RioCan Real Estate Investment Trust (REIT) has completed the purchase of a 50 per cent interest in Burlington Mall in Burlington, Ont., and a 100 per cent interest in Oakville Place in Oakville, Ont., from Primaris Retail REIT.
RioCan’s purchase of Burlington Mall was completed on a joint venture basis with KingSett Canadian Real Estate Income Fund.
RioCan has also purchased a 100 per cent interest in South Cambridge Centre in Cambridge, Ont., from H&R REIT.
The aggregate gross purchase price for these three properties is approximately $397 million.
These properties add to RioCan’s growing enclosed mall portfolio that includes such properties as Georgian Mall, RioCan Yonge Eglinton Centre, RioCan Sheppard Centre, Lawrence Square and Shoppers World Brampton – all located in the GTA and surrounding markets.
“We are pleased to complete these acquisitions that strengthen RioCan’s portfolio of enclosed malls, and will reinforce our competitive position in the GTA, Canada’s largest market,” says Edward Sonshine, CEO of RioCan. “RioCan’s growing enclosed mall platform with its strong fashion component will further support RioCan’s relationships with its growing North American tenant base.”
Oakville Place is located directly off the Queen Elizabeth Way (QEW), a major highway running through Ontario’s Golden Horseshoe. Oakville Place is a fashion focused, two level regional mall containing approximately 455,000 square feet of gross leasable area. The property was built in 1981, and underwent significant renovations in 2004 and 2008. Oakville Place is 100 per cent occupied and is anchored by The Bay and Sears. As of Sept. 30, 2012, the property’s commercial retail units (CRU) generated average sales of $493 per square foot. Approximately 94 per cent of the gross rent is generated by national and regional tenants. RioCan purchased the property for $259 million.
Located near the QEW at Guelph Line and Fairview Street, Burlington Mall is a 782,000-square-foot enclosed mall. It was constructed in 1968, and underwent significant renovations in 2001, 2004 and 2006. The property is 99 per cent occupied and is anchored by Target, Canadian Tire and Winners/HomeSense. As of Sept. 30, 2012, the property’s CRU generated average sales of approximately $386 per square foot. Approximately 87 per cent of the gross rent is generated by national and regional tenants. The purchase price for the property was $206 million. RioCan will provide asset and property management functions for the property.
South Cambridge Centre is a 190,131-square-foot shopping centre. The property is 100 per cent occupied and is anchored by a Zehrs grocery store, which is a part of the Loblaw Companies Ltd. RioCan purchased the property for $35 million.
