TORONTO, Oct. 26, 2017 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) has been the owner of Centre RioCan Kirkland (situated in the West Island of Montreal) since the site was developed in 1999. It currently consists of 39 acres of land occupied by a new format retail centre of approximately 320,000 square feet that was at the end of the previous quarter, 80 % occupied.
RioCan has now received a notice of expropriation from the Ministry of Transportation of Quebec related to roughly 7 acres of the site in order to accommodate a major station and parking facilities as part of Montreal’s Reseau Electrique Metropolitain (“REM”). Upon estimated completion in 2020, REM will provide easy and fast access to Montreal’s downtown core, Montreal’s North and South Shores, West Island and Trudeau Airport. With the simultaneous road improvements to be undertaken by the City of Kirkland, the remaining 32 acre parcel will present significant opportunities for redevelopment and intensification.
In order to ensure that the property is redeveloped to its highest and best uses, RioCan has entered into an agreement with Broccolini Real Estate Group Inc. (“Broccolini”), a noted Montreal based developer, to form a Joint Venture for the purpose of redeveloping the property over time to become a mixed-use residential, retail and office complex as part of our focus to optimize the value of our existing properties to deliver value to our unitholders and tenants, and meet the evolving needs of the communities we serve. As part of this agreement, Broccolini will purchase a 50% interest in the remainder of the Centre RioCan Kirkland lands and will act as the development manager.
While plans for the new development are still in the process of discussion between RioCan, Broccolini and the City of Kirkland, it is expected that the eventual development will contain many times the existing density on the site.
“This is a prime example of how our locations in Canada’s major markets are becoming increasingly in demand as municipalities add new transit infrastructure. Centre RioCan Kirkland is yet another one of these properties in major market locations that are becoming sites for, or located near major transit hubs,” said Edward Sonshine CEO of RioCan.
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion as at June 30, 2017. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. Our portfolio is comprised of 299 properties, including 15 development properties, with an aggregate net leasable area of approximately 45 million square feet. To learn more about how we deliver real vision on solid ground, visit www.riocan.com.
Broccolini is a leading single-source provider of construction, development and real-estate services, catering to the industrial, commercial, institutional and residential markets in Canada. Our organization provides a range of services, acting variously as a general contractor, construction manager, project manager, property manager and developer. Broccolini is a 3rd generation family owned business founded in 1949 with offices in Montreal, Ottawa and Toronto.
FORWARD LOOKING INFORMATION
This news release contains forward-looking information within the meaning of applicable Canadian securities laws. This information includes, but is not limited to, statements concerning future development potential at Centre RioCan Kirkland, as well as statements with respect to management’s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements.
Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, as described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended June 30, 2017 (“MD&A”) and the Trust’s most recent Annual Information Form, and including that the transactions contemplated herein are completed, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. 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.
Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
RioCan Real Estate Investment Trust
Senior Vice President and Chief Financial Officer