Saturday, February 24, 2007

EnCana Signs $1.1 Billion Build-to-Suit For Calgary HQ

Business Edge News Magazine - February 23, 2007

EnCana Corp. (TSX:ECA) has turned over its $1-billion-plus Bow office-tower project to H&R Real Estate Investment Trust (TSX:HR.UN) and signed a 25-year lease on all of the landmark 59-storey building. The natural gas and oilsands company said it received $70 million on the sale, and this amount "largely represents EnCana's investment to date."

The lease, described as the largest single-tenant lease in Canadian history, carries an initial rental rate of about $36 per square foot for "state-of-the-art office space in the Calgary market" upon the project's completion, scheduled for 2011.

The sale includes the development plans and contracts for the 1.9-million-sq.-ft. building on the north block between 5th and 7th Avenues between Centre and 1st Streets S.E., which will be the tallest office building in Western Canada, and the 200,000-sq.-ft. development on the south block.

The crescent-shaped north block building is budgeted at $1.1 billion, with construction to begin this summer. The development is intended to consolidate EnCana's current office space spread over five downtown Calgary buildings. Sphere: Related Content

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