TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- RioCan Real Estate Investment Trust ("RioCan") (TSX: REI.UN), Allied Properties Real Estate Investment Trust ("Allied") (TSX: AP.UN) and Diamond Corp. ("Diamond") have entered into an agreement to acquire 410 Front Street West in Toronto (the "Property") for $37.25 million. The purchase is expected to be completed in April of 2013, with each of RioCan and Allied having an undivided 40% interest and Diamond having an undivided 20% interest.
The Property is comprised of approximately 1.2 acres of land on the northwest corner of Front and Spadina. It is adjacent to the 6.47 acres of land acquired late last year by RioCan, Allied and Diamond on the same proportionate basis.
The Property is currently zoned for commercial use. The joint-venture partners intend to develop the Property as a retail and office complex that will integrate with, and complement, the mixed-use redevelopment planned for the larger site acquired last year.
RioCan, Allied and Diamond will act as joint development managers. Upon completion, RioCan will act as property manager for the retail component and Allied will act as property manager for the office component of the redevelopment.
Edward Sonshine, CEO of RioCan said, "We are pleased to be able to acquire the corner piece of the property, which will nicely complete the overall parcel and provide good frontage along Spadina Avenue. We are eagerly looking forward to working with all stakeholders to design and build a large scale mixed use development of which all of Toronto will be proud."
Michael Emory, President and CEO of Allied added, "We're excited about anchoring the larger redevelopment project with a landmark office building on the corner of Front and Spadina. We believe it will have great appeal to the growing number of forward-looking office users attracted to Toronto's vibrant Downtown West."
Stephen Diamond, President of Diamond said, "We look forward to expanding our City building at this gateway location to downtown West. Along with our initial acquisition, this Spadina address will allow us to knit together an exciting mix of uses in an iconic building that will complement and strengthen Toronto's Downtown in a way not yet experienced in this City."
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $14.3 billion as at December 31, 2012. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 346 retail properties containing more than 82 million square feet, including 52 grocery anchored and new format retail centres containing 13.6 million square feet in the United States through various joint venture arrangements as at December 31, 2012. RioCan's portfolio also includes 11 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.
Allied is a leading owner, manager and developer of urban office environments that enrich experience and enhance profitability for business tenants operating in Canada's major cities. Its objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth. For further information, please refer to Allied's website at www.alliedreit.com.
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