Retrocom Mid-Market Real Estate Investment Trust

Retrocom Mid-Market Real Estate Investment Trust

July 12, 2011 08:12 ET

Retrocom Mid-Market REIT Announces Investment in Mississauga, Ontario Joint Venture and the Redevelopment of 1480 Dundas Street East Property

TORONTO, ONTARIO--(Marketwire - July 12, 2011) -


Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the "REIT" or "Retrocom") announced today that it has entered into an agreement to acquire a 30% interest in an approximately 33.7 acre land parcel near the intersection of Dundas Street East and Dixie Road in Mississauga, Ontario (the "Lands") and to form a new partnership (the "Joint Venture") for the purposes of developing thereon a new Walmart-anchored power centre. The Joint Venture is a limited partnership comprised of Retrocom and affiliates of the Azuria Group and Fieldgate Commercial Development Limited. In addition, Retrocom announced that it is negotiating a purchase and sale agreement whereby Retrocom's adjacent property to the Lands, located at 1480 Dundas Street East, will be rolled into the Joint Venture. The sale of the 1480 Dundas Street East property is expected to close in the third quarter of 2011 and is subject to due diligence and customary closing conditions.

The Development

Following closing on the Lands and the roll-in of the 1480 Dundas Street East property, the total development project will comprise of approximately 39 acres of developable area just east of the busy Dundas Street East and Dixie Road intersection in Mississauga, Ontario (the "Development"). The Joint Venture plans to develop a new power centre with approximately 430,000 square feet of GLA including an approximately 156,000 square foot Walmart, for which a lease has already been executed. The remaining approximately 274,000 square feet of GLA will be leased to well-known national and regional tenants as well as local tenants servicing the immediate community. The Development is expected to commence construction in July 2011 and is expected to be completed by November 2013. Retrocom's total investment in the Development is expected to be approximately $30 million.

The Joint Venture has entered into agreements with Fieldgate Construction Management Inc. and K.F. Management Co. (affiliates of Fieldgate) and Smartcentres Management Inc. to perform development, construction management and property management services relating to the Development.

"This investment in the Dundas Street East and Dixie Road development allows Retrocom to realize and maximize the value from a forty-year old property it currently owns, into a 30% investment in a significant new power centre anchored by Walmart and other high quality tenants", said Richard Michaeloff, Chief Executive Officer.

Cautionary Statements

This press release contains forward-looking statements including statements concerning the expected roll-in and sale of the 1480 Dundas Street East property and statements about management's beliefs, plans, estimates and intentions with respect to the Joint Venture and the Development. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "intend", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the REIT. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

About Retrocom Mid-Market REIT

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which focuses on owning and acquiring community-based commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.

About the Azuria Group

The Azuria Group of companies has been serving commercial and residential tenants in the Greater Toronto Area since the mid 1960s. The Azuria Group is a family run business that owns and manages a portfolio of well located multi-residential and commercial properties in the Greater Toronto Area.

About Fieldgate

The Fieldgate group of companies is a family owned and managed company that has been in operation since 1957. Fieldgate develops and manages commercial properties throughout Ontario. With extensive experience and a portfolio of nationally recognized tenants, Fieldgate has earned recognition with all clients, investors and contractors, as a predominant retail developer.

Contact Information

  • Retrocom Mid-Market REIT
    Richard Michaeloff
    Chief Executive Officer
    (416) 741-7999 ext. 5227
    (416) 741-7993 (FAX)