Multi-million transaction involves high-rise multi-residential tower and several retail assets
RioCan Real Estate Investment Trust and investment management advisor BentallGreenOak have announced the expansion of their strategic partnership, with a new joint venture in a three-property portfolio situated in the Greater Toronto Area.
“An agreement signed by both firms would position new investment capital from BentallGreenOak client, Sun Life Assurance Company of Canada, to assume a 50% non-managing interest in the portfolio owned and managed by RioCan,” the companies said in their joint announcement. “Under the terms of the agreement, the total sale price of $151.2 million represents a blended cap rate of 4.1% based on in-place, net operating income for the income-producing retail properties, and stabilized NOI for the residential property which is currently in lease-up.”
The portfolio is comprised of RioCan Living’s newly constructed 361-unit, 36-storey residential tower Pivot and two grocery-anchored retail properties, RioCentre Oakville and Spring Farm Marketplace in Thornhill, ON.
“The partnership between both leading Canadian commercial real estate investment managers expands on the success of their pre-existing relationship to deliver new growth and investment opportunities for both firms,” the companies said.
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“Through our relationship with BentallGreenOak, we are delighted to strengthen our partnership with Sun Life, particularly at this juncture as we accelerate our growth trajectory while market activity rebounds,” said Jonathan Gitlin, president and chief executive officer of RioCan. “The quality of our assets and our established management expertise have laid a strong foundation for our partnership with BentallGreenOak to thrive.”
“We will continue to capitalize on new opportunities as they arise to attract institutional investment and monetize the value that we have created in our portfolio,” Gitlin added.
The transaction is expected to close during the third quarter of 2021.
