RioCan Real Estate Investment Trust Realizes Density Value on Sales of Air Rights at The Well in Toronto and 5th & THIRD in Calgary

TORONTO, Dec. 23, 2020 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) today announced the completion of the sales of a portion of the air rights at The Well in Toronto and 5^th & THIRD in Calgary. Combined, RioCan realized density value totalling approximately $45.4 million at RioCan’s interest for the development of multi-residential condominium and rental buildings that will provide complimentary residential to the commercial components of RioCan’s mixed-used developments.

“Completion of these transactions is a positive indication of RioCan’s ongoing development progress and business activity despite current global challenges and circumstances,” said Edward Sonshine, Chief Executive Officer of RioCan. “Closing these transactions clearly points to the strong positioning of our assets, particularly for 5^th & THIRD, our property in Calgary. The strength of our portfolio and development pipeline continue to allow us to complete deals that provide cash flow to strengthen our balance sheet and support our development program.”

Air Right Sales at The Well in Toronto
As planned, RioCan and its partners at The Well, Allied Properties REIT and Diamond Corp, completed the sale of residential air rights and podium space at Building A and B of The Well to Woodbourne Capital Management (“Woodbourne”). At RioCan’s 40% interest, sales proceeds total approximately $25.0 million including cost recoveries.   

The Well is a new vibrant mixed-use community in Toronto’s downtown West that spans over seven and half acres and will comprise over 3.1 million square feet of office, retail and residential space. Construction at The Well continues to progress with the office component having reached 35 of 36 storeys with 84% of the office space pre-leased and on track for initial office tenants to take possession in 2021. Retail leasing at the site is ongoing as advanced discussions continue to progress with a number of retail tenants that would add to the overall character of The Well as envisioned. In addition, remaining air rights pertaining to four other residential buildings at The Well will be conveyed in 2021.