TransCanada Signs Development Agreement for New Office Tower in Calgary

Strategic Insights -

TransCanada PipeLines Limited has announced a significant development in its expansion plans, signing a development agreement with H&R Developments to construct a new office tower in downtown Calgary. The tower, valued at $200 million, will provide necessary space for TransCanada's rapidly expanding energy services businesses, including its proposed merger with NOVA Corporation. The agreement reflects the value of TransCanada's long-term tenancy and will accommodate growth associated with the proposed merger.

Key Takeaways:

  • TransCanada has signed a development agreement with H&R Developments to construct a new office tower in downtown Calgary.
  • The tower, valued at $200 million, will be located on the former Greyhound bus terminal site and will provide space for TransCanada's rapidly expanding energy services businesses.
  • The agreement is conditional on receipt of the building permit and is expected to be completed by June 1, 2001.
  • The tower's design has been modified to accommodate growth associated with the proposed merger of TransCanada and NOVA Corporation.
  • TransCanada will continue to occupy its main premises in the Petro-Canada building and other leased space in Calgary until the completion of the new building.
  • The deal allows TransCanada to change the size of the new building if the merger is not approved.
  • TransCanada PipeLines Limited is one of North America's leading energy services companies, managing a Cdn$15 billion asset base.

Statistics:

  • $200 million: the value of the new office tower
  • 1 million square feet: the size of the new office tower
  • 3 years: the expected construction period, from September 1998 to June 1, 2001
  • 4th and 5th avenues: the north and south boundaries of the tower site
  • 1st street: the western boundary of the tower site
  • 15 billion CAD: TransCanada's asset base
  • TRP: TransCanada's stock ticker symbol

Sources:

  • TransCanada PipeLines Limited press release (PRNewswire, May 5, 1998)
  • http://transcanada.com
  • Calgary Herald
  • City of Calgary
  • H&R Developments

Note: The original text has been used as the source for this analysis.