TORONTO, June 16, 2016 /CNW/ - RioCan Real Estate Investment
Trust ("RioCan") (TSX: REI.UN) and Plaza Retail REIT ("Plaza") (TSX: PLZ.UN) announced today that they have entered into a 50/50
joint venture focused on redeveloping three properties located in Ontario and New Brunswick, currently owned by RioCan. Under the terms of the arrangement, Plaza will manage the
three assets and oversee redevelopment efforts for the joint venture.
Under the agreement, RioCan sold a 50% managing interest in the three properties, listed below, at an aggregate sale price of
$11.5 million, which were sold free and clear of financing.
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Property Name
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Location
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NLA (at 100%)
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East Court Mall
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Cornwall, ON
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176,978
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Timiskaming Square
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New Liskeard, ON
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158,793
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Northumberland Square
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Miramichi, NB
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158,454
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"We are very pleased to enter into this venture with Plaza who has an excellent reputation for redeveloping centres in central
and eastern Canada, which will allow RioCan to focus on its own development strategy of urban
intensification in Canada's six major markets" said Edward
Sonshine, CEO of RioCan.
"We are excited to have an opportunity to work with RioCan to redevelop these three properties. These redevelopments will
unlock long-term value for our respective unitholders by creating stronger and more stable retail properties in these markets"
stated Michael Zakuta, President & CEO of Plaza.
About RioCan
RioCan is Canada's largest real estate investment trust with a total enterprise value of
approximately $16 billion as at March 31, 2016. RioCan owns and manages
Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 303
Canadian retail and mixed use properties, including 16 properties under development, containing an aggregate net leasable area of
46 million square feet. For further information, please refer to RioCan's website at www.riocan.com.
About Plaza
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in
Eastern Canada. Plaza's current portfolio includes interests in 300 properties totaling approximately 7.1 million square feet
across Canada and additional lands held for development. Plaza's properties include a mix of
strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 91% national
tenants. For further information, please refer to Plaza's website at www.plaza.ca.
Forward-Looking Statements
This news release contains forward looking statements within the meaning of applicable securities laws, which are based on
expectations, estimates, forecasts and projections. These statements are not future guarantees of future performance and
involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ
materially from those expressed in these forward looking statements. Readers, therefore, should not place undue reliance on
any such forward looking statements. Further, a forward looking statement speaks only as of the date on which such statement
is made. Neither RioCan nor Plaza undertake any obligation to publicly update any such statement, to reflect new information
or the occurrence of future events or circumstances, except for forward-looking information disclosed in prior disclosures which,
in light of intervening events, requires further explanation to avoid being misleading.
SOURCE Plaza Retail REIT