RioCan has four property dispositions under conditional contracts where conditions have not been waived pursuant to purchase and sale agreements at an aggregate sales price of $35.7 million. The properties are free and clear of financing and have a gross leasable area of 433,000 square feet. These transactions are in various stages of due diligence and while efforts will be made to complete these transactions, no assurance can be given.
Additionally, RioCan is currently in the process of marketing for sale two other non-core Canadian properties. The properties have gross leasable area of 186,000 square feet. The fair value of the portfolio as at March 31, 2013 calculated in accordance with IFRS was approximately $13.4 million and the properties are free and clear of financing. RioCan is under no obligation to proceed with such proposed dispositions which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.
As at March 31, 2013, RioCan had ownership interests in 11 development projects. RioCan's development projects will, upon completion, comprise about 10.5 million square feet (4.8 million square feet at RioCan's interest). In addition to its development projects, RioCan continues its urban intensification activities, primarily in the Toronto, Ontario market.
During the three months ended March 31, 2013, RioCan acquired a 50% interest in Sage Hill Crossing, a 34 acre Greenfield development site located in Northwest Calgary, Alberta, at a purchase price of $32 million ($16 million at RioCan's interest) with KingSett on a 50/50 joint venture basis. Once completed, the anticipated gross leasable area is 378,000 square feet of retail use. A Letter of Intent is in place with Wal-Mart for a land lease and a binding offer to lease has been executed with Loblaws for a 45,000 square foot store. Development is expected to commence during the summer of 2013. The site was acquired free and clear of financing and RioCan will develop and manage the asset on behalf of the joint venture.
Development acquisitions completed subsequent to the First Quarter
The April 8, 2013 acquisition of Calgary East Village, a 2.8 acre site located in the East Village area of downtown Calgary, Alberta. The site is one of downtown Calgary's few remaining privately owned full city blocks. The site was acquired on a 50/50 joint venture basis between RioCan and KingSett at a purchase price of $20 million ($10 million at RioCan's interest). The site was acquired free and clear of financing and RioCan will develop, lease and manage the property on behalf of the joint venture. The joint venture is contemplating the development of 560,000 square feet of mixed use retail and office space, with development anticipated to commence in the spring of 2014. An executed Letter of Intent with Loblaws is in place to lease 100,000 square feet of space on the second floor of the development and expressions of interest have been received from several other potential tenants.
The April 23, 2013 acquisition of West Kanata Lands, a 52.5 acre parcel of land located in Kanata, Ontario, approximately 20 kilometers west of Ottawa, Ontario. The site was acquired on a 50/50 joint venture basis between RioCan and Tanger at a purchase price of $29.4 million ($14.7 million at RioCan's interest). The site was acquired free and clear of financing and RioCan acquired a managing interest in the development property. It is intended that the site will be developed into an estimated 347,000 square foot outlet centre with the development expected to commence in the second quarter of 2013.
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