Bentall Kennedy, on behalf of  the Bentall Kennedy Prime Canadian Property Fund and some other of its pension fund clients, has purchased Bentall 5 for approximately $400 Million, representing almost $700 per sq ft, and a cap rate below 5%. The Vendor in the transaction, the German bank Deka Immobilien GmbH, had purchased the tower just three years ago for $297 Million.

Paul Zemla, Chief Investment Officer for Bentall Kennedy’s Canadian operations told PR newswire: “Following direct discussions with Deka, we were very pleased to pursue this “AAA” office asset. Our knowledge and comfort with Bentall V, which we developed and have managed since its inception, combined with the very attractive long term prospects for the Vancouver office market made this a unique opportunity for our clients”.

The tower, completed in 2002 and expanded in 2007, contains approximately 580,000 sq ft of AAA office and retail space.

This deal represents a new benchmark for valuations of AAA office buildings in Vancouver.

Yesterday evening Vancouver City Council unanimously approved Manulife Financial’s proposal to rezone 980 Howe Street from DD (Downtown District) to CD-1 (Comprehensive Development).  The proposal was for a 16 storey office building with a total floor area of 268, 908 square feet, a floor space ratio of 11.2 and a height of 200 feet.

The 5th Floor at Jameson House, 838 West Hastings Street has been sold for $4,100,000, representing $700 per sq ft. The office floors have been listed for sale for several months. The purchaser is a user that will occupy the space.