TSX:REI.UN - Post by User
Comment by
hroark7on Jan 31, 2024 11:19am
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Post# 35854956
RE:RE:RioCan sells Surrey's Strawberry Hill Shopping Centre: $155M
RE:RE:RioCan sells Surrey's Strawberry Hill Shopping Centre: $155MOn the surface this deal looks like a bit of a head scratcher. With earnings call in 2 weeks, the management team will definitely be questioned about this by the analysts so then we will understand the underpinnings of this deal in the fullness of time.
Certain things we do know: 1. On a surface level this looks like the kind of property they want to keep and develop, 2. They don't need to raise money as they are well capitalized
I'm thinking that this might be paired with a purchase of something strategically even more important. We shall see. Another consideration is that this property is deep inside Surrey, the Brampton of BC, so the demographics are, shall we say, difficult. Very difficult. Maybe the juice is not worth the squeeze and getting rid of a property that on the surface looks good but once you dig deeper, you realize is a problem property once you dig deep, is a great move.