SmartCentres Real Estate Investment Trust Announces $513 Million Strategic Acquisition of Two-Thirds Interest in 53 Acres in SmartVMC
December 30, 2021 at 08:59 pm EST
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SmartCentres Real Estate Investment Trust announced $513 million strategic acquisition of a two-thirds interest in 53 acres (acquired lands), in SmartVMC, the 100+ acre master-planned City Centre in the Vaughan Metropolitan Centre. This more than doubles the company?s interest in SmartVMC, uniting ownership across the property and making the company the large landowner in Vaughan?s dynamic TTC subway-connected Downtown. The acquired lands have in-place Permissions for multi-residential, condominium, seniors? residences, office, retail, recreational, entertainment, and other uses, aligned with the company?s transformation strategy. Goldhar?s Penguin Group of Companies owns the remaining 33.33% of acquired lands, therefore extending the successful SmartCentres/Penguin partnership to now own the entire 105-acre SmartVMC City Centre, on which 21 million square feet is envisioned. Approximately 11 acres of the acquired lands are currently occupied by various retailers, including a 146,000 square foot Lowe?s Home Improvement store and several quick service restaurants, providing strong holding income. Merging these two parcels of land under common ownership enables the unleashing of creativity and maximizing of synergies, such as environmental sustainability, open space connectivity, renewable energy, and recycling management. The company intends to fund the acquisition through: the issuance of approximately $200 million in subsidiary SmartCentres REIT Limited Partnership Units, to be issued at $34.50 per unit, and exchangeable into SmartCentres REIT Units on a one-for-one basis (subject to TSX approval), and approximately $313 million from debt facilities and cash on hand.
SmartCentres Real Estate Investment Trust (the Trust) is a Canada-based fully integrated real estate investment trust. The Trust develops, leases, constructs, owns and manages shopping centers, office buildings, high-rise and low-rise condominiums and rental residences, seniorsâ housing, townhome units, self-storage rental facilities, and industrial facilities in Canada. It is focused on development, ownership, management and operation of investment properties located in Canada. The Trust portfolio features approximately 191 strategically located properties in communities across the country. The Trustâs subsidiaries include Smart Limited Partnership, Smart Limited Partnership II, Smart Limited Partnership III, Smart Limited Partnership IV, Smart Oshawa South Limited Partnership, Smart Oshawa Taunton Limited Partnership, Smart Boxgrove Limited Partnership, ONR Limited Partnership, ONR Limited Partnership I, and SmartVMC West Limited Partnership.