Tag Archives: riocan

RioCan Getting Ready to Offer More Properties

Southbank Centre, 25 KM From Calgary, For Sale in Most Current Wave to Hit Market as Part of $2 Billion Disposition Plan

RioCan, the country’s largest real estate financial investment trust, is preparing to list more assets for sale as part of its strategy to deal with $2 billion in residential or commercial property and refocus on six core markets.

CoStar News can report the Toronto-based REIT has actually secured CBRE Ltd. to market properties about to strike the market.

The brokerage has prepared a sales brochure for Southbank Centre, a 145,213-square-foot retail home in Okotoks, Alberta, marketing the property as part of the “rapidly magnifying neighborhood in the Calgary area.”

The home in the Calgary bedroom suburb, about 25 kilometres south of the city, would appear to not fit into RioCan’s core plan, which also includes Edmonton, Toronto, Ottawa, Montreal and Vancouver.

” Southbank Centre is on the marketplace, as are others,” Ed Sonshine, chief executive of the REIT, confirmed, via email.

Sonshine has stated the sale procedure is speeding up but it will probably still take two years to dispose of all $2 billion in real estate being targeted, which is expected to provide $1.5 billion in net proceeds but still leave RioCan the biggest REIT in Canada.

In November, RioCan announced the first relocation in the method with a $200 million sale of 7 retail residential or commercial properties in Ontario, British Columbia and Saskatchewan to CT REIT, the realty arm of Canadian Tire, which was the anchor renter of the properties sold.

Sonshine has actually said RioCan is selling some of the 100 homes in “bundles” and got interest from purchasers shortly after announcing the prepared disposition.

In Southbank, RioCan is selling a home that is shadow anchored by destination merchants that consist of Costco, House Depot and Save-on-Foods, and is 97% rented with renters that consist of Goodlife, Winners, Michels, Sport Chek and Dollarama. The average weighted typical lease term at the centre, very first built in 2009, is 5.6 years.

CBRE is marketing the residential or commercial property as “regional financial investment opportunity”, however the cover page of the sales brochure recommends Southbank is a Calgary play.

” South Centre is preferably positioned within a region that is presently experiencing significant growths with a 79% year-over-year boost in housing starts,” the sales brochure states, referring to 3rd quarter 2017 stats.

Garry Marr, Toronto Market Reporter CoStar Group.

RioCan to Sell 7 Canadian Tire-Anchored Characteristics in $200 Million Offer

Canada’s biggest real estate investment trust has shot on a $200 million offer, the very first move in a plan to offer $2 billion in possessions that will refocus RioCan REIT on 6 core markets.

Toronto-based RioCan will sell 7 retail homes to CT REIT, the realty arm of Canadian Tire, which is the anchor tenant of the properties being sold. The annualized income from the homes is $12 million, based upon the very first nine months of 2017.

RioCan chief executive Edward Sonshine informed CoStar News that the REIT’s scheduled property sale of 100 residential or commercial properties in secondary markets far from metropolitan cores cities that include Toronto, Vancouver, Edmonton, Calgary, Montreal and Ottawa is going “very well” and his company is selling properties in “plans,” the very first one being the deal with CT REIT.

In Ontario, the assets include the 210,000-square-foot Collingwood Centre; the 144,000-square-foot GoodLife Centre in St. Catharines; the 318,000-square-foot Orillia Square Shopping Center; the 148,000-square-foot Sudbury Location and the 126,000-square-foot Upper James Shopping Mall in Hamilton. The other two residential or commercial properties are the 73,000-square-foot Southwinds Crossing in Oliver, British Columbia, and the 264,000-square-foot Parkland Shopping Center in Yorkton, Saskatchewan.

” The first $500 million to $600 million will be exactly what I call direct offers,” stated Sonshine, adding a half dozen offers are in settlement. “When we announced this (in October), and this is why I’m so encouraged, is we were inundated with inbound calls from actual purchasers, not simply brokers.”

RioCan’s first $200 million transaction is expected to see the majority of the shopping malls close in December 2017, and the rest to close in the first quarter of 2018. The net proceeds are being used to pay for financial obligation, fund unit repurchases through a regular course issuer program and fund the trust’s advancement activities.

” I don’t believe our unit worth comes even near recognizing the value of our portfolio,” said Sonshine, in describing the buyback. His business likewise plans to spend $400 million on advancement every year for the next five years.

The CEO said the sale procedure is accelerating but it will most likely still take two years to sell all $2 billion in real estate being targeted, which is expected to deliver $1.5 billion in net profits but still leave RioCan the largest REIT in Canada.

CT REIT stated the 1,283,000 square feet of incremental gross leasable area being acquired features a weighted typical going-in cap rate of 6.3% and that the offer will be moneyed through credit centers.

” We are happy to be purchasing these well-located residential or commercial properties, each which is tenanted by Canadian Tire, and in many cases, other members of the Canadian Tire Household of Companies,” stated Ken Silver, president and CEO of CT REIT, in a statement. “With the insight we have into retail store efficiency in addition to the attractive basics of the marketplaces where these residential or commercial properties are located, we are exceptionally pleased with these additions to our growing portfolio.”

Garry Marr, Toronto Market Reporter CoStar Group.

RioCan to Shed 100 Smaller sized Retail Residence Throughout Canada Valued at Over $1.6 Billion

After Taking out of U.S. REIT Ramps Up Portfolio Realignment to Focus on Toronto, Calgary and Other Major Markets in Canada

Toronto-based RioCan Real Estate Investment Trust announced plans to sell about 100 retail homes situated outside its core markets over the next two to three years and strategies to recycle profits into new developments within the country’s 6 biggest metros.

RioCan stated it expects to see about United States $1.2 billion in proceeds from the $1.6 billion in personalities however did not recognize the properties it plans to shed. In 2015, RioCan exited the United States via the sale of 49 retail residential or commercial properties in Texas and the northeastern U.S.

By the end of 2019, as the company sells the homes in stages, it expects its holdings concentreated in major Canadian markets will make up well over 90% of overall earnings, according to RioCan CEO Edward Sonshine.

“While the homes we plan to offer are solid, trusted earnings residential or commercial properties, their annual NOI growth lags the development we have the ability to accomplish in our primary market portfolio,” Sonshine stated. “At the exact same time, the existing stage of our development program will have adequate conclusions over the next couple of years to more than make up for what we will be offering.”

RioCan said it prepares to continue investing about $300 million to $400 million every year into its development pipeline, which is already focused solely in Canada’s 6 major markets.

Through the realignment of the portfolio, the trust seeks to reach yearly same-property net operating income (NOI) development rate of 3% or more, resulting in annual funds from operations (FFO) per unit development of 5% or more, before gains from securities, property inventory and charge income.

RioCan to Sell 100 Smaller sized Retail Residence Across Canada Valued at Over $1.6 Billion

REIT Ramps Up Adjustment of Portfolio to Focus on Toronto, Calgary and Other High-Growth Canadian Markets

Toronto-based RioCan Realty Financial investment Trust announced today it plans to offer about 100 smaller and non-core residential or commercial properties over the next two to three years and will utilize the proceeds to increase development in the country’s six biggest high-growth metros.

RioCan, which expects to get about United States $1.2 billion in proceeds from the $1.6 billion in dispositions, did not determine the properties involved in the scheduled sale. In the decade given that RioCan made a tactical decision to concentrate on high-population-growth transit-oriented Canadian markets, consisting of the revealed sale of 49 retail properties in Texas and the northeastern U.S. in 2015, the company has concentrated 75% of its income into the 6 biggest Canadian markets, including Calgary, Ottawa and Toronto.

By the end of 2019, as the business offers the properties in phases, leading Canadian markets are expected to make up well over 90% of total earnings due to the fact that of the new initiative, RioCan CEO Edward Sonshine said in a teleconference.

“While the properties we mean to offer are solid, trustworthy income residential or commercial properties, their annual NOI development lags the development we have the ability to achieve in our main market portfolio,” Sonshine stated. “At the exact same time, the current phase of our advancement program will have sufficient completions over the next few years to more than make up for exactly what we will be selling.”

RioCan will continue to invest about $300 million to $400 million every year into its advancement pipeline, which is already focused specifically in Canada’s 6 major markets.

Through the realignment of the portfolio, the trust looks for to reach annual same-property net operating income (NOI) development rate of 3% or more, leading to annual funds from operations (FFO) per system development of 5% or more, before gains from securities, residential stock and charge earnings.

RioCan Real Estate Explores Sale of U.S. Assets

U.S. Shopping Center Profile Might Deserve As Much As $2.9 Billion

RioCan Property Investment Trust, Canada’s biggest shopping center owner and REIT, states it launched a strategic evaluation to explore choices for its U.S. operation, including the possible sale of all or part of its portfolio.

Morgan Stanley and Royal Bank of Canada have been worked with for the testimonial of the U.S. portfolio, which represents about 19 % of RioCan’s total building financial investments by value in 48 homes concentrated in the Texas markets of Dallas, Austin, Houston and San Antonio, with the rest in northeast and other states.

These strategic alternatives will include, however are not restricted to, continuing to operate and invest in the united state portfolio, the sale of some or all its homes in the U.S., and other strategic joint endeavor options.

It’s prematurely to hypothesize what sort of deal if any the strategic testimonial may result in, but RioCan anticipates to supply an update on the strategic evaluation by year end or early 2016, stated Cynthia Devine, RioCan senior vice president and primary financial officer.

Given that RioCan expanded its building profile into the united state throughout the 4th quarter of 2009, the Canadian REIT has actually gained from the development in the value of the united state portfolio. RioCan views the market in the U.S. as having ended up being more competitive as capitalization rates have actually compressed and more financiers with low expenses of capital have gotten in the market. The weakening Canadian dollar and rising need and prices for U.S. commercial property have made acquisitions enhancing tough.

“This is something we’ve been taking a look at and considering probably for over a year. And the easy factor for the review is that it’s very tough to grow down there,” CEO Edward Sonshine said.