RioCan Real Estate Investment Trust and Allied Properties REIT agreed to acquire Diamond Corp.'s 20% interest in the office and retail components of The Well joint venture development for approximately C$42 million.
The three companies jointly purchased the property in late 2012 and early 2013 for C$170 million with plans to redevelop it into a 3 million-square-foot mixed-use asset with office, retail and residential space. RioCan and Allied will each own an undivided 50% interest in the office and retail components upon the acquisition of the Diamond Corp. stake and will initiate construction and operation of the asset as equal partners, with RioCan managing the retail space and Allied the office component.
In 2016, the original joint-venture partners agreed to sell 1.43 million square feet of residential density to Tridel Builders Inc. and Woodbourne Canada Partners III (CA) LP for approximately C$180 million. The sale of the residential component is scheduled to close upon the necessary land severances being granted and upon completion of the underground parking structure and building podiums. RioCan will remain a 50% co-owner of one of the rental buildings representing approximately 400,000 square feet of residential rental density through a separate joint venture with Woodbourne. This is expected to occur in 2020.
Separately, RioCan announced that it, along with its co-owner Hudson Bay Co., secured a surrender agreement with Sears Canada Inc. for the Sears location at RioCan Oakville Place in Oakville, Ontario, for a lease surrender fee of C$4 million. The companies plan on re-leasing the space to other tenants and expect "significantly more" rental income once the leases are in place.
In addition, RioCan and Bayfield Realty Advisors entered into an agreement to purchase the freehold interest in the Sears location at Garden City Shopping Centre in Winnipeg, Manitoba, for C$8 million.