RioCan Real Estate Investment Trust Announces Future Redevelopment of Centre RioCan Kirkland
27 October 2017 - 7:00AM
RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) has
been the owner of Centre RioCan Kirkland (situated in the West
Island of Montreal) since the site was developed in 1999. It
currently consists of 39 acres of land occupied by a new format
retail centre of approximately 320,000 square feet that was at the
end of the previous quarter, 80 % occupied.
RioCan has now received a notice of expropriation from the
Ministry of Transportation of Quebec related to roughly 7 acres of
the site in order to accommodate a major station and parking
facilities as part of Montreal’s Reseau Electrique Metropolitain
(“REM”). Upon estimated completion in 2020, REM will provide
easy and fast access to Montreal’s downtown core, Montreal’s North
and South Shores, West Island and Trudeau Airport. With the
simultaneous road improvements to be undertaken by the City of
Kirkland, the remaining 32 acre parcel will present significant
opportunities for redevelopment and intensification.
In order to ensure that the property is redeveloped to its
highest and best uses, RioCan has entered into an agreement with
Broccolini Real Estate Group Inc. (“Broccolini”), a noted Montreal
based developer, to form a Joint Venture for the purpose of
redeveloping the property over time to become a mixed-use
residential, retail and office complex as part of our focus to
optimize the value of our existing properties to deliver value to
our unitholders and tenants, and meet the evolving needs of the
communities we serve. As part of this agreement, Broccolini
will purchase a 50% interest in the remainder of the Centre
RioCan Kirkland lands and will act as the development manager.
While plans for the new development are still in the process of
discussion between RioCan, Broccolini and the City of Kirkland, it
is expected that the eventual development will contain many times
the existing density on the site.
"This is a prime example of how our locations in Canada’s major
markets are becoming increasingly in demand as municipalities add
new transit infrastructure. Centre RioCan Kirkland is yet another
one of these properties in major market locations that are becoming
sites for, or located near major transit hubs," said Edward
Sonshine CEO of RioCan.
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.
About Broccolini
Broccolini is a leading single-source provider of construction,
development and real-estate services, catering to the industrial,
commercial, institutional and residential markets in Canada. Our
organization provides a range of services, acting variously as a
general contractor, construction manager, project manager, property
manager and developer. Broccolini is a 3rd generation family owned
business founded in 1949 with offices in Montreal, Ottawa and
Toronto.
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
future development potential at Centre RioCan Kirkland, 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 TrustQi TangSenior Vice President
and Chief Financial Officer416-866-3033
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