Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

H&R Real Estate Investment Trust has won Calgary's prize development project, paying about $70-million to oil and gas giant EnCana Corp. to assume ownership of The Bow, an ambitious office, retail and cultural complex that will include Canada's tallest building west of Toronto.

In a news release, H&R said EnCana, which will use the 59-storey office tower as its new headquarters, has committed to leasing the all 1.84 million square feet of office space and all 700 parking stalls for 25 years.

Construction is slated to begin this summer and be completed by the fall of 2011. The project is budgeted at $1.1-billion.

Story continues below advertisement

EnCana announced plans for the project last fall, unveiling a visually alluring crescent-shaped glass-and-steel tower design from renowned international architects Foster + Partners of London. The design is also highly energy-efficient, with energy consumption expected to be about 30 per cent lower than conventional office towers.

At the time of the fall announcement, EnCana said it would look for a real estate developer to buy the project in exchange for a 25-year lease commitment. "Two years ago, we set out to bring all of our Calgary staff, who currently work in five downtown buildings, under one roof," said John Brannan, EnCana's executive leader of the building project.

"From the start, we sought to secure an attractive Calgary headquarters for our company at competitive, long-term office lease rates. Having reached a stage of the project where we have accomplished our long-term objectives, we are selling it to a leading office developer with extensive experience building and managing commercial real estate. We expect to realize significant benefits when we occupy the new building," he said.

"We are thrilled to be developing EnCana's world-class headquarters," said Tom Hofstedter, H&R's president and chief executive. "The Bow will be the largest single-tenant office complex in western Canada and will become, upon completion, the premier trophy property in H&R REIT's 41-million-square-foot portfolio."

EnCana's initial rental rate on the office space will be about $36 per square foot, and the lease includes annual contractual rent increases of 1.5 per cent. H&R said the rental payments in the first year represent a yield of about 6.25 per cent on the office tower's budgeted cost of about $582 per square foot.

The project will take up most of two city blocks in downtown Calgary, between 5th and 7th Avenues and Centre and 1st Streets S.E. The tower is on the north block of the complex, while the south block will contain a 200,000-square-foot mixed-use building containing office and retail space project as well as space set aside for cultural and arts facilities. There has been talk that the National Portrait Gallery could relocate to the building from Ottawa. The complex will be next to the Petro-Canada Centre to the west, which includes Calgary's current tallest building, the Telus Tower to the north, and the Hyatt Hotel to the south.

The project will more than double H&R's property holdings in the hot downtown Calgary real estate market. The company said that once The Bow is completed, it will have 3.3 million square feet of office space in Calgary's core, including three AAA-class office towers - the Telus Tower and the TransCanada Tower being the other two.

Story continues below advertisement

H&R said it expects to secure a fixed-price construction contract in early 2007 and long-term debt financing by the end of 2007.

The Ledcor Group of Companies, which is based in Vancouver, acted as adviser to H&R on the transaction. RBC Capital Markets Real Estate Group Inc. acted as EnCana's adviser.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies