RioCan and Concert are pleased to announce the signing of a firm agreement on May 17, 2017, with RioCan selling a 50 per cent interest in Sunnybrook Plaza at a sale price of $26.3 million ($52.5 million at 100%) to Concert.
RioCan will continue to act as the interim property manager until redevelopment commences, and will act as the retail property manager on completion. Concert will act as both development manager and property manager for the residential portion of the property.
RioCan and Concert will share in the development costs on a 50/50 basis with the transaction set to close in June 2017.
RioCan has received approval for its development proposal at its Sunnybrook Plaza, a transit-oriented development located on the northeast corner of Bayview and Eglinton Avenue. The development will be adjacent to a station on the Eglinton Crosstown LRT project that is currently under construction by Metrolinx, in one of Toronto’s highest demand residential neighbourhoods. The 16 and 11-storey mixed use residential project is close to a total of 375,000 square feet, which includes 43,000 square feet of retail space. Currently, RioCan and Concert are contemplating that the residential component will be developed as rental suites.
“Over the past 24 years we have amassed a strong portfolio of retail assets in Canada’s six major markets. Some of these properties now provide the opportunity to be redeveloped and intensified to make better use of the lands and improve the quality of our portfolio and the net asset value for our unitholders. During the planning stages of this process we are significantly enhancing the value of our properties, while continuing to generate revenue from these properties. When complete, we will have one of, if not, the best portfolio of newly developed urban transit-oriented mixed use properties that will be the foundation for the next twenty years of growth at RioCan,” said Mr. Sonshine Chief Executive Officer of RioCan. “Our agreement with Concert brings to the table a terrific partner with nearly thirty years of experience developing apartments, condominiums, and other commercial properties with an excellent property management platform that will ensure the success of this exciting mid-town Toronto development.”
“Established in 1989 with the mandate to provide assured rental housing in British Columbia, Concert has been developing purpose-built rental and delivering high-quality property management service to our tenants for over 27 years,” said Brian McCauley, Concert President and Chief Operating Officer. “Building on a solid track record of creating award-winning master-plan communities that leverage our experience, the Sunnybrook redevelopment represents an opportunity to integrate our multi-faceted expertise into an asset that will generate attractive, long-term returns for the pension funds who own Concert. We’re excited about the opportunity to develop this transit-oriented property in partnership with best-in-class retail landlord RioCan, the largest REIT in the country, and are well-aligned as long-term owners.”