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ASPAC, a subsidiary of
Hong Kong's Sun
Hung Kai Properties won last three residential sites in
Vancouver's Coal Harbour
NEWS
STORY
Bidding
war brews over Coal Harbour properties
A bidding war is brewing in Coal Harbour
for the three remaining waterfront residential building sites owned by
Canadian Pacific Properties Inc. and its Hong Kong-based joint-venture
partner.
The prime pieces of land, designated for
luxury condominium towers, are expected to fetch more than $60 million.
The three sites are zoned to accommodate
680,000 square feet of development, totalling 500 residential units.
Singaporean-controlled Delta Land
Development Ltd. feels it has the inside track, but various other major
Vancouver developers are waiting in the wings with their offers.
Interested parties include Bosa
Development Corp., Concert Properties Ltd., Polygon Group, Wall Financial
Corp., and Westbank
Projects, as well as Canadian Pacific's minority partners, Aspac
Developments, owned by Hong Kong's billionaire Kwok
brothers.
"We firmly believe we'll pin down
these three sites," said Delta Land's Vancouver president.
"I know there are other people out
there, but the bottom line is we're confident we're going to do a deal.
"If we don't reach an agreement,
it's thrown open to the market."
Delta Land is currently building an
$85-million, 26-storey 112-unit condo tower, called Carina, immediately west
of the three coveted lots at Cordova and Bute.
The company recently closed on a
$20-million deal to purchase an adjacent second site, where it plans to
develop a $110-million, 35-storey, 130-unit highrise, with completion three
years from now
Delta Land's Singaporean principals are
significantly "encouraged" by Vancouver's upscale condo market,
particularly in the Coal Harbour area, where 10 projects are currently under
construction, including two towers by Aspac.
Graeme Stamp, executive vice-president of
CP's subsidiary, Marathon Developments, confirms Delta Lands gets first stab
at acquiring the three remaining sites, although he refuses to give specific
details of their agreement.
"We're sitting down with Delta Land
to negotiate a deal," Stamp said, declining to say whether there is a
time limit.
Aspac senior vice-president Robert Pearce
said while the Kwok brothers are interested in the three sites -- they
already hold a 25-per-cent equity position -- they would likely allow the
land to be sold to someone willing to pay market value.
"Both CP and the Kwoks have an
obligation to their shareholders to get the best possible deal," Pearce
said
Aspac is developing its third condo
tower, the $95-million, 95-unit Escala, beside the Coal
Harbour marina, and is currently
marketing its final two phases, Cascina and Denia, totalling 237 units worth
$140 million.
Westbank Projects plans to develop an
$185-million, 41-storey office-residential tower, called the Shaw Building,
just behind the Marine Building on the Marathon site.
"Yes, we're interested in the three
remaining sites," said Westbank president Ian
Gillespie. "It's a fantastic location, but it's a challenge.
There's a lot of product down there.
"Whoever's going to buy them is
going to need a long horizon to build them out."
Meanwhile, flamboyant developer Peter
Wall is known to covet Marathon's site designated for an 800-room hotel,
directly behind the proposed $495-million convention centre expansion west
of Canada Place. -
2001 June 9 Vancouver
Sun
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