Toronto Southcore Financial Centre & Delta Toronto | 159.71m | 45s | GWL | KPMB

[Red Mars]

Pics taken June 10, 2011

 

[canarob]

They're still syaing December 2013...

At 96% Leased, Anticipation Grows For the Fall Completion of PwC Tower at Southcore Financial Centre

TORONTO, June 14, 2011 /CNW/ - British Columbia Investment Management Corporation (bclMC) announced today that PwC Tower, the first of two office towers at Southcore Financial Centre (SFC), a major mixed-use complex being built in Toronto's emerging southcore financial district, is now 96 per cent leased.

Some of the tenants joining anchor tenant PwC, a leading accounting and consulting firm will be: RSA Canada, a leading Canadian personal and commercial P&C insurer; SNC-Lavalin, an engineering, procurement, construction and related technical services organization; and Avison Young, Canada's largest independently-owned commercial real estate services company. Occupancy will begin in the Fall of 2011.

"We are delighted to welcome the quality companies who will soon occupy the premises at Southcore Financial Centre," said Chuck Swanson, Vice President, Real Estate, bclMC. "This project reflects our commitment to advancing the development of sustainable office space and to providing our tenants with a productive working environment."

Encompassing a full block in the southern part of downtown Toronto from York Street to Lower Simcoe Street, and within walking distance of King and Bay, the SFC complex will be built to a high level of sustainability with PwC Tower and the soon to be constructed 30-storey, 700,000 sq. ft. Bremner Tower both targeting LEED® Gold certification. The Bremner Tower is projected to be completed by December 2013.

When complete, SFC will offer 1.4 million sq. ft. of office space in two office towers, and a 45-storey Delta Toronto, a next-generation, premium four-star hotel. Office space is designed by award-winning KPMB Architects. The Delta Toronto is designed by Paige + Steele / IBI Architects.

The project is being developed by GWL Realty Advisors Inc. on behalf of bclMC. The full complex is scheduled for completion in 2014.

To learn more about Southcore Financial Centre, visit www.southcore.ca.

About bclMC

bclMC is an independent investment management corporation based in Victoria, British Columbia that manages a globally diversified investment portfolio of more than $86 billion as at March 31, 2011. Supported by industry-leading expertise, bclMC invests in all major asset classes, including infrastructure and other strategic types of assets. bclMC's clients include public sector pension plans, public trusts and insurance funds. For more information, visit www.bcimc.com.

About GWL Realty Advisors Inc.

GWL Realty Advisors Inc. is a leading real estate investment advisor providing comprehensive asset management, property management, development and specialized real estate advisory services to pension funds and institutional clients. For more information, visit www.gwlra.com.

 

[caltrane74]

Looks like they are excavating the full site. - I know that was always the plan, but I had heard, they might only move forward with the Hotel (Delta) at this time.

 

[TOareaFan]

Looks like they are excavating the full site. - I know that was always the plan, but I had heard, they might only move forward with the Hotel (Delta) at this time.

I don't think that would make much sense....the hotel gets connected to Union and thus the path/city via a connection through the two office buildings.....so I think they were always gonna have to develop the second office building at the same time (or before)....the good news about the first building being full is that a) any tenants looking in the area really only have their 2nd building as an option and b) they will probably (on their "books") be holding this as a single asset/portfolio and can report that their southcore office project is +/- 50% leased (that always sounds better).

 

[Big Daddy]

TORONTO, June 14, 2011 /CNW/ - British Columbia Investment Management Corporation (bclMC) announced today that PwC Tower, the first of two office towers at Southcore Financial Centre (SFC), a major mixed-use complex being built in Toronto's emerging southcore financial district, is now 96 per cent leased.

96% leased is HUGE! Most developers would be very happy with 70% or less. Given “full occupancy†is around 90% when valuating. I think this is a very positive sign of the demand for office space. ICE is now proceeding with their office building as well and rumours persist about BA East.

 

[UrbanAffair]

I agree with you that its a good sign, but since we do discounted cash flow analysis when valuating property like this, since it is an income producing property, It doesn't matter that much when valuating a property that its 90% occupied presently, since terms of each lease need to be analyzed in detail throughout the lifetime of the investment, 90% now could be 50% if the market turns or one fails to give incentives to renew come renewal time for each leasee. (Unless you meant valuating full occupancy consideration in order to achieve financing and proceed with construction.)

really Ice has announced they are proceeding as well? Thats great! This little area will be complete pretty much in 3 years or so if thats the case...

 

[gweed123]

Looks like they are excavating the full site. - I know that was always the plan, but I had heard, they might only move forward with the Hotel (Delta) at this time.

I wonder what will happen to the Delta Chelsea once this new Delta opens up. Seems like that hotel is prime for redevelopment, now that Aura is right across the street.

 

[TOareaFan]

I wonder what will happen to the Delta Chelsea once this new Delta opens up. Seems like that hotel is prime for redevelopment, now that Aura is right across the street.

Delta is a hotel management company and does not own many (any?) of the hotels with their brand. Just because BCIMC/GWL have hired them to run their new hotel does not mean whoever owns the old one has to give up the brand. Example, there are two Delta's in the downtown area of Montreal (one on President Kennedy and one on University. They are quited different in style and amenities and, I imagine, are owned by different people/groups).

 

[marcus_a_j]

really Ice has announced they are proceeding as well? Thats great! This little area will be complete pretty much in 3 years or so if thats the case...

They have recently submitted their Site Plan Approval application. While that's a necessary part of the process, it does not necessarily mean they are going ahead with it at this time. I would wait for an announcement from Caddilac Fairview (eg. press release) before suggesting that it is indeed going ahead.

 

[Automation Gallery]

They have recently submitted their Site Plan Approval application. While that's a necessary part of the process, it does not necessarily mean they are going ahead with it at this time. I would wait for an announcement from Caddilac Fairview (eg. press release) before suggesting that it is indeed going ahead.

Well they are knocking down the sales centre for Ice...thats a start, i guess we will have to wait and see.

 

[gweed123]

Delta is a hotel management company and does not own many (any?) of the hotels with their brand. Just because BCIMC/GWL have hired them to run their new hotel does not mean whoever owns the old one has to give up the brand. Example, there are two Delta's in the downtown area of Montreal (one on President Kennedy and one on University. They are quited different in style and amenities and, I imagine, are owned by different people/groups).

I realized that they were different 'owners', but I just figured that head office would have mandated that the old one be closed when that new one opens. Thanks for the info though, I didn't know that.

 

[alklay]

There are two Inter-Continentals downtown and four Marriotts. The Delta Chelsea is not going anywhere due to this property being built.

 

[TOareaFan]

I realized that they were different 'owners', but I just figured that head office would have mandated that the old one be closed when that new one opens. Thanks for the info though, I didn't know that.

The management company would have no incentive to "close" one...they make more money managing two hotels than 1 and can probably use it as a sales feature to the two owners ("When property A is full we will direct inquiries to B and vice versa")....what it probably means, though, is that the next time the management contract at the Chelsea comes up for bidding (who knows when that is!) Delta would likely be a less aggressive bidder as their brand would remain in Toronto whether they won that bidding or not.....so, eventually, you may see the Delta name come off of the Chelsea but it is not a direct "we have one so shut the other down" sorta thing.

 

[Northern Magus]

My guess is that the two Deltas would be pursuing different target markets, so there probably wouldn't be any problemsmfrom that.

 

[Filip]

Exactly as someone mentioned above, Montreal has two Deltas; the Centre Ville and the Montreal Delta.

Both obviously chase a different target market. The Delta Montreal is a lot less glamorous than the Centre Ville and their price points reflect that.