PLAZA RETAIL REIT ANNOUNCES NEW PROPERTY ACQUISITIONS IN QUEBEC AND ONTARIO AND PROVIDES UPDATE ON DEVELOPMENT PROJECTS
Jan 19, 2022
FREDERICTON, NB, Jan. 19, 2022 /CNW/ - Plaza Retail REIT ("Plaza" or the "Trust") (TSX: PLZ.UN) is pleased to announce that it has acquired interests in three new properties in Quebec and Ontario and to provide an update on ongoing development and redevelopment projects.
Plaza has acquired interests in the following properties for development or redevelopment:
- St-Joseph Boulevard, Drummondville, Quebec: this site is anchored by a newly-opened Maxi (Loblaw) grocery store. Plaza intends to redevelop 34,000 square feet of vacant space and add additional retail space. This site will have a gross leasable area of 81,000 square feet upon completion. Plaza owns a 50% interest in this property.
- Corner of Royaume Boulevard West and Talbot Boulevard, Chicoutimi (Saguenay) Quebec: land was purchased for a new 90,000 square foot retail development, for which significant pre-leasing is already in place. Plaza owns a 37.5% interest in this property.
- Mapleview Drive West, Barrie, Ontario: located on a key thoroughfare in southern Barrie, this land is intended for a 60,000 square foot grocery-anchored development, the majority of which has been pre-leased. Plaza owns a 50% interest in this property.
"These purchases demonstrate our commitment to build on our already robust development pipeline" said Michael Zakuta, Plaza's President and CEO. "We are pleased to be able to continue to grow our portfolio by acquiring and developing high quality assets that provide Plaza with both immediate and long-term opportunities to build value for unitholders."
Plaza also continues to execute on existing development and redevelopment projects, including:
- Tri-City Plaza, Cambridge, Ontario: Phase I of this redevelopment is expected to be completed this spring, and Phase II will be starting in February. The majority of this redevelopment has been pre-leased.
- Northern Avenue Plaza, Sault Ste. Marie, Ontario: the lease buyout of a non-operating large box tenant at this grocery-anchored site allowed Plaza to redevelop and fill the large box space with multiple tenants. Phase I of the redevelopment is anchored by Princess Auto and is currently under construction. Subsequent phases of the redevelopment are expected to start in late 2022.
- Taunton Road, Oshawa, Ontario: construction for this 46,000 square foot grocery-anchored development has recently commenced and is expected to be completed in mid-2023.
- Plaza des Laurentides, Saint-Jérôme (greater Montréal), Quebec – Phase III: Plaza has completed leases on 54,000 square feet of additional space and anticipates starting construction shortly. This development is expected to be completed in the first quarter of 2023.
"We are happy with how these projects are progressing and with our ability to enhance our portfolio, not only through new property acquisitions, but also through ongoing development and redevelopment projects such as these," said Mr. Zakuta. "Upon completion, these projects will increase our FFO and cash flows and contribute even further to unitholder value."
"Our proven ability to develop new ground-up projects, as well as redevelop newly acquired and existing assets, sets us apart. We look forward to more opportunities that will allow us to draw on our expertise for the benefit of our unitholders."
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at September 30, 2021 includes interests in 255 properties totaling approximately 8.6 million square feet across Canada and additional lands held for development. Plaza's portfolio largely consists of open-air centres and stand-alone small box retail outlets and is predominantly occupied by national tenants. For more information, please visit www.plaza.ca.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements with respect to Plaza and its operations, which can generally be identified by the use of forward-looking words such as "will", "expect", "anticipate", "intend", "continue" and variations of such words and similar expressions or phrases that do not relate to historical facts. Forward looking statements in this press release include, but are not limited to, those which relate to the expected commencement of construction and completion of development and redevelopment projects within the timeframes identified and that the projects will increase FFO and cash flows upon completion. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, but not limited to, the duration of the COVID-19 pandemic and its impact on the business, operations and financial condition of the Trust, its tenants and the economy in general; changes in economic, retail, capital market, or debt market conditions; Plaza's ability to lease or re-lease space at current or anticipated rents; and those described in Plaza's Annual Information Form for the year ended December 31, 2020 and Management's Discussion and Analysis for the three months ended September 30, 2021, which can both be obtained on SEDAR at www.sedar.com. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release.
SOURCE Plaza Retail REIT
For further information: Michael Zakuta, President & Chief Executive Officer, Plaza Retail REIT, Tel: 514.919.5041; Jim Drake, Chief Financial Officer, Plaza Retail REIT, Tel: 902.483.4064