Click here to close now.




















Welcome!

News Feed Item

RioCan Real Estate Investment Trust Acquires Its Partner's Interest in Three Development Projects to Expand Its Development Portfolio

TORONTO, ONTARIO -- (Marketwired) -- 03/31/14 -- RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today is pleased to announce that it has acquired its partner's, Trinity Developments Limited ("Trinity"), interest in three development assets. RioCan acquired Trinity's interest in East Hills and McCall Landing, both in Calgary, Alberta as well as The Stockyards located in Toronto, Ontario. As part of the acquisition, RioCan will assume the role of development manager and will assume leasing responsibilities for these projects. Additionally, RioCan acquired Trinity's interest in Whiteshield Plaza a 156,000 square foot grocery anchored centre in Toronto, Ontario. The total consideration for Trinity's interest in the three development properties was $105 million and the purchase price of their interest in Whiteshield Plaza was $11 million.

"Trinity has been an influential partner and major contributor in the growth of RioCan over the past twenty years, and we look forward to continuing to work with John Ruddy and his team on many future development projects. By assuming the role of development manager for these projects, we can further leverage our in house development expertise and generate greater returns for the Trust and its partners," said Edward Sonshine, Chief Executive Officer of RioCan. "The staggered nature of these developments is attractive. The Stockyards is nearing completion and the income from this property is beginning to come on stream, as Canada's first purpose built Target store opened this month. The first phase of East Hills is expected to become income producing with the opening of Walmart in the second quarter of 2014. The third development site, McCall Landing, will provide longer term returns to our unitholders."

RioCan acquired Trinity's 10% interest in East Hills, 25% interest in McCall Landing and 25% interest in The Stockyards for an aggregate consideration of $105 million. RioCan assumed Trinity's share of the in place third party financing of $24 million outstanding on The Stockyards. East Hills and McCall Landing were acquired free and clear of financing. The cash received by Trinity was applied to repay the outstanding mezzanine financing on the projects in full.

RioCan has received approval from the remaining partners involved in these development projects to assume the role as development manager, and RioCan's development team will oversee the completion of these properties. RioCan will also assume responsibility for all leasing activities with respect to the properties. Upon completion, RioCan will provide asset and property management functions on behalf of its partners as previously agreed upon.

The acquisition of an additional interest in these development projects will further increase RioCan's portfolio concentration in Canada's six major markets, a long stated objective of the Trust. In the case of The Stockyards, RioCan has acquired an increased interest in a dynamic, urban, Target anchored shopping centre in a densely populated and established community in Toronto.

The development projects acquired are:

The Stockyards

Toronto, Ontario

The Stockyards development benefits from a well-established urban node at the intersection of St. Clair Avenue and Weston Road. The 19 acre site features approximately 551,000 square feet of space anchored by a 149,000 square foot Target. The project concept features a unique, urban, two-storey retail prototype and is the first purpose built Target store in Canada. In addition, Marshalls, HomeSense, Michaels, Old Navy, Sport Chek and PetSmart will operate at the site. A 50% interest in this property was sold to CPPIB in June 2008. As a result of the transaction the remaining 50% is owned by RioCan. Target is now open and the majority of the remainder of the tenants at the site will open by mid-2014.

East Hills

Calgary, Alberta

This 145 acre site is currently being developed into a 1.1 million square foot regional new format retail centre. The East Hills development is planned in three phases. Phases I and III comprise approximately 111 acres. Phases I, II and III will ultimately form an integrated site. The site will be anchored by a 134,000 square foot Walmart that is scheduled to open in the second quarter of 2014. The site is now co-owned by RioCan (40%), CPPIB (37.5%), Lansdowne (12.5%), and Tristar (10.0%).

McCall Landing

Calgary, Alberta

McCall Landing, located at 36th Street NE and Country Hills Boulevard NE in Calgary, is a 109-acre development that will consist predominately of new format retail. Upon completion, the development is expected to feature approximately 862,000 square feet of retail space. A 50% interest in this property was sold to the CPPIB in June 2008, with the remaining 50% owned by RioCan.

RioCan also completed the acquisition of the remaining 40% interest in Whiteshield Plaza, bringing RioCan's interest in the property to 100%. Whiteshield Plaza is a 156,000 square foot grocery anchored shopping centre located in Toronto, Ontario. The additional 40% interest was acquired at a purchase price of $11 million, representing a capitalization rate of 5.5%. In connection with the acquisition, RioCan assumed outstanding mortgage financing of $8 million, bearing interest at Banker's Acceptance plus 1.85%, maturing in September 2015.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13.8 billion as at December 31, 2013. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 340 retail properties containing approximately 82 million square feet, including 47 grocery anchored and new format retail centres containing 13 million square feet in the United States as at December 31, 2013. RioCan's portfolio also includes 16 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.

Forward-Looking Advisory

This News Release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release concerning RioCan's, intention to complete the development of certain assets, as well as other statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "objective", "may", "will", "expect", "intend", "should", "continue", or similar expressions suggesting future outcomes or events.

These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan's current estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in RioCan's Management's Discussion and Analysis for the year ended December 31, 2013 and in RioCan's annual information form dated March 28, 2013, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity and general market conditions, tenant concentrations, occupancy levels and defaults, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, United States of America ("US") investment and currency risk, and RioCan's qualification as a real estate investment trust for tax purposes. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.

The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the "SIFT Provisions"). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust ("REIT"). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.

Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts:
RioCan Real Estate Investment Trust
Rags Davloor
Executive Vice President & CFO
(416) 642-3554
www.riocan.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...