TORONTO, Oct. 03, 2019 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan”) (TSX:REI.UN) is pleased to announce the acquisition of a 50% co-ownership interest in 2323 Yonge Street for $27.1 million in the block immediately north of the Yonge Eglinton intersection in Toronto, Ontario. The property is co-owned through a 50/50 joint venture with Streamliner Properties Inc. (“Streamliner”) a specialized real estate investment and development firm.
The property is comprised of one eight-storey Class B office building, with street front retail occupied by strong national tenants. The building contains 67,400 square feet of commercial space, which is currently 100% leased. The property is located in the immediate area of ePlace™, comprised of RioCan’s 466-unit rental building eCentral™, e2 Condos, a 440-unit condo development currently underway in which RioCan has a partial interest, and the 623-unit fully sold and completed e8 Condos, and RioCan’s Yonge Eglinton Centre, all of which will have direct underground access to the Yonge/University subway line and the Eglinton Crosstown LRT upon completion of the LRT line.
“This acquisition enhances RioCan’s dominant presence in the Yonge Eglinton transit hub right at the heart of mid-town Toronto. RioCan owns not only the northeast and northwest corners of the thriving intersection through ePlace and Yonge Eglinton Centre, but now owns another key asset further north on Yonge Street in this major urban corridor. It represents another important step in expanding our dynamic portfolio of urban mixed-use assets in Canada’s major markets, particularly in the ever growing Greater Toronto Area,” said Edward Sonshine, Chief Executive Officer of RioCan.
"We are thrilled to partner with RioCan on a project of this significance,” said Chris Sherriff-Scott, President of Streamliner. "The Yonge Eglinton area is one of the city’s most vibrant neighbourhoods - a place where people live, work, shop and relax. We value the opportunity to enrich the experience for the thousands of people living in and visiting this area each day.”
RioCan believes that there is substantial potential in the property, in part due to the significant demand for office space in the Yonge Eglinton corridor. All of the property’s leases are set to expire over the next five years and have sizeable rent growth potential on lease renewals. RioCan also anticipates to significantly improve the operating efficiency of the property over time through revenue enhancement and cost control initiatives, as well as economies of scale generated by RioCan’s ownership of three key properties at this critical intersection. In addition, as the site is situated within a provincially designated Urban Growth Centre, there is significant residential intensification potential, which could further expand our RioCan Living™ portfolio, meet and enrich local community housing needs and create incremental, sustainable income streams while complementing our adjacent retail space. This would drive further income and net asset value (NAV) growth for our unitholders.
RioCan is one of Canada’s largest real estate investment trusts with a total enterprise value of approximately $14.3 billion as at June 30, 2019. 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. As at June 30, 2019, RioCan’s portfolio is comprised of 230 properties with an aggregate net leasable area of approximately 39.1 million square feet, including residential rental and 13 development properties. 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 reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions 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 “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, 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 in the “Risks and Uncertainties” section in RioCan's MD&A for the period ended June 30, 2019 and in our most recent Annual Information Form, 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 this forward-looking information.
The forward-looking statements contained in this News Release are made as of the date hereof, 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.
RioCan Real Estate Investment Trust
Senior Vice President and Chief Financial Officer
416-866-3033 | www.riocan.com
Source: RioCan Real Estate Investment Trust