RioCan Real Estate Investment Trust Announces Disposition of Partial Interests and Formation of New Partnerships for Mixed-use Development Projects in Toronto and Montreal

TORONTO, Jan. 05, 2021 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) today announced the completion of three transactions including the introduction of two new partners and the unwinding of a former partnership as follows:

• A new 50/50 partnership with Fieldgate Urban (“Fieldgate”) for a mixed-use condominium development with the combination of respective properties along Bloor Street West in Toronto’s Kingsway neighbourhood;
• A new 50/50 co-ownership with Broccolini Real Estate Group (“Broccolini”) with the sale of a 50% interest in RioCan’s mixed-used development of its RioCan Centre Kirkland (“Centre Kirkland”) in Montreal; and
• The dissolution of a co-ownership with Talisker Corporation (“Talisker”) with RioCan’s acquisition of the remaining 50% interest in the development component of the Queensway property in Toronto and the disposition of its 50% interest in the Cineplex component of the property.
  

These strategic transactions improve project efficiencies, provide risk and cost sharing with two reputable and dominant residential developers within their respective markets and in the case of the Queensway property, allows RioCan to focus on an immediate and high potential development opportunity.

“We are very pleased to announce the completion of these transactions to further advance our exciting mixed-use developments in Toronto and Montreal. 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, Chief Executive Officer 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.”

New 50/50 Partnership with Fieldgate Urban for Mixed-use Development along Bloor Street West in Toronto

RioCan has formed a 50/50 partnership with new partner, Fieldgate, to build a mixed-use condominium project along Bloor Street West, directly across from the TTC’s Royal York subway station, in Toronto’s affluent Kingsway neighbourhood. The transaction involves the sale of a 50% interest in RioCan’s 2939 – 2943 Bloor Street West property to Fieldgate and the acquisition of a 50% interest in Fieldgate’s 2915 – 2917 Bloor Street West property, resulting in both partners having a 50% interest in the combined site. The transaction is valued at $180 per square foot buildable density. The net transaction price was approximately $8.0 million paid by RioCan to Fieldgate, including reimbursement of its share of development costs incurred to date. The combination of the two adjacent sites will allow for a development project of increased scale with greater density allowance and development efficiencies. The project is expected to receive final approvals and initiate pre-sales by year end 2021 followed by condominium sales activity to be launched in the second half of 2022. RioCan will act as retail property manager and Fieldgate as construction and development manager for the project.