RioCan and Plaza Retail REIT to Redevelop Three Properties
FREDERICTON – RioCan Real Estate Investment Trust and Fredericton-based Plaza Retail REIT announced Thursday that they have entered into a 50/50 joint venture to redevelop three properties, including one in New Brunswick.
The properties are currently owned by RioCan. Under the terms of the arrangement, Plaza will manage the three assets and oversee redevelopment efforts for the joint venture. RioCan sold a 50% managing interest in the three properties, at an aggregate sale price of $11.5 million, which were sold free and clear of financing.
“We are very pleased to enter into this venture with Plaza who has an excellent reputation for redeveloping centres in central and eastern Canada, which will allow RioCan to focus on its own development strategy of urban intensification in Canada’s six major markets” said Edward Sonshine, CEO of RioCan, in a release.
The three properties are Northumberland Square in Miramichi, Timiskaming Square in New Liskeard, ONT and East Court Mall in Cornwall, ONT.
“We are excited to have an opportunity to work with RioCan to redevelop these three properties. These redevelopments will unlock long-term value for our respective unit-holders by creating stronger and more stable retail properties in these markets” said Plaza president & CEO Michael Zakuta.