Provides Update on Property Transactions Activity
TORONTO, Sept. 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 recent property transaction activity.
Acquisition in Griffintown, Montreal
The Company completed the first purchase in a two-step initial acquisition of newly developed mixed-use, retail and office assets in the heart of downtown Montreal's revitalized Griffintown neighbourhood. Including its future second step, the transaction entails the acquisition from prominent Montreal developer, Devimco, of two properties comprising a total of approximately 236,000 square feet (157,000 square feet of retail with 79,000 square feet of office) and 255 underground parking spaces, for an aggregate purchase price of approximately $102.2 million. The purchase price of $42.0 million payable on closing of the first purchase was satisfied in cash. The second step acquisition is under a binding purchase agreement and is expected to be completed in just over two years. The transaction also includes rights to purchase additional retail properties in the neighbourhood. With the completion of the second step acquisition, the Company's Griffintown assets will include a national supermarket, banks, restaurants, coffee shops and other tenants typically found in First Capital Realty's portfolio. The second step acquisition closing is subject to customary closing conditions.
The revitalization of Griffintown is transforming this once industrial, vacant area into a vibrant, young family oriented, live, work, play neighbourhood located on the edge of the Lachine Canal, just minutes from Old Montreal and the downtown core of the city. Accordingly, the area is planned to include parks, playgrounds, bicycle paths and substantial future residential development. Moreover, the city's overall plan for the Griffintown neighbourhood includes the preservation of the historical significance of some century-old buildings, in harmony with the newer, cutting edge buildings being constructed. First Capital Realty expects that its existing and future Griffintown assets will become the heart of their hip new urban community, similar to a number of other comparable properties acquired or developed by the Company over the last decade.
"We are very excited to establish First Capital Realty as the leading retail landlord for years to come in Montreal's fast-growing Griffintown neighbourhood," said Gregory Menzies, First Capital Realty's Executive Vice President, Eastern Canada. "We look forward to completing the second step of our initial acquisition, to the potential of completing additional retail property purchases and to providing this urban community with an attractive mix of retail tenants to serve its needs."
Acquisitions in Yorkville, Toronto
The Company completed the acquisition of two additional properties totalling 25,000 square feet of gross leasable area adjacent to First Capital Realty's existing retail and commercial mixed use assets centrally located in Toronto's Bloor/Yorkville area, Canada's premier shopping district and one of Canada's most affluent neighbourhoods. The aggregate purchase price of approximately $23 million including closing costs was satisfied in cash.
First Capital Realty's Yorkville assets are anchored by Hazelton Lanes Shopping Centre, which is presently undergoing a complete renovation, including the creation of additional space and an attractive new façade that will open up the shopping centre's street-facing tenants to Avenue Road, a major arterial road in the City of Toronto. In addition to the Company's 211,000 square foot Hazelton Lanes Shopping Centre with 515 underground parking spaces, First Capital Realty's Yorkville portfolio now includes a further 62,000 square feet of mixed use streetfront retail and commercial space, as well as an investment in 77 hotel suites and related retail and parking.
Dispositions in Advanced Negotiations
The Company is in advanced negotiations for dispositions of a number of properties collectively valued at more than $100 million. Assuming the successful completion of negotiations in these separate transactions, these dispositions are expected to close by the end of 2014.
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 164 properties totalling approximately 24.6 million square feet of gross leasable area.
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 Kay Brekken, 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