|By Marketwired .||
|March 31, 2014 09:16 AM EDT||
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 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.
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, 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.
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.
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.
RioCan Real Estate Investment Trust
Executive Vice President & CFO
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Dec. 9, 2016 03:00 AM EST Reads: 369
Dec. 9, 2016 02:15 AM EST Reads: 6,225
Dec. 9, 2016 02:00 AM EST Reads: 3,025
Dec. 9, 2016 01:45 AM EST Reads: 983
Dec. 9, 2016 01:45 AM EST Reads: 1,953
Dec. 9, 2016 01:15 AM EST Reads: 3,976
Dec. 9, 2016 01:15 AM EST Reads: 1,659
Dec. 9, 2016 12:45 AM EST Reads: 1,208
Dec. 9, 2016 12:45 AM EST Reads: 5,116
Dec. 9, 2016 12:30 AM EST Reads: 885
Dec. 9, 2016 12:00 AM EST Reads: 711
Dec. 9, 2016 12:00 AM EST Reads: 1,176
Dec. 8, 2016 09:45 PM EST Reads: 1,243
Dec. 8, 2016 09:15 PM EST Reads: 1,672
Dec. 8, 2016 09:15 PM EST Reads: 970