BentallGreenOak and RioCan REIT announced they have expanded their strategic partnership with a new joint venture in a three-property portfolio based in Thornhill, Ontario. Comprised of a multifamily rental property (“Pivot”) and two grocery-anchored retail assets, the total sale price of $151.2 million represents a blended cap rate of 4.1 per cent based on in-place, net operating income (“NOI”) for the income-producing retail properties, and stabilized NOI for the residential property.
The joint venture was attained using new investment capital from BentallGreenOak client Sun Life Assurance Company of Canada, and the transaction is expected to close in the third quarter of 2021, subject to customary closing conditions.
“Through our relationship with BentallGreenOak, we are delighted to strengthen our partnership with Sun Life, particularly at this juncture as we accelerate our growth trajectory while market activity rebounds,” said Jonathan Gitlin, President and Chief Executive Officer of RioCan. “The quality of our assets and our established management expertise have laid a strong foundation for our partnership with BentallGreenOak to thrive. We will continue to capitalize on new opportunities as they arise to attract institutional investment and monetize the value that we have created in our portfolio. RioCan’s capital recycling activity provides an extremely effective source of capital to fund value creation initiatives, including future mixed-used developments that generate additional fee income and fortify our balance sheet to set us up for sustainable growth.”
“BentallGreenOak, on behalf of Sun Life, is pleased to have creatively structured a complimentary portfolio deal, in two highly-favoured asset classes, with a likeminded and highly-respected investment manager like RioCan, where outstanding growth, income generation, and sustainable investment performance will be the common pursuit of our partnership,” said Christina Iacoucci, Managing Partner and Canadian Chief Investment Officer for BentallGreenOak. “We are leveraging the strength of our relationships to immediately add high-quality multifamily rental stock in a top market, and two well-positioned, needs-based retail assets to our portfolio, to deliver valuable income-producing assets that are rare finds in today’s real estate market.”
About Pivot
Pivot is RioCan Living’s newly constructed 36-storey residential tower, which is connected to the redeveloped Yonge Sheppard Centre. Featuring 237,000 square feet of retail and 395,000 square feet of office space, residents can shop and work in one well-constructed development. Retail and food service offerings include Longo’s, Winners, and Shoppers Drug Mart.
Pivot commenced leasing in December 2020 and is currently around 45 per cent occupied.
Read the official release here: RioCan and BentallGreenOak expand on strategic partnership with agreement to co-invest in a GTA-based portfolio
