many big players who once had big holdings here are divesting themselves from small markets like Edmonton, I wonder who some potential buyers would be.

These wouldn't be a Edmonton sentiment play though, it would be like buying a bond - you have secure leases. Even if you have to value the investment at quite a low residual value you should still find a fund chasing security.

 

[Platinum107]

Wait, so does this mean that Stantec no longer owns the office portion of the tower?

 

[Airboy]

Stantec never own any portion of the tower. Other than the sign. They lease. they do not own the current building either.

 

[Platinum107]

oh ok. I did not know that

 

[Daveography]