Calgary, Alberta - The Penny Lane Development ownership group have confirmed today that they will be commencing construction of their newly designed project in 2007. Demolition of the existing property will begin on an expedited basis, possibly as early as April, with construction scheduled to start in December 2007. As an expression of the confidence the group has in the Calgary market the ownership group will be proceeding with the project on this schedule without the benefit of an identified lead tenant.

The project is slated for completion and occupancy in early 2011. This first phase of the site will house a 48 story, one million square foot commercial space for office and retail occupancy. The development will also include an indoor winter garden and outdoor park.

The Penny Lane Development ownership group consisting of Alberta Investment Management, Matco Investments Ltd. and SITQ, a subsidiary of Caisse de dépôt et placement du Québec, are also pleased to announce that they have engaged Hines, a privately owned, international real estate firm, to assist with the development.

Hines, as Development Manager, have augmented the existing Penny Lane development team with the engagement of a world-class design team, led by internationally recognized architectural firms Pickard Chilton and Kendall Heaton Architects who will join Gibbs Gage Architects, the architects of record, and 20 VIC Management Inc., the owners’ representative on the team.

“The Penny Lane owners are excited about having Hines join their development team and with the track record and talents of the design team, I am certain that this project will become a landmark property that the citizens and business community of Calgary will embrace,” says John Smith, Vice President, 20 VIC.

Demolition of the existing buildings is scheduled to be completed approximately three months after the demolition commences and it is currently anticipated that by early July the site will be cleared to ensure there is minimal disruption during the annual Calgary Stampede. In addition, the area along 9th Avenue between 4th and 5th Streets will be left intact until after the Stampede to ensure that the annual parade and other activities can take place according to the long established Calgary tradition. Construction of the new structure will commence in late December 2007, with occupancy scheduled for 2011.


For more information, please contact:
John W. Smith, Vice President, 20 Vic Management Inc.
403-441-4933