TORONTO - Two real estate trusts say they're proceeding with plans to develop a site in downtown Toronto with Shopify Inc. as its main tenant.

The announcement comes nearly a year after Shopify's initial public offering on the Toronto and New York stock exchanges, which raised $131 million.

The electronic commerce company (TSX:SH, NYSE:SHOP) has committed to lease about 112,000 square feet or 44 per cent of the space at what will be known as the King-Portland Centre.

The site will be located at 602-620 King Street W., about two kilometres west of Toronto's main financial district.

The property redevelopment is being done by Allied Properties (TSX:AP.UN) and RioCan (TSX:REI.UN), two Toronto-based real estate trusts.

Allied will manage the office component and RioCan will manage the retail and residential components once the project is completed in about three years.