TORONTO, Canada, 2017-Nov-30 — /EPR Retail News/ — RioCan Real Estate Investment Trust(“RioCan” or the “Trust”) (TSX:REI.UN) today announced that it has entered into an agreement with CT Real Estate Investment Trust (“CT REIT”) for the sale of seven retail properties, all of which are anchored by a Canadian Tire banner, for a total sale price of $200 million. The annualized income based on the first nine months of 2017 for the portfolio is approximately $12 million.
The sale is the first transaction to be completed as part of RioCan’s previously announced plan to accelerate its portfolio focus in Canada’s six major markets through the sale of approximately 100 properties located largely in secondary markets across Canada.
Edward Sonshine Chief Executive Officer of RioCan, said, “We are very pleased to report good progress on the execution of our accelerated strategy in such a short time. This transaction reinforces the quality and anticipated value of the properties allocated for sale, which are largely highly stable assets that appeal to a wide range of buyers. We have been very pleased with the initial response to the announcement, and we are in various stages of negotiations on several transactions representing properties that we expect to be able to provide more details on in the first quarter of 2018. Overall, we are very confident in our ability to complete our disposition program and execute our strategic vision within our initial timelines provided.”
The sales are subject to normal closing conditions with the majority expected to close in December 2017, and the remainder to close in the first quarter of 2018. The net proceeds will be used to pay down debt, fund unit repurchases through RioCan’s Normal Course Issuer Bid program and fund the Trust’s development activities. Since the renewal of the program on October 20, 2017, RioCan has purchased 2,526,687 units at an average purchase price of $25.54.
The properties included in the agreement are:
|Property Name||Location||Net Leasable Area (sf.)|
|Collingwood Centre||Collingwood, ON||210,000|
|Goodlife Centre||St. Catharines, ON||144,000|
|Orillia Square Mall||Orillia, ON||318,000|
|Parkland Mall||Yorkton, SK||264,000|
|Southwinds Crossing||Oliver, BC||73,000|
|Sudbury Place||Sudbury, ON||148,000|
|Upper James Plaza||Hamilton, ON||126,000|
As previously disclosed, RioCan’s accelerated strategy is intended to further enhance the quality, growth profile and resilience of the Trust’s portfolio of retail focused, increasingly mixed-use properties located in prime, high density, transit oriented areas where Canadians want to shop, live and work.
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.
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 disposition strategy, 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.
Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer
(416) 866-3018 | firstname.lastname@example.org
Source: RioCan Real Estate Investment Trust/ GLOBE NEWSWIRE