TORONTO, ONTARIO--(CCNMatthews - Sept. 1, 2005) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has executed a Letter of Intent for the purpose of creating a joint venture with Tribute Communities. The objective of the joint venture will be to develop a mixed-use building at the corner of Avenue Road and St. Germain Avenue, in Toronto, adjacent to RioCan's retail property.
Comprising over 1.5 acres, the existing retail facility will be redeveloped to accommodate a mixed-use building featuring a significant residential component, along with at least 25,000 square feet of retail street-front space. The project will be co-developed by RioCan and Tribute Communities.
The joint venture described above is conditional upon completion of definitive documentation and final zoning approvals being achieved to the satisfaction of both parties.
Howard Sokolowski, Chief Executive Officer of Tribute Communities, said, "Tribute is delighted to establish a business affiliation with RioCan, one of the premier developers and managers of commercial real estate in North America. The redevelopment of the Avenue Road and St. Germain Avenue property represents a significant opportunity to intensify land uses along a major arterial road, a stated objective of all levels of government."
Edward Sonshine, Q.C., President and CEO of RioCan, said, "We look forward to working with Tribute Communities, one of Canada's finest residential developers, on this project. The development will be the first of its kind in RioCan's land use intensification program which focuses on realizing the highest and best-use opportunities for each property. By redeveloping the existing facility, RioCan expects to add material value to the property."
RioCan's purpose is to deliver to its unitholders stable and reliable cash distributions, which continuously increase over time. RioCan is Canada's largest real estate investment trust with total assets of approximately $4.2 billion. It has ownership interests in a portfolio of 198 retail properties, including eight under development, across Canada containing an aggregate of 46.5 million square feet, including partners' and shadow anchors' interests.
About Tribute Communities
Tribute Communities has emerged as a leader in the Southern Ontario housing market over the past twenty (20) years, delivering in excess of twenty thousand (20,000) homes to purchasers. Tribute's capabilities cross the boundaries of all housing forms, with emphasis on product quality, an unsurpassed homebuyer experience and the completion of distinctive communities.
FOR FURTHER INFORMATION PLEASE CONTACT:
RioCan Real Estate Investment Trust
Edward Sonshine, Q.C.
President & CEO