CALGARY, Alberta-The worldwide credit markets shutdown has made itself felt here lately as H&R REIT said in its recent conference call that it has no financing in place for its two-million-square-foot Bow office complex and its 325,000-square-foot Bell project in Mississauga, Ontario. Company officials said that the REIT is weighing a number of alternatives for funding the estimated $1.1 billion in construction costs, including selling interests in the two new developments.

The Bow, so named for the Bow River that runs through Calgary, is slated to be the new headquarters of EnCana Corp., a natural gas producer that is also involved in the extraction of oil from Canada’s huge tar sands reserves and is one of Canada’s largest publicly held companies. The Bell project would be phase three of a complex that already includes nearly 775,000 square feet of office space leased to units of Bell Canada.

The 58-story Bow will be the largest single-tenant office complex in Western Canada and will become upon completion the premier trophy property in H&R REIT’s 41-million-square-foot portfolio, H&R execs said in announcing the project in 2007. The quoted rate at the time of the deal—which is a 25-year triple-net lease—wasapproximately $36.37 per square foot with annual rental increases of 1.5%.

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