Allied Properties REIT announced today that it has established a joint-venture arrangement with Westbank (the “King & Spadina JV”) to redevelop 489-539 King Street West in Toronto. Allied will retain full ownership of the existing buildings on 511-529 King West and sell to Westbank an undivided 50 per cent interest in the remainder of the Property based on current appraised value.
The sale to Westbank will close once site-plan approval is obtained. In the interim, Allied will own and operate the property as part of its rental portfolio, and Allied and Westbank will share the predevelopment costs on an equal basis.
The King & Spadina JV intends to pursue a uses, with the residential component being sold as a condominium. It has retained Bjarke Ingels Group (BIG) as the design architect for the project. Westbank will be the development manager for the project, and Allied will manage the office and retail components of the project on completion.
“What is so exciting here is that Allied has over time assembled 620 feet of frontage on what is fast becoming one of the most interesting streets in Toronto,” said Ian Gillespie of Westbank.