TORONTO, Dec. 18, 2017 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX:REI.UN) today announced that it has sold a 50% interest in its 740 Dupont Avenue mixed-use development project in Toronto, Ontario to Woodbourne Canada Partners (“Woodbourne”) at a sale price of $8.8 million. RioCan will act as development manager for the project. On completion, Rhapsody Property Management Services, on behalf of the co-owners, will provide property management services for the residential component, and RioCan will provide property management services for the retail component.
The transaction is the second between RioCan and Woodbourne, which is also a co-owner in the 584 unit rental residential component of the mixed-use project currently referred to as Building Six at The Well. The Well is a landmark joint venture mixed–use development with RioCan, Allied Properties REIT, Woodbourne and Tridel Builders Inc. in Toronto’s downtown west submarket.
740 Dupont Avenue is a mixed-use retail residential development project with a net leasable area (“NLA”) of approximately 181,000 square feet. The residential component of the project is expected to contain 210 rental apartment units and approximately 31,000 square feet of retail NLA. Demolition at the site has begun, and the project is expected to be substantially completed in the third quarter of 2020.
In addition, RioCan has secured Farm Boy as the lead tenant for the retail component of the Dupont project. Farm Boy has committed to lease approximately 25,000 square feet of retail space on the ground floor of the project. Farm Boy is an independently owned specialty grocer, with 24 locations and over 35 years of experience focusing on locally sourced produce, responsibly sourced meat and seafood, together with a strong line of private label products and prepared foods.
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion at September 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 294 properties, including 16 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.
About Woodbourne Canada Partners
Woodbourne is a leading developer and operator of, and investor in, high-quality apartments, senior housing communities and other multi-residential real estate assets in prime urban areas across Canada. Woodbourne invests on behalf of a broad, stable base of institutional investors, including public and private pension funds, endowments, foundations, and funds of funds. Woodbourne currently has 60 residential projects operating, under development or in lease-up and is invested in approximately 12,000 residential units in Canada.
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 RioCan’s joint venture projects, development project timelines, 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, including those described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended September 30, 2017 (“MD&A”), which could cause actual events or results to differ materially from the forward-looking information 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 and related risk of bankruptcy or restructuring (and the terms of any bankruptcy or restructuring proceeding), occupancy levels and defaults, including the failure to fulfill contractual obligations by the tenant or a related party thereof; lease renewals and rental increases; the ability to re-lease and find new tenants for vacant space; retailer competition; changes in Ontario’s rent control legislation; access to debt and equity capital; interest rate and financing risk; joint ventures and partnerships; the relative illiquidity of real property, the timing and the ability of RioCan to sell certain properties; and the valuations to be realized on property sales relative to current IFRS values; unexpected costs or liabilities related to acquisitions and dispositions; development risk associated with construction commitments, project costs and related approvals; environmental matters; litigation; reliance on key personnel; unitholder liability; income, sales and land transfer taxes; and credit ratings.
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