Vancouver-based real estate developer Bentall Kennedy has bought the three-quarter-acre 3 Eau Claire site in Calgary for $39.6 million.
“I can confirm the transaction,” said Tony Astles, executive vice-president of Bentall Kennedy. “The property was acquired by Bentall Kennedy on behalf of the Prime Canadian Property Fund.”
A project planned for the site collapsed into receivership in 2014.
The former ownership group, led by South Korea-based Solex, once had ambitious plans for the property. The development was to include about 650,000 square feet of condos, retail space and office towers when it was unveiled in the spring of 2012. The concept included two connected towers overlooking the Bow River.
Shaw Communications had originally planned to occupy 12 floors of office space, but pulled out of the project last year. The project failed, owing creditors nearly $60 million, most of which will likely never be repaid.
Deloitte Restructuring Inc., which acted as trustee for 3 Eau Claire, said the property consisted mainly of development land.
“It is anticipated that there will be a significant shortfall in satisfying the claims of the secured creditors and that no funds will be available for distribution to the unsecured creditors,” said Deloitte in a court document.
Bentall Kennedy is one of North America’s largest real estate investment advisors with about 500 investors. It holds 134 million square feet of office, retail, industrial, and multi-residential properties valued at more than $32 billion throughout North America.
