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October 07, 2019 - Blog Article
Stantec Towers Finds New Commercial Real Estate Owner

Alberta, one of the most beautiful of Canadian provinces, has been growing in popularity among various retail commercial real estate ‘CRE’ investors. Edmonton is one of the most popular cities where retail or CRE in general is thriving, and it has increasingly attracted major investors from all over the world.

 

 

 

 

Stantec Tower

 

Stantec over the last 65 years has grown from a one-man company to a multi-billion dollar company. Dr. Don Stanley founded it in Edmonton, Alberta, Canada in 1954. 

 

Stantec grew operations from just one office to now having employees and resources in six continents with multiple offices. Though they have grown both regionally and globally they still consider Alberta as their hometown and has made it their headquarters.

 

Stantec built the tallest skyscraper in the ICE District in Edmonton, Alberta, standing tall with 69 floors. It is a mixed-use building and its first 29 floors are designed for commercial tenants and the top 40 floors have over 480 luxury residential units. 

 

Some of the commercial tenants in the building include PwC Canada, Stantec, DLA Piper, and Dentons Canada LLP.


 

Deka Immobilien Buys a Portion of the Stantec Tower

 

Stantec Towers recently closed a CRE deal with Deka Immobilien. Deka Immobilien, a German real estate fund company of the Deka Group, purchased the commercial portion of the Stantec Tower. Deka is one of the biggest real estate fund organizations in Germany and they purchased the commercial portion of the Stantec Tower for 345 million euros, which is about $500 million.

 

This is a huge step forward for the ICE District Phase Two, which includes plans to expand and develop the district east and north of the Rogers Place arena. The city has plans to erect 12 high-rise towers for mixed-use, and $2 billion have already been invested into the project.

 

The sale of the commercial portion of the Stantec Tower to a global real estate fund company shows the demand and the confidence level for global and national investors in Canadian CRE. The sale provides a huge ROI and enables the ICE District to keep investing in phase two.


 

Summary

 

Edmonton, Alberta continues to reap CRE investor’s major benefits and is drawing global attention. Global investors like Deka Immobilien are recognizing the potential of Edmonton and want to realize their vision. This transaction with Stantec Tower and Deka provides an attractive return on investment and frees up capital for Stantec to reinvestment in phase two of ICE District Properties.

 

Alberta and many other provinces throughout Canada have dynamic and vibrant cities with many investment opportunities in retail CRE. Contact ReDev today to learn more about the retail CRE investment opportunities that we have available.