Westbank is partnering with Allied Properties in the redevelopment of 489-539 King Street West in Toronto. Allied announced it will retain full ownership of existing buildings at 511-529 King Street West, known as the Heritage Component of the site. Westbank will buy a 50 per cent interest in the remaining property.

Project design architect Bjarke Ingels Group intends to initiate the approval process so the sale can close quickly. Meanwhile, Allied will own and operate the property as part of its rental portfolio, while Westbank will equally share the predevelopment costs.

“What is so exciting here is that Allied has over time assembled 620 feet of frontage on what is fast becoming one of the most interesting streets in Toronto,” said Ian Gillespie president of Westbank. “With this scale, we have a unique opportunity for world-class city building.”

Overall, the King Street mixed-use project is comprised of office, retail and residential uses, with the residential component being sold as a condominium. Upon completion, Westbank will become development manager, while Allied will manage the office and retail components.

“This is another good example of our expanding opportunity set,” said Michael Emory, president and chief executive officer of Allied. “With a proven and compatible partner in Westbank, we’ll be able to realize the value inherent in this site sooner and on a risk-appropriate basis. We’ll also be able to ensure that the site makes an optimal contribution to King and Spadina, one of Toronto’s most extraordinary downtown neighbourhoods.”