First Capital Realty provides update on recent property transactions and financing activity

TORONTO, July 2, 2014 /CNW/ - First Capital Realty Inc. ("First Capital Realty" or the "Company") (TSX: FCR), Canada's leading owner, developer and manager of well-located, high quality, urban retail-centred properties, provided today an update on its property transactions and financing activity during the quarter ended June 30, 2014. The Company announced that, during the period, it completed or committed to complete approximately $89 million of property transactions and it extended the maturity, reduced the pricing and increased to $700 million its senior unsecured revolving credit facility.

Property Transactions

On May 12, 2014, First Capital Realty closed the sale of a 10.8-acre land parcel, located in Brampton, Ontario, for gross proceeds of $8.3 million, which was satisfied in cash.

On June 15, 2014, the Company entered into a binding agreement to acquire a 50% interest in Shops of Oakville South, a 99,000 square foot newly developed shopping centre on 9.4 acres of land (including some retail expansion area) in Oakville, Ontario. Major tenants include Longo's (supermarket), Harpers Landing (restaurant), Kids & Company (daycare) and Bank of Montreal. The property is being acquired in a 50/50 co-ownership with one of the existing owners of the property that is increasing its interest as part of the transaction. First Capital Realty will be the exclusive asset and property manager. The purchase price of approximately $26.5 million (at the Company's 50% interest, excluding closing costs), is expected to be satisfied by a combination of cash and fixed-rate 10-year debt. The acquisition is subject to customary closing conditions and is expected to close in the third quarter.

On June 24, 2014, the Company closed the sale of a 12.5-acre land parcel, located in north Oakville, Ontario, for gross proceeds of $9.0 million, which was satisfied in cash.

On June 26, 2014, First Capital Realty closed the sale of Longwood Station, a 106,000 square foot shopping centre located in Nanaimo, British Columbia, for gross proceeds of $33.1 million, which was satisfied in cash.

During the quarter, First Capital Realty also completed or entered into binding agreements to complete:

  • The acquisition of a total of approximately 2.5 acres of land for future development adjacent to existing properties as well as two additional adjacent properties, for an aggregate purchase price of $7.3 million; and

  • The sale of two adjacent land parcels comprising 16.1 acres, the majority of which is not for retail use, for aggregate gross proceeds of $4.3 million.

Binding transactions included above are subject to customary closing conditions and are expected to close in the third quarter.

Financing Activity

On June 13, 2014, First Capital Realty extended the maturity, reduced the pricing and increased to $700 million (from $600 million) its senior unsecured revolving credit facility with its syndicate of lenders comprised of Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Montreal, National Bank of Canada, Alberta Treasury Branches, Wells Fargo Bank, N.A., Bank of Nova Scotia and Caisse Centrale Desjardins.  The facility will mature on June 30, 2017.

On June 17, 2014, the Company issued $150 million aggregate principal amount of Series S senior unsecured debentures with a coupon interest rate of 4.323% per annum, maturing July 31, 2025. Following the offering, the Company announced its intention to redeem on July 14, 2014 $50 million principal amount of its 5.32% Series F senior unsecured debentures due October 30, 2014. The record date for this partial redemption is close of business on July 9, 2014.

"The second quarter was exactly in-line with our stated strategy of continuing to recycle capital to major urban developments and properties in our core trade areas while extending our debt maturities and increasing our liquidity", said Dori J. Segal, President and CEO of First Capital Realty.

ABOUT FIRST CAPITAL REALTY (TSX:FCR)

First Capital Realty is Canada's leading owner, developer and manager of well-located, high quality urban retail-centred properties where people live and shop for everyday life.  The Company currently owns interests in 163 properties, including four under ground-up development, totalling approximately 24.4 million square feet of gross leasable area and one site in the planning stage for future retail development.

Forward-Looking Statements

This press release contains forward-looking statements and information within the meaning of applicable securities law. Forward-looking statements can be identified by the expressions "expects", "believes", "estimates", "will", "projected" and similar expressions. The forward-looking statements are not historical facts but reflect the Company's current expectations regarding future results or events and are based on information currently available to Management. Certain material factors and assumptions were applied in providing these forward-looking statements.

Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that the actual results or developments will be consistent with these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in First Capital Realty's Management's Discussion and Analysis for the year ended December 31, 2013 and under "Risk Factors" in its current Annual Information Form. 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. First Capital Realty undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities law.

All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements.

SOURCE First Capital Realty Inc.

For further information: Dori J. Segal, President & CEO, or Karen H. Weaver, Executive Vice President & CFO, First Capital Realty Inc., 85 Hanna Avenue, Suite 400, Toronto, Ontario, Canada M6K 3S3, Tel: (416) 504-4114, Fax: (416) 941-1655, www.firstcapitalrealty.ca, TSX:FCR