TORONTO, ONTARIO–(Marketwired – May 25, 2017) – RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) is pleased to announce that is has commenced development at Windfields Farm in Oshawa, Ontario with its partner Tribute Communities (“Tribute”).
In 2015, RioCan announced that it had formed a joint venture with Tribute to develop a residential project on a 30 acre parcel of land at RioCan’s Windfields Farm property. The overall Windfields Farm site contains approximately 116 acres of developable land in the Greater Toronto Area suburb of Oshawa, Ontario. The site is located adjacent to the recently expanded Highway 407, near the University Of Ontario Institute Of Technology, and Durham College. The current plans include as much as 50 acres of residential development and 66 acres of commercial development.
Servicing of the subdivision has begun and registration is expected to be received in the second quarter of 2017, with delivery of approximately 551 townhomes to commence in 2018 in three phases. Occupancy of the first phase of 169 townhomes, of which 166 are sold, is expected to begin during the fourth quarter of 2018. Purchasers in the second phase of 119 townhomes are expected to take occupancy during the second quarter of 2019, and purchasers of the third phase of 261 townhomes taking occupancy in the fourth quarter of 2019. There is also zoning in place for two twelve storey residential buildings that are included in the joint venture to which RioCan and Tribute are considering alternative scenarios. Tribute is providing marketing, development and construction services on behalf of the joint venture for the residential development of the site.
There are further opportunities on 20 acres of land on the site on which the partners are currently contemplating additional residential development. RioCan intends to develop a portion of the site to include a retail component that will service the residential lands and surrounding community with development anticipated to commence in 2018.
“This is a prime example of the multitude of opportunities within our portfolio that allow us to create substantial value and generate real and reliable cash flow for our unitholders. The pipeline of intensification projects underway, approved, in the approval process, as well as potential intensification projects provides us with the ability to grow the value and the cash flow of RioCan over the next ten years. We have the entrepreneurial spirit to seize these opportunities and the resources to ensure successful execution,” added Mr. Sonshine. “Sites, such as Windfields Farm, represent considerable land area that enable RioCan to build and shape communities and add to the urban landscape of Canada’s largest cities. Projects like Sunnybrook Plaza, and others in our pipeline are transit oriented developments that address the needs of municipalities for increased density and enhanced community development near transit infrastructure projects. These are significant investments for RioCan, and we remain a part of these communities, so as community stewards we have a responsibility to do it right.”
In total, RioCan has currently identified nearly 50 properties that it considers to be strong possible intensification opportunities, all of which are in the six major markets and are typically located in the vicinity of substantial transit infrastructure. These locations will provide a deep pipeline of development opportunities for RioCan as it redevelops and intensifies these properties to enhance future cash flow growth and diversify the Trust’s sources of rental revenue. Our development plans will be implemented in a prudent manner so as to manage the balance sheet and the cash flows of the Trust in order to maintain our growth targets for the business. Furthermore, as Canada’s major markets continue to grow and improve transit infrastructure, additional opportunities will present themselves.
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 related to the Trust’s development project at Windfields Farm, the timing of residential completions, and comments related to the timing of other commercial development on the site, together with 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 “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. All forward-looking statements in this News Release are 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 March 31, 2017 (“MD&A”) and the Trust’s most recent Annual Report and Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release.
Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $14.6 billion as at March 31, 2017. RioCan owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 300 Canadian retail and mixed use properties, including 15 properties under development, containing an aggregate net leasable area of 46 million square feet. For the past 25 years, we have shaped the future, sensibly cultivated growth, and taken our stakeholders and partners wherever they needed to go. Currently, we have more than 6,200 tenants and 700 employees with a presence from coast to coast. We know that there is a home for every retailer. Whether we find it today or build it for tomorrow, we deliver real vision, solid ground. For more information, visit www.riocan.com.
Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer