SmartCentres Announces Closing of Acquisition of SmartVMC City Centre Lands, Becomes Largest Landowner in the Vaughan Metropolitan Centre
23 Dezember 2021 - 01:23AM
SmartCentres Real Estate Investment Trust (“SmartCentres” or the
“REIT”) (TSX:SRU.UN), announced today that it has now closed the
previously announced $513 million strategic acquisition of a
two-thirds interest in 53 acres, in ‘SmartVMC’, the 100+ acre
master-planned City Centre in the Vaughan Metropolitan Centre.
This acquisition more than doubles SmartCentres’
holdings in SmartVMC, consolidating ownership of the full 105-acre,
20 million square foot development property under SmartCentres and
The Penguin Group of Companies. By virtue of this transaction,
SmartCentres has become the largest landowner in Vaughan’s rapidly
growing Downtown.
SmartCentres is building a modern world-class
City Centre, directly connected to downtown Toronto via the TTC’s
Vaughan Metropolitan Centre Subway Station, located at the centre
of the property. Existing permissions on the property include
multi-residential, condominium, seniors’ residences, office,
retail, schools, recreational, entertainment and other
uses. SmartLiving, SmartCentres’ wholly owned in-house
residential development platform, is actively developing thousands
of residential units at SmartVMC.
The TSX has approved the issuance
of $200 million in SmartCentres REIT Limited
Partnership Units to the sellers at $34.50 per unit,
exchangeable into SmartCentres REIT Units on a one-for-one
basis. “Funding a significant portion of this
transaction through equity at $34.50 reinforces the strength
of our existing portfolio,” said Mitchell Goldhar, Executive
Chairman and CEO of SmartCentres. “This strategic acquisition
ensures built-in accretive residential income for the REIT for many
years to come and materially accelerates SmartCentres’
transformation to a Diversified REIT.”
The balance of funding is being financed from
SmartCentres’ existing credit facilities.
About SmartCentres
SmartCentres Real Estate Investment Trust is one
of Canada’s largest fully integrated REITs, with a best-in-class
portfolio featuring 168 strategically located properties in
communities across the country. As of September 30, 2021,
SmartCentres had approximately $10.2 billion in assets and owned
33.9 million square feet of income producing value-oriented retail
space with 97.6% occupancy, on 3,500 acres of owned land across
Canada.
SmartCentres continues to focus on enhancing the
lives of Canadians by planning and developing complete, connected,
mixed-use communities on its existing retail properties. Project
512, a publicly announced $14.5 billion intensification program
($8.6 billion at SmartCentres' share) represents the REIT’s current
major development focus on which construction is expected to
commence within the next five years. This intensification program
consists of rental apartments, condos, seniors’ residences and
hotels, to be developed under the SmartLiving banner, and retail,
office, and storage facilities, to be developed under the
SmartCentres banner.
SmartCentres' intensification program is
expected to produce an additional 58.3 million square feet (34.5
million square feet at SmartCentres’ share) of space, 28.8 million
square feet (17.1 million square feet at SmartCentres’ share) of
which has or will commence construction within the next five years.
From shopping centres to city centres, SmartCentres is uniquely
positioned to reshape the Canadian urban and urban-suburban
landscape.
Certain statements in this Press Release are
"forward-looking statements" that reflect management's expectations
regarding the Trust's future growth, results of operations,
performance and business prospects and opportunities. More
specifically, certain statements including, but not limited to,
statements related to SmartCentres’ expected or planned development
plans and joint venture projects, including the described type,
scope, costs and other financial metrics, expectations surrounding
the closing of the acquisition including purchase price and
anticipated funding of the purchase price and statements that
contain words such as "could", "should", "can", "anticipate",
"expect", "believe", "will", "may" and similar expressions and
statements relating to matters that are not historical facts,
constitute "forward-looking statements". These forward-looking
statements are presented for the purpose of assisting the Trust's
Unitholders and financial analysts in understanding the Trust's
operating environment, and may not be appropriate for other
purposes. Such forward-looking statements reflect management's
current beliefs and are based on information currently available to
management.
However, such forward-looking statements involve
significant risks and uncertainties. A number of factors could
cause actual results to differ materially from the results
discussed in the forward-looking statements, including risks
associated with potential acquisitions not being completed or not
being completed on the contemplated terms, public health crises
such as the COVID-19 pandemic, real property ownership and
development, debt and equity financing for development, interest
and financing costs, construction and development risks, ability to
obtain commercial and municipal consents for development. These
risks and others are more fully discussed under the heading “Risks
and Uncertainties” and elsewhere in the SmartCentres’ most recent
Management’s Discussion and Analysis, as well as under the heading
“Risk Factors” in SmartCentres’ most recent annual information
form. Although the forward-looking statements contained in this
press release are based on what management believes to be
reasonable assumptions, SmartCentres cannot assure investors that
actual results will be consistent with these forward-looking
statements. The forward-looking statements contained herein are
expressly qualified in their entirety by this cautionary statement.
These forward-looking statements are made as at the date of this
Press Release and SmartCentres assumes no obligation to update or
revise them to reflect new events or circumstances unless otherwise
required by applicable securities legislation.
Material factors or assumptions that were
applied in drawing a conclusion or making an estimate set out in
the forward-looking information may include, but are not limited
to: a stable retail environment; relatively low and stable interest
costs; a continuing trend toward land use intensification,
including residential development in urban markets and continued
growth along transportation nodes; access to equity and debt
capital markets to fund, at acceptable costs, future capital
requirements and to enable our refinancing of debts as they mature;
that requisite consents for development will be obtained in the
ordinary course, construction and permitting costs consistent with
the past year and recent inflation trends.
For more information, visit www.smartcentres.com
or please contact:
Mitchell Goldhar |
|
Peter Sweeney |
Executive Chairman and CEO |
|
Chief Financial Officer |
SmartCentres |
|
SmartCentres |
(905) 326-6400 ext. 7674
|
|
(905) 326-6400 ext. 7865 |
mgoldhar@smartcentres.com |
|
psweeney@smartcentres.com |
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