In 2013, we partnered, as equals, with two arm’s-length parties in a residential, retail and commercial real estate redevelopment project, TELUS Sky, in Calgary, Alberta. The new-build tower, completed in 2020, was to be built to the LEED Platinum standard.

We have acquired a 35% (2020 - 28%) basic equity interest in Miovision Technologies Incorporated, an associate that is complementary to, and is viewed to grow, our existing Internet of Things business; our judgment is that we obtained significant influence over the associate concurrent with acquiring our equity interest.

Our real estate joint ventures activity

Our real estate joint ventures investment activity is set out in the following table.


Years ended December 31 (millions)	2021						2020
	Loans and						Loans and
	receivables ¹		Equity ²		Total		receivables ¹		Equity ²		Total
Related to real estate joint ventures’ statements of income and other comprehensive income
Comprehensive income (loss) attributable to us ³	$	—	$	(3)	$	(3)	$	—	$	(14)	$	(14)
Related to real estate joint ventures’ statements of financial position
Items not affecting currently reported cash flows
Construction credit facilities financing costs charged by us (Note 7)		4		—		4		4		—		4
Cash flows in the current reporting period
Construction credit facilities
Amounts advanced		—		—		—		10		—		10
Financing costs paid to us		(4)		—		(4)		(4)		—		(4)
Funds we advanced or contributed, excluding construction credit facilities		—		10		10		—		17		17
Funds repaid to us and earnings distributed		—		—		—		—		(1)		(1)
Net increase (decrease)		—		7		7		10		2		12
Real estate joint ventures carrying amounts
Balance, beginning of period		114		(11)		103		104		(2)		102
Valuation provision		—		(4)		(4)		—		(11)		(11)
Balance, end of period	$	114	$	(8)	$	106	$	114	$	(11)	$	103

1	Loans and receivables are included in our consolidated statements of financial position as Real estate joint venture advances and are comprised of advances under construction credit facilities.

We account for our interests in the real estate joint ventures using the equity method of accounting. As at December 31, 2021 and 2020, we had recorded equity losses in excess of our recorded equity investment in respect of one of the real estate joint ventures; such resulting balance has been included in long-term liabilities (Note 27).

3	As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income.

We have entered into lease agreements with the TELUS Sky real estate joint venture; for lease accounting purposes, the first lease commenced during the three-month period ended June 30, 2019. During the year ended December 31, 2021, the TELUS Sky real estate joint venture recognized $8 million (2020 – $NIL) of revenue from our office tenancy; of this amount, one-third was due to our economic interest in the real estate joint venture and two-thirds was due to our partners’ economic interests in the real estate joint venture.

Construction credit facilities

The TELUS Sky real estate joint venture has a credit agreement, maturing August 31, 2023, with Canadian financial institutions (as 66-2/3% lender) and TELUS Corporation (as 33-1/3% lender) to provide $342 million of construction financing for the project. The construction credit facilities contain customary real estate construction financing representations, warranties and covenants and are secured by demand debentures constituting first fixed and floating charge mortgages over the underlying real estate assets. The construction credit facilities are available by way of bankers’ acceptance or prime loan and bear interest at rates in line with similar construction financing facilities.