Robson Telus tower flipped and sold for double the value

Avigilon bought the tower in 2015 for a fraction of its recent sold price

By
Western Investor
May 18, 2017





telus tower
Sale-lease-back deal of Vancouver office tower “unlocks $100 million in cash.” | Business in Vancouver

 

Avigilon has sold a former Telus office tower for more than twice what it paid for the Robson Street building less than two years ago.

The Vancouver security company sold the nine-storey tower to an undisclosed buyer for approximately $107.5 million.

Avigilon announced the deal last week.

The company purchased the building in November 2015 for $42 million, said James Henderson, Avigilon’s chief operating officer.

The recent sale is a sale-lease-back arrangement that will allow Avigilon to use the renovated 135,000-square-foot space.

“We're very pleased with the investment we made in the building," said Alexander Fernandes, Avigilon's founder, president, CEO and chairman of the board. "The transaction unlocks over $100 million in cash, will substantially reduce our debt, and secures a state-of the-art facility to support our growing business.”

The sale is subject to certain conditions typical for a transaction of this nature, including completion of the purchaser's due diligence, completion of applicable filings, and finalization of the terms of the building lease.

The property, including the building, was valued at $46.8 million last year, according to BC Assessments.

The tower, located at the corner of Robson and Seymour streets sits adjacent to the $750-million Telus Garden development. The Robson Street tower was the former Vancouver headquarters for Telus.

The deal was brokered by Kevin Nelson of CBRE Ltd.


Frank O'Brien is the editor of Western Canada's biggest commercial real estate newspaper, Western Investor, as well as a contributing editor at West Coast Condominium, real estate contributor to Business in Vancouver and a regular media commentator on real estate investment.
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