Vancouver-based Anthem Properties Group has acquired Calgary-based United Communities for $200 million from former owner and CEO Don Douglas and various other individuals, the company announced March 6.
The cash-and-debt transaction will increase Anthem's exposure to Alberta, significantly add to Anthem's residential land development capacity and enable Anthem to gain a foothold in the U.S. market.
So far, Anthem's only Alberta involvement has been to develop commercial space and high-rise condominiums.
"This is really taking what is 99% of the time suburban or peripheral land and subdividing it into residential lots, primarily for single-family homes," Anthem vice-president of investments Bill Kennedy told Business in Vancouver. "So it's a new sector of the real estate business for Anthem."
United is a 40-employee residential land developer that entitles, develops and sells finished lots to home builders in Calgary, Edmonton and Sacramento, California. It also operates a home building division in Sacramento although that is a small part of its business, Kennedy said. Anthem had 175 staff before the transaction.
Anthem plans to keep the United Communities name and operate the company as a sister business to Anthem. United's management team will stay in place except for Douglas, who will step down and assume the role of chairman emeritus.
Anthem has been involved in projects in the U.S. but currently is only active in B.C. and Alberta
Its largest current project is at Station Square in Burnaby where, in conjunction with Beedie Group, it is renovating an old mall next to Metrotown and has plans to build five residential towers with 1,800 condominiums.
The first of those towers, a 36-storey, 255-home structure, is under construction and will also include retail space for Save-On-Foods, a TD Bank and Caffé Artigiano.
In the last few years, Anthem has also been buying land in Gastown and the Vancouver's Downtown Eastside including the Save-On-Meats building at 43 West Hastings Street and buildings at 190 Alexander Street and 425 Carrall Street.
