TORONTO, ONTARIO–(Marketwired – May 23, 2017) – RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) and Concert Real Estate Corporation (“Concert”) are pleased to announce the signing of a firm agreement on May 17, 2017, with RioCan selling a 50% interest in Sunnybrook Plaza at a sale price of $26.3 million ($52.5 million at 100%) to Concert. RioCan will continue to act as the interim property manager until redevelopment commences, and will act as the retail property manager on completion. Concert will act as both development manager and property manager for the residential portion of the property. The partners will share in the development costs on a 50/50 basis with the transaction set to close in June 2017.
RioCan has received approval for its development proposal at its Sunnybrook Plaza, a transit-oriented development located on the northeast corner of Bayview and Eglinton Avenue. The development will be adjacent to a station on the Eglinton Crosstown LRT project that is currently under construction by Metrolinx, in one of Toronto’s highest demand residential neighbourhoods. The 16 and 11-storey mixed use residential project is close to a total of 375,000 square feet which includes 43,000 square feet of retail space. Currently, RioCan and Concert are contemplating that the residential component will be developed as rental suites.
“Over the past 24 years we have amassed a strong portfolio of retail assets in Canada’s six major markets. Some of these properties now provide the opportunity to be redeveloped and intensified to make better use of the lands and improve the quality of our portfolio and the net asset value for our unitholders. During the planning stages of this process we are significantly enhancing the value of our properties, while continuing to generate revenue from these properties. When complete, we will have one of, if not, the best portfolio of newly developed urban transit-oriented mixed use properties that will be the foundation for the next twenty years of growth at RioCan,” said Mr. Sonshine Chief Executive Officer of RioCan. “Our agreement with Concert brings to the table a terrific partner with nearly thirty years of experience developing apartments, condominiums, and other commercial properties with an excellent property management platform that will ensure the success of this exciting mid-town Toronto development.”
“Established in 1989 with the mandate to provide assured rental housing in British Columbia, Concert has been developing purpose-built rental and delivering high-quality property management service to our tenants for over 27 years,” said Brian McCauley, Concert President and Chief Operating Officer. “Building on a solid track record of creating award-winning master-plan communities that leverage our experience, the Sunnybrook redevelopment represents an opportunity to integrate our multi-faceted expertise into an asset that will generate attractive, long-term returns for the pension funds who own Concert. We’re excited about the opportunity to develop this transit-oriented property in partnership with best-in-class retail landlord RioCan, the largest REIT in the country, and are well-aligned as long-term owners.”
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 and intensification of Sunnybrook Plaza 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.
Founded in 1989, Concert specializes in developing rental apartments, condominium homes and retirement communities, acquiring and developing office, industrial and infrastructure properties and in property management. With operations across Canada and the backing of more than 200,000 Canadians represented by the union and management pension plans who own Concert, our commitment is to build strong, sustainable communities across Canada. For more information, visit www.ConcertProperties.com.
Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer
Concert Real Estate Corporation
President and Chief Operating Officer