RioCan Real Estate Investment Trust Completes Acquisition Of Interest In Festival Hall.
TORONTO--(BUSINESS WIRE)--Oct. 14, 1999--
RioCan Real Estate Investment Trust RioCan Real Estate Investment Trust (TSX: REI.UN) is the largest real estate investment trust (REIT) in Canada with ownership interests in over 200 retail properties. (TSE See Tokyo Stock Exchange.
1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). :REI.UN.)today announced that it has completed the acquisition of a 50% interest in the Festival Hall Retail & Entertainment Complex ("Festival Hall"). Located in Toronto's downtown west district, Festival Hall is situated at the intersection of Richmond and John Streets and comprises a 227,000 square foot urban retail and entertainment destination.
Festival Hall's largest tenant is a state-of-the-art Famous Players movie theatre consisting of fourteen screens, stadium seating and is at the forefront of movie exhibition technological advances. The Famous Players theatre also houses an IMAX IMAX
a film projection process that produces an image ten times larger than standard 3D theatre, which is the first in Canada to be included within a larger movie exhibition complex.
Festival Hall is also the home of the first downtown location for a 52,000 square foot Sega/Playdium, opening November 12, 1999. This location will be Sega/Playdium's most advanced facility in Canada, which includes a variety of high tech sport simulators and amusement facilities. Other tenants include Chapters, Cyberplex, a leading North American North American
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Edward Sonshine, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of RioCan, said: "We are very excited to have acquired what is one of Toronto's premier urban entertainment destinations. This $70 million development dominates Toronto's downtown west district and, as such, represents a continuation of one component of RioCan's growth strategy, that of investing in entertainment-anchored, urban retail real estate. We are also very pleased that our financing strategy for this property has worked out so well. By using a conservative hedging strategy, we locked in a $46 million, 10 year mortgage for the building from a foreign lender at an effective interest rate of approximately 6.3%, which is well below rates available today. The result will be a return on equity in excess of 12% initially with strong growth due to contractual rent increases."
RioCan is by far Canada's largest real estate investment trust. RioCan has total assets of over $2 billion consisting of ownership interests in a portfolio of 127 mostly retail properties across Canada containing an aggregate of approximately 18.4 million square feet of gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. . RioCan's primary objective is the long-term maximization of cash flow and capital appreciation of its portfolio. It achieves this by proactively managing its existing properties, seeking accretive acquisition Accretive Acquisition
An acquisition that will increase the acquiring company's EPS.
As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. and expansion opportunities and undertaking development activities on a selective basis. RioCan is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE)
Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol REI.UN.