- RioCan Real Estate Investment Trust (REI.UN) has signed two new development partnerships and bought out its position in a third
- The first is a 50-50 partnership with Fieldgate Urban for a mixed-use condominium development in Toronto, while the second is a 50-50 co-ownership with Broccolini Real Estate Group for a development in Montreal
- In addition, the trust has dissolved a partnership with Talisker Corporation by purchasing its 50 per cent stake in a Toronto development
- The trust said these transactions will improve project efficiencies, and spread both risks and costs
- RioCan Real Estate Investment Trust is currently up 1.95 per cent to C$16.74 per share
RioCan Real Estate Investment Trust (REI.UN) has signed two new development partnerships and bought out its position in a third.
According to today’s announcement, the first deal is a 50-50 partnership with Fieldgate Urban for a mixed-use condominium development in Toronto’s Kingsway neighbourhood.
Fieldgate will purchase a 50 per cent interest in RioCan’s 2939 – 2943 Bloor Street West property, while RioCan will purchase a 50 per cent stake in Fieldgate’s neighbouring 2915 – 2917 Bloor Street West property for approximately C$8 million.
The combination of the two adjacent sites is expected to allow for a development project of increased scale, with greater density allowance and development efficiencies.
The second transaction involves a 50-50 co-ownership with Broccolini Real Estate Group, under which RioCan will sell half of its Centre Kirkland in Montreal – an open air centre anchored by a Cineplex cinema – to Broccolini for roughly $19 million.
This project will include a complete revitalisation of the site, with the costs to be split evenly between the two companies.
Finally, RioCan has dissolved a co-ownership arrangement with Talisker Corporation by purchasing Talisker’s 50 per cent interest in Toronto’s Queensway property for $9.3 million.
The property consists of two parcels: the development land component and the Cineplex land component. Talisker purchased the latter as part of the deal for a 100 per cent ownership.
These transactions are expected to improve project efficiencies, spread both risks and costs, and allow RioCan to focus on other immediate and high-potential development opportunities.
“These projects are prime examples of how RioCan continues to expand its value creation opportunities based on its strong foundation of well-located properties,” said Edward Sonshine, CEO of RioCan.
“We look forward to working with our two new best-in-class partners as we create long-term value and increasingly transform our portfolio of assets into transit-oriented, mixed-used communities in Canada’s growing major markets,” he added.
RioCan Real Estate Investment Trust is currently up 1.95 per cent to C$16.74 per share at 2:16pm EST.
