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Strategic Partnership Gives Rise to Landmark Joint Venture and Office Tower

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Hines is one of the largest privately held real estate investors, managers and developers in the world. Founded in 1957, the organization has a presence in 225 cities in 25 countries and $144.1 billion of assets under managementHines has 165 developments currently underway globally, and historically, has developed, redeveloped, or acquired 1,426 properties totaling over 472 million square feet. The firm’s current property and asset management portfolio includes 576 properties, representing over 246 million square feet.

Reliance Properties Ltd. is a privately owned Vancouver company that has been contributing to the city’s architectural heritage for more than 50 years. The firm provides proactive management and maintenance for all its properties and provides in-house leasing, maintenance, architectural and tenant improvement services.

In March 2021, Hines and Reliance announced their joint venture partnership to co-develop a 32-storeyClass AAA office tower at 1166 West Pender in Downtown Vancouver. The office project marks Hines’ foray into Vancouver and will be the most significant office development to be undertaken in the city since the onset of the global pandemic in March 2020.

The Colliers team of David Taylor and Robert Down were instrumental in getting this partnership – and development – off the ground.

Strong relationships and connection the foundation for success

David’s long-standing relationship with Reliance was strengthened five years ago when David acted on behalf of Reliance in the acquisition of 1166 West Pender Street.Upon purchasing the building, Reliance planned to rezone and redevelop it once then tenant Canada Revenue Agency relocated.

In the meantime, David kept communication lines open with Reliance. And it was just over a year ago when he and Jon Stovell, President and CEO of Reliance, had a conversation about Reliance’s co-development aspirations in Vancouver.

Robert’s relationship with Hines dates back more than five years. With presence in Toronto and Calgary, the international real estate firm had been, for a decade, seeking to enter the Vancouver market. For the last several years, Robert had been connecting with Hines’ John Wilbeck, Managing Director, and Syl Apps, Senior Managing Directoron prospective projects for Hines to undertake in the city that suited Hines’ development vision and requirements, as well as on potential development partners that could help Hines further expand its portfolio.

Working with Robert, Hines was close to securing a property in Vancouver’s Railtown districtbut the transaction failed to materialize. Fortunately, an even greater opportunity came to be, thanks to Robert and David’s strong working relationship and ongoing communication.

Recognizing that 1166 West Pender was just the type of property Hines seeks to develop and knowing that David had facilitated its sale to Reliance, Robert enquired on the status of the building. David put forward that Reliance would possibly be open to a partnership to develop 1166 West Pender.

The team then set the transaction in motion.

meeting of the minds leads to a groundbreaking partnership, solidified in the midst of the pandemic

It was late in 2019 when David and Robert made the introduction between Reliance and HinesAt this stage, 1166 West Pender was close to obtaining development permit approval. John Wilbeck and Syl Apps recognized Reliance as a highly active buyer in the Downtown Vancouver market and hence, a strategic partner with whom they could work to grow Hines’ portfolio.

This meeting signaled the start of a landmark partnership.

The transaction progressed in Spring 2020, at the height of the pandemic. All discussions and negotiations transpired virtually via Zooman aspect the Colliers team described as “pretty extraordinary”. 

The transaction closed in March 2021.

A first-of-its-kind Vancouver office tower

In the words of Hines, the new 1166 West Pender will be “the first office building in Vancouver that will incorporate new health, safety and wellness initiatives into the building architecture.

The buildingwill target LEED, WELL and WiredScore certifications, and will offer numerous features promoting tenant health and experience:

  • The entire third floor will consist of an innovative indoor and outdoor space with amenities including an employee lounge and collaboration area, a modular conference facility, a spa-quality fitness and wellness centre, and best-in-market end-of-trip facilities

  • The top nine levels will feature private outdoor terraces witnature and city views, elevating adherence to health, safety and wellness protocols 

  • Underground parking will be fitted with more bike stalls than parking stalls to support employee wellness and further sustainability practices

The new 1166 West Pender is slated for completion in late 2024 or early 2025with Hines managing the building.

“The partnership between Reliance and Hines is a milestone on several fronts,” says David Taylor, Senior Vice President with Colliers Vancouver Brokerage. It’s not every day that we see two powerhouse developers with a similar mindset join forces to not only partner, but to co-develop a project. This venture – and the resulting building point to the renewed vigour of the Vancouver office market, and will be a real asset to both developers, the city, and 1166 West Pender’s future tenants.

“1166 West Pender marks Hines’ entry into Vancouver, bringing a new and significant player to the market,” says Robert Down, Vice President with Colliers Vancouver Brokerage. “This mandate certainly will not be Hines’ last, with this global real estate firm setting out to grow its Vancouver portfolio, especially having had its eye on the city for a decade. By solidly establishing itself in this market, Hines will not only be building properties – it will also be creating industry and economic opportunity and growth, which are surely welcome bright spots following a volatile time for the sector.”


For More Information, Please Contact:

David Taylor

Senior Vice President | Personal Real Estate Corporation

Vancouver

David entered the commercial brokerage business in 2004 with a local boutique firm. He joined Colliers in 2008 as a financial analyst with the National Investment Team where he conducted valuation, marketing and detailed due diligence on primarily institutional grade real estate asset transactions.

 

Back in a brokerage role since 2011, he has been actively involved in investment origination, strategy and structuring of primarily development deals throughout Metro Vancouver. He also focuses on analyzing debt and equity capital markets to determine their impact on real estate valuations. His clients include private equity and public market investors, developers and local and offshore landowners.

 

David's specialization centres around urban income producing properties with redevelopment potential. He is a keen observer of local planning policy and its impact on values and property owners.

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Robert Down

Vice President | Personal Real Estate Corporation

Vancouver

Robert started his commercial brokerage career with Colliers New Zealand working with a founding partner of the New Zealand business service line. In 2008, Robert relocated to Colliers Victoria where he was involved in both occupier advisory and investment advisory services. Through his exposure to both tenant needs and investor requirements, he has been able to provide a unique platform as an investment advisor, providing unbiased services through the understanding of both sides to the deal. Robert joined Colliers Vancouver in January 2014 in order to advance his career by gaining exposure to larger more complicated deals in the broader Canadian market.

Robert has facilitated investment services totaling over $1 billion dollars and counts Institutional Investment Firms, HNW Private Capital, and Foreign Investors as his clients. Robert’s ability to foster long-lasting relationships coupled with his in-depth knowledge of the markets he operates in allows him to provide his clients with the advice they need to execute on their strategic investment requirements.

 

 

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