RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

August 05, 2009 09:31 ET

RioCan Real Estate Investment Trust Announces New Lease Agreements at Queen and Portland Development Project

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has executed lease agreements with Winners and Loblaws for retail space at its Queen and Portland site.

The plans for the Queen and Portland development project call for a total of approximately 92,000 square feet of retail space. The retail space at the site which was originally configured for a single tenant use has been repositioned to accommodate multiple tenants. "As a result of this change, we have been able to lease the property to high quality tenants that will serve the needs of the local community, as well as maintain the vibrant feel of the development" said Edward Sonshine, Q.C., President and CEO of RioCan. Loblaws has signed a lease for a supermarket use of approximately 45,000 square feet on the second floor and 8,000 square feet on street level for a flagship Joe Fresh clothing store. Winners has signed a lease for approximately 29,000 square feet on the third floor. The balance of the street front space, along Queen Street, is expected to be leased to a financial institution as well as two smaller tenants.

The Queen and Portland development is situated on a one acre site in downtown Toronto, Ontario, located in an area bound by Richmond Street to the south, Portland Street to the east, and Queen Street to the north. This development will be a mixed-use building featuring retail space on the first three storeys, as well as a five-storey residential component.

The site is being developed with Tribute Communities, which is developing the residential component. RioCan will own and manage the retail component of the development, and in addition is entitled to 40% of any profits generated on the sale of the residential units. A total of 90 residential units are available, of which 67 (74%) have been sold as at June 30, 2009. Construction has commenced and substantial completion is expected in 2011.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $7.1 billion as at June 30, 2009. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 247 retail properties, including 13 under development, containing an aggregate of over 59 million square feet. For further information, please refer to RioCan's website at

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future events and are based on our estimates and assumptions that are subject to risks and uncertainties, which could cause actual events or results described above to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, financing and interest rates, environmental matters and construction. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: a less robust economic and retail environment than we have seen for the last few years; interest costs to us remain relatively stable; acquisition capitalization rates increase and land costs for greenfield development decrease; a continuing trend towards land use intensification in high growth markets; and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs our future growth program and refinance our debts as they mature. Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • RioCan Real Estate Investment Trust
    Edward Sonshine, Q.C.
    President & CEO
    (416) 866-3018