RioCan REIT and Allied Properties REIT: residential condominium units at King Portland Centre are substantially sold out

TORONTO, Canada, 2017-Oct-23 — /EPR Retail News/ — RioCan REIT (TSX:REI.UN) and Allied Properties REIT (TSX:AP.UN) today announced that the residential condominium units at King Portland Centre are substantially sold out, subject to customary closing conditions and rights of rescission. RioCan and Allied expect the profitability of these units to exceed initial expectations.

King Portland Centre is located at the northwest corner of King Street West and Portland Avenue in the heart of Toronto’s King West neighbourhood. In addition to the strength of its location, the development is unique, in that it will incorporate a restored heritage structure, 602-604 King West, with a substantial new mixed-use structure. The combined structures (at 100%) will be comprised of the following:

i. approximately 59,000 square feet of office and retail GLA in the heritage structure, which is fully occupied;

ii. approximately 256,000 square feet of additional office GLA in the new structure, which is 93% pre-leased to Shopify and Indigo and under construction;

iii. approximately 13,000 square feet of incremental retail GLA in the new structure with frontage on King West; and

iv. approximately 133 residential condominium units in the new structure with frontage on Adelaide West.

Having obtained registration with Tarion Warranty Corporation, RioCan and Allied offered the condominium units for sale on October 14, 2017. They expect purchasers to take possession in early 2019.

“The strong response to the sales launch of Kingly this past weekend affirmed the decision by RioCan and Allied to convert the project from rental to condominium. Our ability to effectively execute on the sale of the 133 condominium units in such a short time frame at favourable pricing illustrates the importance of good strategy, design and location. The higher than expected sales proceeds from Kingly have added to the economic success of King Portland Centre, and have proven the capabilities of the joint venture between RioCan and Allied,” said Edward Sonshine, CEO of RioCan.

Each of Allied and RioCan owns an undivided 50% interest in King Portland Centre, and on completion Allied will manage the commercial component. Completion of the development is scheduled for early 2019.

Cautionary Statements – Allied Properties REIT

This press release may contain forward-looking statements with respect to Allied, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” or the negative thereof or similar variations. The actual results and performance of Allied discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under “Risk Factors” in Allied’s Annual Information Form, which is available at www.sedar.com. These cautionary statements qualify all forward-looking statements attributable to Allied and persons acting on Allied’s behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the parties have no obligation to update such statements.

Cautionary Statements – RioCan REIT

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 the development at King Portland Centre, RioCan’s development program and 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 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, as described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended June 30, 2017 (“MD&A”) and the Trust’s most recent Annual Information Form, and including that the transactions contemplated herein are completed, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. 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.

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.

About Allied
Allied is a leading owner, manager and developer of distinctive urban workspace in Canada’s major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

About RioCan
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion as at June 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 299 properties, including 15 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.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer

Michael R. Emory
President & Chief Executive Officer

SOURCE: RIOCAN

RioCan REIT enters into agreement with Sears Canada for its locations at RioCan Oakville Place, Ontario and Garden City Shopping Centre in Manitoba

TORONTO, 2017-Oct-06 — /EPR Retail News/ — RioCan Real Estate Investment Trust(“RioCan”) (TSX:REI.UN) is pleased to announce that it has entered into agreements with Sears Canada Inc. (“Sears”), which received court approval on October 4, 2017. Sears is currently subject to restructuring proceedings under the Companies’ Creditors Arrangement Act (“CCAA”). RioCan and its co-owner Hudson Bay Company (“HBC”) have secured a surrender agreement with Sears for its location at RioCan Oakville Place, in Oakville, Ontario for a fee of $4 million (at 100%). In addition, at Garden City Shopping Centre in Winnipeg, Manitoba, RioCan and its co-owner Bayfield Realty Advisors (“Bayfield”) have entered into an agreement to purchase the freehold interest in the Sears location for a purchase price of $8 million (at 100%).

RioCan Oakville Place
RioCan and HBC have entered into an agreement with Sears to secure a lease surrender, for a fee of $4 million (at 100%). The property is co-owned through RioCan’s joint venture with HBC on a 50/50 basis. In the approximately 104,000 square feet formerly leased by Sears, RioCan has the option for a 40,000 square foot Saks Off Fifth, which it is considering among other alternatives. The partners are also in discussions with other national tenants to take the remainder of the space. The new leases when completed will provide significantly more rental income than what was generated previously through the lease arrangement with Sears. These new and exciting tenants will also serve to improve the appeal of RioCan Oakville Place and attract a wider range of shoppers.

Over the past three years, RioCan Oakville Place has undergone an extensive $40 million renovation that includes a modernization of the interior common areas and exterior improvements at the centre; renovation of the Hudson Bay store that anchors the site; replacement of the parking deck; and the introduction of fresh new retailers including Pusateri’s Fine Foods, Sephora, and Pandora.

RioCan’s Oakville Place is a two level regional mall containing approximately 470,000 square feet of gross leasable area situated on a 29 acre site, located adjacent to and directly off of Queen Elizabeth Way (“QEW”), the major highway running through Ontario’s “Golden Horseshoe”, in Oakville, Ontario. The mall is well connected to local transit infrastructure and within close proximity to the Oakville Go Train station. Oakville is a fast growingcommunity with a strong, diversified economic base, and possesses one of Canada’s highest income demographics with an average household income statistic that is well above the national average.

In connection with the lease surrender, the partners will now be free to pursue future intensification possibilities at the site as the agreement eliminates the development restrictions that were part of the Sears lease agreement. With few development locations available in Oakville, it represents a significant opportunity to create additional value on the site with the potential significant additional density.

Garden City Shopping Centre
RioCan and its co-owner Bayfield have entered into a firm agreement to acquire the freehold interest in the Sears location at Garden City Shopping Centre in Winnipeg, Manitoba at a purchase price of $8 million (at 100%). The partners own the site on a 30% RioCan 70% Bayfield basis. RioCan provides property and asset management services for the property.

Located in Winnipeg’s Garden City neighbourhood, the Garden City Shopping Centre is home to 85 retailers and includes major national tenants such as Canadian Tire, Winners, Dollarama, and Goodlife Fitness. The centre is currently undergoing a $9 million renovation by the partners that will incorporate an expanded food court dining area, larger bathrooms and additional comfort seating within the mall as well as improvements to the energy efficiency of the centre.

The former Sears location is approximately 92,500 square feet and by acquiring the site the partners will secure control over the entirety of the site and the access points to the shopping centre. In addition, it will simplify the ownership structure of the property should the partners seek redevelopment opportunities at the location.

ABOUT RIOCAN
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion as at June 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 299 properties, including 15 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 the acquisition of the former Sears locations at Oakville Place and Garden City Shopping Centre, 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, as described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended June 30, 2017 (“MD&A”) and the Trust’s most recent Annual Information Form, and including that the transactions contemplated herein are completed, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. 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.

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.

Information Contact:

RioCan Real Estate Investment Trust
Qi Tang
Senior Vice President and Chief Financial Officer
416-866-3033

Source: RioCan Real Estate Investment Trust

RioCan REIT updates on the development of its midtown Toronto project, ePlace

TORONTO, Canada, 2017-Sep-08 — /EPR Retail News/ — RioCan Real Estate Investment Trust(“RioCan”) (TSX:REI.UN) is pleased to provide an update on the development of its landmark, mixed-use, transit oriented project at the northeast corner of Yonge Street and Eglinton Avenue, also known as ePlace. The development is located in the heart of midtown Toronto at the intersection of Yonge Street and Eglinton Avenue, directly above the existing Yonge subway line and the new Eglinton Crosstown LRT.

The project is on track to be substantially completed in late 2018 or early 2019, and all of the residential units in the condominium portion of the development have been sold. Additionally, RioCan has entered into the following agreements with its partners with respect to the residential and retail components of the development:

1) On completion, RioCan, which currently owns a 50% interest in the rental residential tower, will purchase the remaining 50% interest in the rental residential tower; and

2) RioCan will acquire the remaining 50% interest in the retail component based on a 7% capitalization rate on the stabilized NOI on completion.

Additional details for both transactions are included below.

“This site represents the first of our purpose built rental residential assets that will be completed, and it is a prime example of the transit oriented, mixed-use urban developments that RioCan is undertaking in order to create substantial value across our portfolio,” said Edward Sonshine, CEO of RioCan. “As the project approaches completion over the next 12 to 16 months, we will recognize the residential inventory gains from the condominium tower and generate consistent rental income from the commercial and rental residential portions of the property.

“Over the next decade, as we transform many of our other urban, transit-oriented shopping centres, we will become the leading owner of newly constructed, retail focused, urban mixed-use properties in Canada’s major markets,” added Mr. Sonshine.

In the second quarter of 2014, RioCan (50% ownership) and its partners Metropia and Bazis International Inc. (50% ownership) commenced construction at ePlace. The project is comprised of three major components, a condominium tower, a rental residential tower, and the commercial/street retail space along Yonge and Eglinton at the base of the project. Excluding 152 parking stalls that have been sold with the condominium units, there remains 227 parking stalls allocated to the latter two components that will be used as rental parking for the rental residential tower and as fee parking for the retail and commercial space, which will generate additional income at the property.

Rental Tower

The rental tower, currently under construction, will reach 36 storeys and contain 466 apartment units. On completion, RioCan, which currently owns a 50% interest in the tower, will purchase the remaining 50% interest in the rental residential tower from its partners for $10 million plus the partners’ pro rata share of costs related to this portion of the development. The total purchase price for the remaining 50% interest is expected to be in the range of $95 to $105 million and is subject to final cost amounts.

Condominium Tower

The condominium portion of the project will reach 59 storeys containing 623 units, all of which were sold by the second quarter of 2015. The construction of the condominium tower is well advanced and all construction contracts have been awarded, with completion anticipated in late 2018 and residents taking possession in the fourth quarter of 2018 and early 2019.

Retail and Commercial

Included in the overall development project is approximately 43,500 square feet of net leasable area (“NLA”) at the base of the development. There are two floors of retail (one below grade retail) and two floors of office space. The retail component, which is approximately 23,000 square feet of NLA features street level and underground retail, will be anchored by an approximately 18,000 square foot full service TD Bank providing traditional banking as well as investment services.

RioCan has entered into an agreement to acquire the remaining 50% interest in the retail component from its partners based on a 7% capitalization rate on the stabilized NOI on completion, which is expected to be approximately $2 million per annum (at 100%). Considering the location and the quality of the lead tenant, current estimates place the market value of the retail portion to be approximately $40 million (at 100%).

The partners are currently marketing for sale the office space on the third floor and the office space not occupied by TD Bank on the second floor in the commercial component of the site.

About RioCan
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $13.9 billion as at June 30, 2017. RioCan owns and manages Canada’s largest portfolio of retail focused and mixed-use transit-oriented properties with ownership interests in a portfolio of 299 Canadian properties, including 15 properties under development, containing an aggregate net leasable area of 45 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 6,350 retail tenants and approximately 660 employees with a presence from coast to coast. We deliver real vision, solid ground. For more information, 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 made with respect to RioCan’s Northeast Corner, Yonge and Eglinton development project, its overall development program 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 June 30, 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.

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.

Contact Information:

RioCan Real Estate Investment Trust
Edward Sonshine, O. Ont., Q.C.
Chief Executive Officer
(416) 866-3018
www.riocan.com

Source: RioCan Real Estate Investment Trust/ GLOBE NEWSWIRE

RioCan REIT successfully completes issuance of $250 million principal amount of Series X senior unsecured debentures

TORONTO, ONTARIO, 2016-Aug-27 — /EPR Retail News/ — RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) announced today (Aug. 26, 2016) that it has successfully completed its issuance of $250 million principal amount of Series X senior unsecured debentures (the “Debentures”). The agency syndicate was co-led by RBC Capital Markets, TD Securities and BMO Capital Markets. The Debentures will carry a coupon rate of 2.185% and will mature on August 26, 2020.

The offering was made under RioCan’s base shelf short form prospectus dated August 10, 2016. The terms of the offering are described in a prospectus supplement dated August 23, 2016, which was filed with Canadian securities regulators.

About RioCan:
RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $15 billion as at June 30, 2016. RioCan owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 302 Canadian retail and mixed use properties, including 15 properties under development, containing an aggregate net leasable area of 45 million square feet. For further information, please refer to RioCan’s website at www.riocan.com.

Contact Information:
RioCan Real Estate Investment Trust
Cynthia J. Devine
Executive Vice President,
Chief Financial Officer and Corporate Secretary
(647) 253-4973
www.riocan.com

Source: RioCan Real Estate Investment Trust