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.