RioCan Real Estate Investment Trust and Plaza Retail REIT Announce Joint Venture to Redevelop Three Properties

TORONTO, June 16, 2016 /CNW/ - RioCan Real Estate Investment Trust ("RioCan") (TSX: REI.UN) and Plaza Retail REIT ("Plaza") (TSX: PLZ.UN) announced today that they have entered into a 50/50 joint venture focused on redeveloping three properties located in Ontario and New Brunswick, currently owned by RioCan.  Under the terms of the arrangement, Plaza will manage the three assets and oversee redevelopment efforts for the joint venture.

Under the agreement, RioCan sold a 50% managing interest in the three properties, listed below, at an aggregate sale price of $11.5 million, which were sold free and clear of financing.

 

 

"We are very pleased to enter into this venture with Plaza who has an excellent reputation for redeveloping centres in central and eastern Canada, which will allow RioCan to focus on its own development strategy of urban intensification in Canada's six major markets" said Edward Sonshine, CEO of RioCan.

"We are excited to have an opportunity to work with RioCan to redevelop these three properties.  These redevelopments will unlock long-term value for our respective unitholders by creating stronger and more stable retail properties in these markets" stated Michael Zakuta, President & CEO of Plaza.  

About RioCan

RioCan is Canada's largest real estate investment trust with a total enterprise value of approximately $16 billion as at March 31, 2016. RioCan owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 303 Canadian retail and mixed use properties, including 16 properties under development, containing an aggregate net leasable area of 46 million square feet. For further information, please refer to RioCan's website at www.riocan.com.

About Plaza

Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada.  Plaza's current portfolio includes interests in 300 properties totaling approximately 7.1 million square feet across Canada and additional lands held for development.  Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 91% national tenants.  For further information, please refer to Plaza's website at www.plaza.ca.

Forward-Looking Statements

This news release contains forward looking statements within the meaning of applicable securities laws, which are based on expectations, estimates, forecasts and projections.  These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict.  Therefore, actual outcomes and results may differ materially from those expressed in these forward looking statements.  Readers, therefore, should not place undue reliance on any such forward looking statements.  Further, a forward looking statement speaks only as of the date on which such statement is made.  Neither RioCan nor Plaza undertake any obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except for forward-looking information disclosed in prior disclosures which, in light of intervening events, requires further explanation to avoid being misleading.

 

SOURCE Plaza Retail REIT