Toronto-based pension fund OPTrust has completed a buyout of Vancouver-based developer Westbank from the landmark Sen̓áḵw project by the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation) in British Columbia, the partners announced on Thursday.
Sen̓áḵw is a sprawling multi-phased project planned for 10.5 acres near the western end of the Burrard Bridge in Vancouver. It is set to include over 6,000 new homes and was given a $1.4 billion loan by the Government of Canada in 2022, which remains the largest loan ever granted by the CMHC.
Phase One of Sen̓áḵw consists of three towers on the western side of Burrard Street: a 27-storey tower, a 32-storey tower, and a 40-storey tower. The first phase will deliver 1,400 new rental homes and is nearing completion, with doors expected to open in 2026. It will also deliver a three-storey pavilion that includes a gym, pool, wellness centre, and lounge, plus retail space and greenspace.
The Squamish Nation and its members chose prominent developer Westbank as their partner for Sen̓áḵw in 2019 and formed a 50-50 partnership with Westbank on the project. By the time then-Prime Minister Justin Trudeau announced the $1.4 billion loan on September 6, 2022, however, OPTrust had already been brought in and was identified as a partner in the press release.
OPTrust's original stake in the project is unknown, but the pension fund — which manages investments on behalf of the Ontario Public Service Employees Union (OPSEU) — announced on Thursday that it had increased its ownership stake to 50% following the acquisition of Westbank's stake. Financial details were not disclosed.
Westbank only owned a stake in the first and second phases of Sen̓áḵw, which will now be co-owned between the Squamish Nation and OPTrust. For the remaining two phases, the Squamish Nation will retain 100% ownership, the Nation said in a joint press release with OPTrust.
"Sen̓áḵw is a transformative development that supports the long-term retirement security of our members while delivering critical housing supply to the Vancouver community, including much needed affordable housing units," said OPTrust President and CEO Peter Lindley. "This is one of the largest First Nations, non-resource, economic development projects in Canadian history; we are proud to deepen our partnership with the Squamish Nation whose vision and values are highly aligned with ours."
One of the Phase One towers at Sen̓áḵw. / OPTrust, Squamish Nation
According to the Squamish Nation, OPTrust was brought in to Sen̓áḵw to "strengthen its financial backing and long-term stability." The $1.4 billion CMHC loan was for the first two phases and the Nation is not required to inject any funds into the first two phases. However, the Nation says that it, at an unspecified time, made a short-term loan to the project partnership through the Squamish Nation's economic development arm, Nch’ḵay̓ Development Corporation, in order to keep construction going steadily. That loan, plus interest, has since been paid back to the Nation with funds provided by OPTrust, according to the Nation.
"This decision to support the sale of Westbank’s share to a strong Canadian pension fund was rooted in protecting the Nation’s business interests in the project, strengthening the future of this development and honouring our Nation’s sovereignty," said the Nation in an FAQ also published this week.
In a statement provided to STOREYS, Westbank said they were proud to have been involved in the project and to have helped the Squamish Nation foster its development expertise.
"From its early inception, Sen̓áḵw has always been envisioned as a capacity-building project for the Squamish Nation," said Westbank. "The Nation has substantial land holdings and will be developing those lands for decades to come – from the outset an important mandate of Sen̓áḵw was to help foster the development expertise that would allow the Nation to develop projects on their lands, whether on their own or in partnerships. In that context, on completion of Phase 1, the Squamish Nation’s development group, Nch’ḵaý Development Corporation, will be taking on a greater leadership and oversight role in the Sen̓áḵw development, with Westbank transitioning out of future phases. This transition reflects the capacity the Squamish Nation has built through this project and their readiness to lead development on their ancestral lands. We are proud to have supported the Nation through this first phase and look forward to continuing our strong relationship on future initiatives."
In their press release on Thursday, the Squamish Nation / Nch’ḵaý Development Corporation also alluded to their increased role.
"Nch’ḵaý is increasing its leadership at Sen̓áḵw as we welcome residents home,” said Nch‘ḵay̓ CEO Mindy Wight. "Nch’ḵay̓ will have greater oversight related to certain aspects of construction and development while continuing to collaborate closely with the Nation on all cultural, artistic, and language elements of Sen̓áḵw. This demonstrates the Squamish Nation's continued commitment to managing real estate assets and property development on our lands, in line with our longstanding vision of leadership in sustainable, community-driven development."
Excavation on Phase Two of Sen̓áḵw is expected to commence later this year.
