RioCan has announced plans to acquire KingSett Capital’s 50 per cent stake in Yonge Sheppard Centre (the Centre) for an estimated $331 million.
The one million square foot, urban mixed-use property, consists of 299,000 square feet of retail, 401,000 square feet of office, and 257,000 square feet of residential rental space.
As part of the transaction, KingSett will take a material equity position in RioCan through an investment of $100 million in RioCan units with a one-year lock-up agreement.
The residential rental component is a 361-unit, 36-storey tower known as Pivot which is currently under construction – with substantial completion expected in July 2020.
According to the press release, a massive renovation of the Centre’s retail and office space is almost complete. The renovations include recladding the façade of both the office tower and shopping centre, as well as various interior improvements to modernize the overall look and feel of the property.
“The acquisition of the remaining 50% interest in Yonge Sheppard Centre is an important step forward in our continuous transformation to a major market, mixed-use focused REIT,” said Edward Sonshine, chief executive officer of RioCan. “KingSett’s investment of $100 million in RioCan units positions them amongst RioCan’s larger institutional unitholders, and we are pleased with this demonstration of confidence in the long-term value of RioCan.”
The transaction is expected to close by the end of August 2019.
Image courtesy of RioCan.