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
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.