Avigilon to purchase building to support growth
Avigilon Corporation has announced that it has agreed to purchase a nine-story, 135,000 square foot office building from TELUS Communications Inc. and TELUS Communications Company, located at 555 Robson Street in downtown Vancouver, Canada for $42 million.
“This purchase is a sound investment that will help secure Avigilon’s future,” said Alexander Fernandes, Avigilon’s founder, president, CEO and chairman of the board. “It will support our rapidly expanding workforce and serve as a distinguished location for our global headquarters.”
The building is adjacent to TELUS Garden, a $750 million real estate project currently underway. When completed, the million-square foot development will represent one of the most technologically innovative and environmentally-friendly communities in the world, boasting a new office tower, a stunning residential tower, landscaped outdoor space, and a variety of retail shops and restaurants. In addition to its prime location, the building has been updated in recent years with the latest technology infrastructure, which is expected to allow for a seamless transition for Avigilon’s knowledge-based employees to work in a high-tech environment.
Avigilon has paid a $2 million deposit to purchase the building. The closing of the purchase is conditional upon Avigilon paying the balance of the purchase price, completion of certain required construction work, registration of applicable documentation with the City of Vancouver, and other conditions customary for a transaction of this nature. Avigilon expects the transaction to be completed in October 2015, and to transition its Vancouver-based employees to the new space in 2016.
Avigilon has several financing options available in connection with the purchase and will make the final determination in connection therewith closer to the closing date. Financing possibilities include, without limitation: mortgage; debt; equity raise; or using a portion of Avigilon’s working capital. In the event that Avigilon elects to finance the building acquisition through a mortgage or similar debt financing, the monthly financing costs are expected to be on par with, or less than, the rent Avigilon currently pays for its leased office in Vancouver. This sound investment along with financing flexibility positions Avigilon well to continue its ongoing industry-leading growth.
“We look forward to welcoming such an innovative B.C.-based company as our new neighbour on one of the most sustainable downtown blocks in North America,” said Andrea Goertz, chief communications and sustainability officer, TELUS. “Selling this building as we move into our new national headquarters on the same block will free up significant cash we plan to invest back into broadband data infrastructure throughout the Lower Mainland, supporting our drive to offer TELUS customers the best, most advanced technology and service.”
Avigilon has been recognized by Deloitte as one of the world’s fastest-growing technology companies, including being ranked for five consecutive years on the Fast 50 list in Canada and four consecutive years on the Fast 500 list for North America.
“We are excited about this new investment and the security it brings to our future. With innovation and rapid growth in mind, we are ensuring our employees work in a world-class environment and community,” said Fernandes.