TORONTO, ONTARIO--(Marketwire - Dec. 23, 2008) - RioCan Real Estate Investment Trust ("RioCan")(TSX:REI.UN) today announced the sale of air rights and residential density associated with a 3.6 acre parcel of land (the "Site") situated at the northernmost portion of its Brentwood Village Shopping Centre for a purchase price of $25.6 million. Brentwood Village Shopping Centre is owned in a joint venture between RioCan and Kimco Realty Corporation (NYSE:KIM). RioCan has successfully obtained the required land use approval to permit a mixed-use development, which was a prerequisite of the sale. The gain for RioCan on its interest is expected to be approximately $9 million.
Brentwood Village Shopping Centre is a commercial retail shopping centre consisting of 312,000 square feet of retail space on 22.9 acres, strategically located in Northwest Calgary along Crowchild Trail, one of the primary commuter routes to downtown. The University of Calgary and the Brentwood LRT station are immediately to the southwest of the Brentwood Village Shopping Centre. The major tenants at Brentwood Village Shopping Centre include: Safeway, London Drugs and Sears Whole Home.
The purchaser will redevelop the Site, which will involve approximately 50,000 square feet of the existing retail being demolished and replaced with a number of mixed-used buildings, with approximately 568,000 square feet of residential density, as well as approximately 40,000 square feet of retail space. RioCan will retain the retail component of the Site, which will see a significant increase in traffic at Brentwood Village Shopping Centre upon completion of the redevelopment.
"The sale of air rights for the redevelopment of a portion of the Brentwood Village Shopping Centre is consistent with RioCan's ongoing land use intensification program in major markets to redevelop existing properties in order to maximize the value of our portfolio," said Edward Sonshine, Q.C., President and CEO of RioCan.
Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates the largest portfolio of neighborhood and community shopping centers in the United States. As of September 30, 2008, the company owned interests in 1,945 properties comprising 182 million square feet of leasable space across 45 states, Puerto Rico, Canada, Mexico, Chile, Brazil and Peru. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 50 years. For further information, visit the company's web site at www.kimcorealty.com.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.1 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 237 retail properties, including 16 under development, containing an aggregate of over 58 million square feet. For further information, please go to RioCan's website at www.riocan.com.
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", "plans" 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: an increasing divergence in the general economy between eastern and western Canada; a less robust 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 and accelerating 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
RioCan Real Estate Investment Trust
Senior Vice President & CFO