RioCan Real Estate Investment Trust has acquired Trinity Developments Limited’s interests in four of the companies’ shared properties.
The $105-million investment includes East Hills and McCall Landing in Calgary, and The Stockyards in Toronto. In addition, RioCan paid $11 million for Trinity’s share in the grocery-anchored Whiteshield Plaza in Toronto.
The Stockyards development is located on a 19-acre site at St. Clair Avenue and Weston Road. The 551,000-square-foot project is anchored by a new 149,000-square-foot Target location.
The Canada Pension Plan Investment Board (CPPIB) acquired 50 per cent interest in the project from RioCan in June 2008. The majority of retailers on the site will be open by mid-2014.
The East Hills development in Calgary is located on a 145-acre site. It will be developed into a three-phase, 1.1-million-square-foot regional retail centre. A 134,000-square-foot Walmart, which will anchor the site, is expected to open in the second quarter of 2014.
Located at 36th Street NE and Country Hill Boulevard NE in Calgary, McCall Landing is a 109-acre retail development, which will feature about 862,000 square feet of retail space. CPPIB has 50 per cent interest in this property, with RioCan now owning the other 50 per cent.
The Whiteshield Plaza in Toronto is a 156,000-square-foot grocery-anchored shopping centre. RioCan originally had a 10 per cent interest in the plaza, but recently acquired an additional 40 per cent interest. It acquired the remaining 50 per cent interest from Trinity for $11 million.
RioCan acquired Trinity’s 10 per cent interest in East Hills, 25 per cent in McCall Landing and 25 per cent in The Stockyards. For these three assets, RioCan will assume the role of development manager, and have leasing responsibilities of the projects.
“The staggered nature of these developments is attractive,” says Edward Sonshine, CEO of RioCan. “The Stockyards is nearing completion and the income from this property is beginning to come on-stream, as Canada’s first purpose built Target store opened this month. The first phase of East Hills is expected to become income producing with the opening of Walmart in the second quarter of 2014. The third development site, McCall Landing, will provide longer term returns to our unit holders.”
