Press release from Marketwire
RioCan Real Estate Investment Trust Provides an Update on Disposition Pipeline
Monday, November 18, 2013
RioCan Real Estate Investment Trust Provides an Update on Disposition Pipeline08:00 EST Monday, November 18, 2013
TORONTO, ONTARIO--(Marketwired - Nov. 18, 2013) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today is pleased provide an update on its disposition program.
RioCan has entered into a firm contract to sell its 50% share in Quartiers Dix/30, a 581,121 square foot new format retail property in Brossard, Quebec, to its partner Devimco at a sale price of $192.5 million, which equates to a capitalization rate of 5.35%. The partner will assume RioCan's share of the outstanding debt on the property, which amounts to $92.4 million and carries a weighted average interest rate of 4.8%. The outstanding debt has a weighted average term to maturity of approximately 3.7 years. The disposition is expected to be completed in the fourth quarter of 2013.
RioCan has also entered into a firm contract to sell The Brick Plaza, a 49,079 square foot non-grocery anchored retail centre in Windsor, Ontario at a sale price of $1.9 million. The property will be sold free and clear of financing. The disposition is expected to be completed in the fourth quarter of 2013.
On November 15, 2013, RioCan completed the sale of Coulters Mill, a 73,667 square foot non-grocery anchored retail centre in Thornhill, Ontario at a sale price of $20.5 million, which equates to a capitalization rate of 5.6%. The property has been sold free and clear of financing.
"The sale of these assets will allow RioCan to further de-lever its balance sheet while providing funding for its development and redevelopment program, which we believe will result in higher growth," said Edward Sonshine, Chief Executive Officer of RioCan.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13.6 billion as at September 30, 2013. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 346 retail properties containing more than 83 million square feet, including 51 grocery anchored and new format retail centres containing 14 million square feet in the United States as at September 30, 2013. RioCan's portfolio also includes 15 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.
This News Release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning RioCan's, intention to complete the disposition of certain assets, as well as other statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "objective", "may", "will", "expect", "intend", "should", "continue", or similar expressions suggesting future outcomes or events.
These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan's current estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in RioCan's Management's Discussion and Analysis for the period ended September 30, 2013 and in RioCan's annual information form dated March 28, 2013, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity and general market conditions, tenant concentrations, occupancy levels and defaults, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, United States of America ("US") investment and currency risk, and RioCan's qualification as a real estate investment trust for tax purposes. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US. 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 these forward-looking statements. Certain statements included in this News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.
The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the "SIFT Provisions"). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust ("REIT"). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.
Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
RioCan Real Estate Investment Trust
Executive Vice President & CFO