Joint venture to develop residential community at Gloucester City Centre in Ottawa, Ontario

TORONTO, ONTARIO and HALIFAX, NOVA SCOTIA, 2017-Apr-26 — /EPR Retail News/ — RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) and Killam Apartment Real Estate Investment Trust (“Killam”) (TSX:KMP.UN) are pleased to announce the formation of a joint venture to develop a rental residential community at Gloucester City Centre in Ottawa, Ontario.

On April 21, 2017, Killam acquired a 50% interest in a discrete 7.1 acre development site located adjacent to RioCan’s Gloucester Silver City Shopping Centre, in the east end of Ottawa. The purchase price for Killam’s 50% interest is $8 million ($16 million at 100%). RioCan and Killam each own a 50% interest in the land and will participate on the same basis in the costs to develop the project. RioCan will act as the development manager, and upon completion, Killam will act as the residential property manager.

The site has zoning approval for a total of four residential towers containing up to an aggregate of 840 units. The first phase of the development will include a 217,000 square foot, 23-storey tower containing approximately 222 units. This leading edge development will maximize efficiency with the incorporation of a geothermal energy system for the building’s heating and cooling. Site work has commenced and occupancy is anticipated in mid-2019. Located adjacent to RioCan’s Silver City Gloucester retail centre and Ottawa’sLight Rail Transit (LRT) Blair Station on the Confederation Line East, the development is easily accessible to many retail, entertainment and transit options.

“We are very pleased to partner with Killam on our first rental residential development in Ottawa. Killam’s experience and management expertise in the rental residential segment will ensure the success of this development project,” said Edward Sonshine, Chief Executive Officer of RioCan. “This rental residential development along the expanding Confederation LRT line is a prime example of the opportunities that RioCan has to extract additional value and cultivate new sources of cash flow from our portfolio of transit oriented urban locations.”

“This joint venture is an exciting opportunity for Killam,” noted Philip Fraser, Killam’s President and Chief Executive Officer. “It aligns with Killam’s growth strategy of developing high-quality properties and diversifying geographically, with an emphasis on next generation operating systems and building features. Partnering with RioCan provides Killam the opportunity to participate in a four-phase apartment complex located next to both modern transit and amenities, and to grow our Ontario portfolio.”

“Despite recently announced expanded rent control guidelines in Ontario to include apartments built after 1991, new apartment development continues to be a sound strategy,” continued Mr. Fraser. “The all-cash yield on this project is expected to be well above the return achievable in today’s acquisition market. This is expected to translate into net asset value creation for Killam’s unitholders upon completion of the project. In addition, with an expected net operating margin of approximately 70%, compared to 55% to 60% for many older assets, the property’s exposure to increased operating costs is limited, and its long-term net operating income growth potential is enhanced. Finally, with no deferred capital, the net cash flow from the project is expected to be stable and predictable.”

About RioCan

RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $14.6 billion as at December 31, 2016. 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 47 million square feet. For further information, please refer to RioCan’s website at www.riocan.com.

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities. Killam’s current portfolio includes $2.0 billion in real estate assets. Killam’s strategy to maximize its value and long-term profitability includes concentrating on three key areas of growth: 1) increasing the earnings from its existing portfolio, 2) expanding its portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

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 made with respect to RioCan’s and Killam’s development program, their joint venture, the ability of the joint venture to complete the development project, and other statements concerning RioCan’s and Killam’s objectives, their strategies to achieve those objectives, as well as statements with respect to their respective 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 information 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 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 or Killam’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described under “Risks and Uncertainties” in both RioCan’s and Killam’s Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2016, and their most recent Annual Information Forms, 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 in the global marketplace associated with current economic conditions; tenant concentrations and related risk of bankruptcy or restructuring (and the terms of any bankruptcy or restructuring proceeding), defaults, including the failure to fulfill contractual obligations by the tenant or a related party thereof; retailer competition; access to debt and equity capital; interest rates and financing risk; joint ventures and partnerships; the relative illiquidity of real property; development risk associated with construction commitments, project costs and related approvals; environmental matters; occupancy levels; unexpected costs or liabilities related to acquisitions or dispositions; legal matters; reliance on key personnel; income taxes; the conditions to the transactions not being satisfied resulting in the failure to complete some or all of the proposed transactions described herein; lack of availability of acquisition or disposition opportunities for the Trust and exposure to economic, real estate and capital market conditions in North America. 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 REIT. RioCan and Killam both currently qualify as real estate investment trusts for Canadian tax purposes and intends 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, neither RioCan nor Killam undertake any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information:
RioCan REIT
Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer
(416) 866-3018

Killam Apartment REIT
Philip Fraser
President & CEO
(902) 453-4536
pfraser@killamreit.com

Source: RioCan

Metro Local Purchasing Program brings in 91 news products from 19 different suppliers from the Ottawa region

Toronto, ON, 2017-Mar-29 — /EPR Retail News/ — Metro today announces the arrival in store of 91 news products from 19 different suppliers from the Ottawa region, as a result of the pilot project currently underway in that region. The products will be from the deli, dairy, grocery, meat, frozen grocery, bakery and produce categories. Beginning in Mid-March, customers at 25 stores in the Ottawa market will be able to purchase unique products either made or developed in their area.

The success of the pilot project will be continuously monitored and evaluated in the coming months and will influence how the program grows and develops in other markets in Ontario. The ultimate goal will be to have the local purchasing program available across the province.

“The Ottawa pilot project will be the first proof-point in Metro’s commitment to provide easier access to our customers to more local products,” said Joe Fusco, Senior Vice President, Metro Ontario. “They will truly appreciate the wide range of unique regional items that we are now able to offer them.”

“We are delighted with Metro’s initiative to put forward products from the Ottawa region under this pilot project that further promotes local seasonal foods and works to help consumers recognize and ask for Ontario-grown foods at their local grocery store. We hope that these new agreements will benefit the people of Ottawa, suppliers, and in a more general way, the socio-economic development of the region,” said Denise Zaborowski, Manager, Foodland Ontario.

“enerjive is thrilled to be part of the Metro Local Purchasing Program in Ottawa! Being directly placed into 25 stores with eight different products will close to double the local distribution in Ottawa, making our crackers widely available across the region.” Said Korey Kealey, CEO of enerjive Inc., one of the first suppliers to participate. “It feels like a lucky break to be placed into a grouping of stores after organically growing our brand store by store for five years. We are so excited and welcome the opportunity to celebrate local goodness with other brands and Metro!

Said Pietro Comino, General Manager of Francesco’s Coffee, “Francesco’s Coffee is independently owned and operated by your friends and neighbours in Ottawa, Ontario”. Metro’s local sourcing program has made our local products available to a much wider market and has allowed us to create two new full-time positions and grow our operation significantly.”

Local Purchasing Program
On June 10th, 2016, Metro launched its local purchasing program in Ontario, which aims to optimize the accessibility and promotion of local products. The program, which is part of Metro’s overall corporate responsibility approach, is based on three guiding principles and aims to make Metro a unique showcase for regional products; A key partner of Foodland Ontario and sectoral agri-food associations that promote Ontario products; a key ally of to Ontario innovative suppliers. The local purchasing policy can be consulted on metro.ca. The Metro 2016 Corporate Responsibility Report is also available online at metro.ca/responsibility

About Metro inc.
With annual sales of over $12 billion and over 65,000 employees, METRO INC. is a leader in the food and pharmaceutical distribution in Québec and Ontario, where it operates a network of more than 600 food stores under several banners including Metro, Food Basics, Metro Plus and Super C, as well as over 250 drugstores under the Brunet, Metro Pharmacy and Drug Basics banners.

 

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SOURCE: Metro

Contact Information:

Mark Bernhardt
Communications Specialist
mark.bernhardt@metro.ca
(416) 234-6155