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Former EOP/Trizec Chief Joins With Canada-Based Ivanhoé Cambridge to Build U.S. Office Portfolio

Tim Callahan of Callahan Capital Partners Has A Long History of Working With Blue-Chip U.S. Office Properties
December 11, 2012
Montreal-based Ivanhoé Cambridge, which worked with Callahan Capital Partners [CCP] to buy the 40-story 1411 Broadway office tower in New York City for $360 million, has now joined forces with the real estate firm and its President and CEO Tim Callahan to develop Ivanhoé Cambridge's U.S. office real estate platform and manage its growing U.S. portfolio.

Tim Callahan has plenty of solid experience working with large office portfolios - he has worked with some of the world's largest. Before forming Callahan Capital, he served as president, CEO and director of Trizec Properties, Inc. a national office REIT with 40 million square feet from August 2002 until it was acquired by Brookfield Properties and Blackstone in October 2006.

Prior to that, Callahan served as trustee, president and CEO of Equity Office Properties Trust from October 1996 through April 2002.

It's not the first time Callahan has worked with Ivanhoé Cambridge, a subsidiary of one of Canada's largest pension managers, Caisse de dépôt et placement du Québec.

Last month, Ivanhoé announced an investment of more than $360 million in 1411 Broadway, an office building in Manhattan, in a joint venture with The Swig Company to buy out Blackstone's interest in the tower. The Ivanhoé/Swig joint venture engaged Callahan Capital to act as asset manager in that deal.

The acquisition brought to three the number of Manhattan office properties in which Ivanhoé now owns interests, and there's more to come. The Canadian company is targeting U.S. office properties in New York, Washington, D.C., Boston, Chicago, San Francisco, Seattle and Los Angeles. It's also a player in Canada and Europe, owning business units in Montreal, Toronto, Calgary, Vancouver, Paris and London.

The strategic relationship with Callahan Capital allows Ivanhoé Cambridge to immediately access a fully operational stand-alone platform that will benefit from numerous synergies, including access to a pipeline of investment opportunities, an extensive national network of contacts and local market knowledge; and proven and efficient, market-specific asset management expertise. Callahan also bring major capabilities in executing large, complex transactions.

"This is a great opportunity for Ivanhoé Cambridge to capitalize on [Callahan Capital's] recognized expertise in the acquisition and management of office assets in the U.S., a priority market where we are seeking to develop a solid platform," said Daniel Fournier, Chairman and CEO of Ivanhoé Cambridge.

"The U.S. office market is very large and also very competitive. Our strategic relationship with CCP will enable us to significantly accelerate the development of our platform by quickly accessing investment opportunities and by benefiting from CCP’s deal-sourcing and execution capabilities. We are happy to be able to work with one of the leading real estate teams in the U.S. to maximize our execution capacity and efficiency in this market," Fournier said.

Callahan Capital's management team is composed of seasoned professionals with valuable experience obtained with blue-chip real estate companies and a proven track record of managing large real estate firms.

"As of one of the world’s top institutional real estate investors with a proven expertise, Ivanhoé Cambridge is an ideal partner for us. Ivanhoé Cambridge is a well-established, long-term investor with a solid international base that is looking to leverage its strong position and expertise and that is intent on growing its U.S. presence in the office sector," said Tim Callahan. "Furthermore, through our new relationship, our respective interests are perfectly aligned."

All investments proposed will be subject to Ivanhoé Cambridge’s investment approval process, according to the agreement. A new property acquired in Manhattan in mid-November, 1411 Broadway, will be the first investment to be managed by Callahan Capital Partners.

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