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“I have to recognize the confidential nature of the purchase contract and that we’re still in the midst of negotiations on this transaction,” Kaplun said. “Other than the sale of Lots 6 and 7, GNW Trust has used a competitive process where lots have been sold to the private sector.”

The two lots are offered on an 18.6-acre former industrial site that was given to the four B.C. universities in 2001. GNW Trust is seeking to develop a mixed-use, live, work and retail village centred on Emily Carr University, and a proposed new SkyTrain station to be built as part of the proposed Broadway extension. The area is considered by industry experts as the final frontier of high-density real estate development in Vancouver, and primed to boom.

Of the two lots offered, the largest, Lot 7, would have the new SkyTrain line running right through it. Lot 7 was offered for $1 in the deal — apparently because of restrictions due to the expected SkyTrain — according to information reviewed by Postmedia. As of a year ago, May 2016, the appraised value of Lot 6 was $12.3 million. PCI and Low Tide offered $24 million for Lots 6 and 7, and would spend up to $5 million to build a daycare centre on the site. This would fulfil a City of Vancouver development obligation for GNW, giving GNW final proceeds of about $19 million from the proposed sale.

In an interview on Tuesday, Kaplun said that GNW judged that an untendered sale process was warranted for Lots 6 and 7, because of the complexity of developing the site. PCI had already bought adjacent Lots 9 and 8 in an open bid process, Kaplun said. PCI’s plans on Lot 8 are expected to seek additional density that will warrant the building of the daycare, according to deal information. As PCI’s plans on Lot 8 became clear, Kaplan said, and PCI came forward with an unsolicited offer for Lots 6 and 7, GNW judged that having PCI and Low Tide develop all of these lots in an integrated way, made most sense.