Ivanhoe Cambridge is investing in a new mixed-use project in Quebec City, dubbed Project QB.

The development, to be located in the Cité-Universitaire district, will eventually feature more than 400 rental units and 200 condominiums. The company will work with a group of local investors and SDLP, the Sobeys Inc. real estate division.

With an initial investment of $50 million from Ivanhoe Cambridge, the first stage of the development will include an apartment building with about 300 rental units, a condo building with 100 units and more than 43,000 square feet of commercial space. Work of this phase is scheduled to begin at the end of summer 2014.

Quebec City’s Cité-Universitaire district is expected to experience substantial growth over the next several years, with Projet QB part of a larger plan to revitalize the area.

“Quebec City has been one of the best-performing cities in Canada in terms of employment and per-capita income growth,” says Sylvain Fortier, executive vice-president of residential, hotels and real estate investment funds at Ivanhoe Cambridge. “Already well-established in the neighbourhood with our Laurier Québec and Place Ste-Foy shopping centres, we are proud to contribute to the socio-economic development of the community, while also generating attractive returns for our investors.”

Construction on the first phase of the project is expected to last for up to three years.