Westbank sells stake in massive Squamish Nation housing development in Vancouver

BRENNA OWEN (CANADIAN PRESS) - Developer Westbank Corp. has sold its entire stake in the Squamish Nation's massive Senakw housing project, which broke ground in Vancouver in 2022, backed by a $1.4-billion federal loan for construction.

The nation issued a statement Thursday saying OPTrust, which manages one of Canada's largest pension funds, had bought out Westbank's stake, increasing OPTrust's ownership in the first two phases of the development to 50 per cent.

"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," the nation said in another update posted to its website.

It said the restructured partnership means Squamish Nation and OPTrust share equal ownership in phases 1 and 2 of the multi-building development in Vancouver's Kitsilano neighbourhood.

Westbank said in a statement that the 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," the developer said.

Westbank, founded by Ian Gillespie, is one of Vancouver's most prominent developers, behind such projects as Vancouver House and the five-million-square-foot Oakridge Park, scheduled for completion in 2027 in partnership with the QuadReal Property Group.

The nation did not say how much OPTrust paid for Westbank's stake.

​Through the reorganization, the nation said it had secured 100 per cent ownership in phases 3 and 4, calling the move "an unprecedented step toward self-sufficiency."

"It means the Squamish Nation will fully own those phases of the project and the land underneath it. We can now make all the decisions about the future of these phases. This is a big step toward our nation's long-term plan for financial independence," it said.

The nation is selecting a new development manager to oversee the completion of Phase 2 and start planning for phases 3 and 4, it said.

Peter Lindley, president of OPTrust, said in a statement the project is a "transformative development" that supports long-term retirement security of the trust's members while providing much-needed housing, including affordable units.

"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," he said.

The development is located on the site of an ancient Squamish village.

The land had been appropriated by the Canadian Pacific Railway a century ago and was returned to the nation in 2003 by the Federal Court of Canada.

Once complete, the Senakw development is slated to include 6,000 rental units, with half of those financed by Ottawa's loan.

Then-prime minister Justin Trudeau was at the site when the project broke ground, while former Vancouver mayor Kennedy Stewart touted the development as "the largest First Nations economic development in Canadian history."

All three towers in Phase 1 have reached their full heights of 27, 32 and 40 storeys, the nation said in its statement.

The buildings will open with more than 1,400 new homes next year, it said.

The nation said a referendum of its members was not necessary for the reorganization because it did not require a new lease of reserve land, and it was determined the move was "in the nation's best financial interests."

Financing for Phase 1 through the Canada Mortgage and Housing Corp. is complete and the process is underway for Phase 2, it noted.

The nation, through its development corporation, had made a short-term loan to the project partnership to keep construction going at its current pace.

"That loan, together with interest, has since been paid back to the nation through funds provided by OPTrust," an update posted to the nation's website said.

"The nation is not required to inject any funds into (phases 1 and 2) of the project."