Allied Properties REIT (TSX:AP.UN) and RioCan REIT (TSX:REI.UN)
today announced plans to proceed with full development of the
commercial component of The Well. Index Exchange has agreed to
lease up to 200,000 square feet of gross leasable area (“GLA”) at
The Well Tower, 8 Spadina Avenue, an office tower that Allied and
RioCan will construct on the northwest corner of Front Street West
and Spadina Avenue. Another high-calibre office user has agreed to
lease 125,000 square feet of GLA at 460 Front Street West, a
separate office component that will form part of The Well. The
commitments by the two office users represent 30% of the office GLA
at The Well. Allied and RioCan are also finalizing lease
transactions with two other office users for 533,752 square feet of
office GLA at The Well Tower, which would bring the leased area of
the office component of The Well to 80%.
The Well
The Well is a mixed-use residential, commercial
and retail development located in Toronto’s downtown west. Each of
Allied and RioCan owns an undivided 50% interest in the commercial
component of The Well. On completion, this will be comprised of the
following:
- approximately 1.067 million square feet of office GLA;
- approximately 425,000 square feet of retail GLA;
- approximately 700 underground commercial parking spaces;
- significant third-party digital signage entitlement on the
northwest corner of Front and Spadina; and
- the energy-storage facility necessary to extend Enwave’s
heating and cooling network to Toronto’s Downtown West.
Allied and RioCan are jointly developing the
commercial component of The Well. On completion, Allied will manage
the office component, and RioCan will manage the retail
component.
As part of a dynamic downtown mixed-use
community, The Well is expected to include approximately 1.46
million square feet of residential GLA across six buildings. The
residential component of The Well will include approximately 1,800
residences consisting of a mix of both rental and condominium
units. RioCan intends to maintain a 50% ownership interest in the
largest residential tower of the development, consisting of 590
purpose-built residential rental units.
The underground excavation for The Well Tower is
now complete, and the construction below grade has commenced.
Construction of The Well Tower and the remainder of the commercial
component above grade is now expected to continue without
interruption.
The Well Tower is registered under the LEED®
green building rating system and is targeting a LEED® Platinum
certification, as is the remainder of the office space at The
Well. It will include best-in-class operational,
environmental, life-safety and health and wellness systems.
Construction of the commercial component of The Well is scheduled
for completion in late 2021 with rent commencing in 2022.
Index Exchange has agreed to lease up to 200,000
square feet of GLA for a term of 12 years commencing in 2022. Index
Exchange is a global advertising marketplace where premium digital
media companies sell their ad impressions transparently and in real
time. Founded in 2001 and financed internally, Index Exchange has
evolved into a profitable and rapidly growing global advertising
marketplace.
“Although we’ve grown globally at a rapid pace
over the last few years, our commitment to Toronto has never
wavered,” said Andrew Casale, President and CEO of Index Exchange.
“Our new downtown headquarters demonstrates our growing investment
in technology and engineering talent in and across the Toronto
area, and we’re confident this new development will be a benefit to
the city at large.”
The other office user has agreed to lease
125,000 square feet of GLA for a term of 15 years commencing in
2022. These premises will form a separate and distinct office
component of The Well with a dedicated entrance off Front Street
West.
“We’re delighted that Index Exchange has
selected The Well Tower as the location for its global
headquarters,” said Michael Emory, President & CEO of Allied.
“As at King Portland Centre, a joint intensification project
between Allied and RioCan that is now fully leased and nearing
completion, the workspace at The Well will be built and operated
with a view to sustaining the environment and fostering human
wellness, diversity and creativity in an evolving global city.
Index Exchange will be an excellent partner for Allied and RioCan
in achieving these city-building goals.”
“The significant momentum of our office leasing
is a recognition of the unique attributes of The Well,” said Edward
Sonshine, CEO of RioCan. “RioCan and Allied have created a true
mixed-use community in the heart of downtown Toronto. The Well will
represent a vibrant community where both the office users and
residents will benefit from a singular and dynamic retail
experience drawing the look and feel of King Street West into an
open-air environment. Its centerpiece will be a 90,000 square-foot
food market that will serve as a hub not only for The Well, but the
greater downtown Toronto community.”
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 press 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 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 information generally can be identified by
the use of forward-looking terminology such as “objective”, “may”,
“will”, “expect”, “intend”, “anticipate”, “believe”, 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 press 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, but not limited to,
the timing and completion of the transactions contemplated by this
press release, general market conditions; interest rate and
financing risk; risks related to joint ventures and partnerships;
unexpected costs or liabilities; development risk associated with
construction commitments, project costs, related zoning and other
permit approvals, environmental matters, and those described under
“Risks and Uncertainties” in RioCan's Management's Discussion and
Analysis for the period ended March 31, 2018 ("MD&A"), which
could cause actual events or results to differ materially from the
forward-looking information contained in this press release.
Material factors or assumptions that were
applied in drawing a conclusion or making an estimate set out in
the forward-looking information may include, but are not limited
to: a stable retail environment; and a continuing trend toward land
use intensification, including residential development in urban
markets. For a description of additional risks that could cause
actual results to materially differ from management’s current
expectations, refer to Risks and Uncertainties in RioCan's MD&A
and Risks and Uncertainties in RioCan’s AIF. 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 this
forward-looking information.
The forward-looking information contained in
this News Release is made as of the date of this News Release, and
should not be relied upon as representing RioCan’s views as of any
date subsequent to the date of this News Release. Management
undertakes no obligation, except as required by applicable law, 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 one of Canada’s largest real estate
investment trusts with a total enterprise value of approximately
$13.7 billion at March 31, 2018. 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 284 properties,
including 17 development properties, with an aggregate net leasable
area of approximately 43 million square feet. To learn more about
how we deliver real vision on solid ground, visit
www.riocan.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael R. EmoryPresident & Chief Executive Officer(416)
977-0643 | memory@alliedreit.com
Edward Sonshine, O. Ont., Q.C.Chief Executive
Officer(416) 866-3018 | sonshine@riocan.com
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