The BOW: after the pour

[Edward Skira]

There's a bunch of reasons with financing being a major one. Another is the economy. Bay Adelaide sat as a stump for 15 years because of a previous recession. This economy looks to be way worse. And oil prices being what they are Calgary certainly won't be immune when comes to reduced demand for office space.

 

[Ummagumma66]

did Bay-Adelaide have a anchor tenant? I can't remember. The Bow has its anchor tenant, Encana. I can't foresee the bow ending up as a stump. Although it is true, Calgary is home to the worst boom/bust cycle in North America. I think either Encana will step in and buy back the building or HR will get the funding necessary to finish.

 

[299 bloor call control.]

BA didn't have an anchor tenant but vacancy rates were low enough to warrant the risk to go ahead without one. Once it was finalized, the tenants signed on soon after. Not to mention construction started well before this mess started.

 

[taal]

I think it'll be fine ... how could it not go through?

Vacancy rates in Calgary are astonishingly low ... figures you don't see in any major NA city ... they need the extra space it seems. I dunno, seems like a sure thing to me ... I mean the building is 100% leased! What more can you as for.

How often does that even happen with buildings this size, 100% leased before construction starts ... might have been more common in the past but now a days I think that's unheard of - anywhere!

 

[DSC]

I think it'll be fine ... how could it not go through?

It seems to be a go again... Globe & Mail 24 December.

" Globe and Mail Update — H&R Real Estate Investment Trust has raised $200-million by placing debentures with Fairfax Financial Holdings Ltd. and is cutting its distribution to help pay for a Calgary skyscraper known as The Bow.

Fairfax has agreed to purchase the five-year, 11.5 per cent unsecured debentures, the trust said in a statement.

The REIT will also cut its monthly cash distributions to unitholders by half to $0.06, and the money saved will be used to finance construction of The Bow, where EnCana Corp., Canada's largest energy company, has agreed to locate its head office.

The Toronto-based REIT said in November that the development of the $1.4-billion skyscraper would continue, even though the global financial crisis had dried up funding. The trust had also said that it could be forced into selling assets, including The Bow, to address financial challenges.

 

[jks]

The Toronto-based REIT said in November that the development of the $1.4-billion skyscraper would continue, even though the global financial crisis had dried up funding. The trust had also said that it could be forced into selling assets, including The Bow, to address financial challenges.

Wait, so after they finish it, they might sell it right away?? Who would even buy it in this economy??

 

[maestro]

BA didn't have an anchor tenant

forget who but BA did have a 450,000 square foot anchor when shovels hit the ground

Vacancy rates in Calgary are astonishingly low ... figures you don't see in any major NA city ... they need the extra space it seems. I dunno, seems like a sure thing to me ... I mean the building is 100% leased! What more can you as for.

Calgary's low vacancy rates aren't as astonishing as they used to be. They are no longer the lowest in the country and, as far as Class A is concerned, even Toronto's are lower. They also have, by far, the highest precentage of space under construction to existing inventory. You're right, the building is fully leased, well, at least for now.

 

[simply Dan]

It will be interesting to see what happens to the Alberta economy now that they continue digging an increasingly worthless commodity out of the ground...

 

[Edward]

The Alberta government is predicting a deficit for the next fiscal year. Quite the turn around.

 

[CityPlaceN1]

I do hope it gets built. Can't wait to see what it looks like completed.

 

[simply Dan]

http://www.theglobeandmail.com/servlet/story/LAC.20090305.RTICKERA05-10/TPStory/?query=Encana

Financing of EnCana's HQ faces a delay
NATHAN VANDERKLIPPE

March 5, 2009

The construction financing of EnCana Corp.'s new $1.5-billion Calgary headquarters has been delayed by more than a week, the company building the iconic new tower announced. H&R REIT said it has hired RBC Capital Markets and TD Securities to raise the remainder of its $425-million construction loan for The Bow, after those banks said they would commit $250-million to the building if they succeed in bringing in the rest from other parties. H&R REIT initially said it expected to complete its construction financing by March 31. It now says it hopes to finish by April 9. It needs to raise the remaining $175-million before RBC and TD will release their financing. Fairfax Financial Holdings Ltd. also requires that funding be in place before it will buy $200-million in debentures.

 

[Ummagumma66]

I will update this next week, although I doubt I'll be able to get in to Police HQ again, I had surgery in Feb, and my cast is off on Wednesday,so I wanna get out do a little photo update done, I can tell you, for those that don't know the Bow is now about 5 stories out of the ground and it shows no signs of slowing down.

 

[simply Dan]

Hopefully the money will continue to flow from Toronto banks so the steel can arrive on time from Hamilton mills!

 

[khristopher]

The steel for this project is coming all the way from Hamilton? Do they not have steel plants in Alberta?

 

[Ummagumma66]

Some of the steel is from Edmonton.