The City of New Westminster recently announced the sale of the Merchant Square office tower shell to 777 Columbia for $36.5 million.

Merchant Square, which is part of the Anvil Centre project in the historic district, is currently under construction. Purchasing company 777 Columbia is jointly owned by Duke Holdings and Kingswood Capital. The latter is majority-owned by Vancouver businessman and philanthropist Joe Segal.

“The sale of the office tower at Eighth and Columbia is a significant part of our vision for the city’s economic development and revitalization of the downtown core,” says Mayor Wayne Wright. “The involvement of such a respected business luminary as Mr. Segal in our city is solid proof that New Westminster is once again being seen as a great place for business to thrive and grow in Metro Vancouver.”

As part of the purchase agreement, the purchaser assumed responsibility for tenant improvements of the Class A, targeted LEED Gold office space. As a result, the city will not require the $9.5 million it had budgeted for the completion of the nine-storey office tower. The city remains the owner of the Anvil Centre, which is Metro Vancouver’s newest mid-sized conference centre.

“When we made the decision to pursue office tower construction in 2012, we did so knowing the many benefits that this project will bring to the city,” Wright says. “The office tower and Anvil Centre are on track for completion later this spring and we look forward to welcoming everyone to these great new assets not only for our community but all of Metro Vancouver.”