07/04/2013 12:52 EDT | Updated 09/03/2013 05:12 EDT

Telus, Allied Properties REIT and Westbank to build new tower in Calgary

CALGARY - Telus (TSX:T), Allied Properties REIT (TSX:AP.UN) and real estate developer Westbank announced plans Thursday for a new, $400-million building in Calgary that will include office, retail and residential space.

The 750,000-square-foot mixed-use tower will have 430,000 square feet of office space, of which 155,000 square feet will be for Telus.

The project will also include 15,000 square feet of retail space, 341 residential rental units and 285 underground parking spaces.

Telus, Allied and Westbank and will each hold a one-third interest in the joint venture that will build the project.

Under the deal, Allied will contribute its property at 100 - 7th Ave. SW to the joint venture and Telus will contribute its adjacent property at 114 - 7th Ave. SW.

Westbank will act as development manager and Bjarke Ingels Group and Dialog have been hired as architects.

The joint venture expects to start construction in July 2014 and complete the development in 2017.