−An example of Plaza selling stabilized assets in order to recycle capital for more value-add projects−
FREDERICTON, May 2, 2019 /CNW/ - Plaza Retail REIT (TSX: PLZ.UN) ("Plaza") today announced that it has successfully completed the sale of eight single-tenant properties in four separate transactions for total consideration of $9,900,000. The fully-leased properties total 19,309 square feet and are located in Winnipeg, London, Ottawa and Halifax.
"We believe that we have extracted maximum value from these non-core single-tenant properties," said Michael Zakuta, President and CEO of Plaza. "The proceeds from these sales will be redeployed in future development and redevelopment projects that will generate yields well in excess of the transactions' combined capitalization rate and will ultimately create additional value for unitholders."
The combined capitalization rate for these transactions is 5.9%.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, focused on Ontario, Quebec and Atlantic Canada. Plaza's portfolio at December 31, 2018 includes interests in 287 properties totaling approximately 8.2 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.
Cautionary Statements regarding Forward-looking Information
This press release contains forward-looking statements with respect to Plaza and its operations, which can generally be identified by the use of forward-looking words such as "will" and other expressions or phrases that do not relate to historical facts. Forward looking statements in this press release include, but are not limited to, those which relate to future projects that will ultimately create additional value for unitholders. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release, including but not limited to general economic and market factors and those described in Plaza's Annual Information Form for the year ended December 31, 2018 and Management's Discussion and Analysis for the year ended December 31, 2018, which can both be obtained on SEDAR at www.sedar.com. Forward-looking statements are based on a number of expectations and assumptions made in light of management's experience and perceptions of historical trends and current conditions, including that the proceeds from the sales will be redeployed in future projects that will generate yields as anticipated. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. These cautionary statements qualify all forward-looking statements contained in this press release.
For more information, please visit www.plaza.ca or contact:
SOURCE Plaza Retail REIT
For further information: Michael Zakuta, President & Chief Executive Officer, Plaza Retail REIT, Tel: 514.457.7007; Kim Sharpe, Director of Business Development, Plaza Retail REIT, Tel: 506.476.4855