Lethbridge commercial real estate is attractive to many national and international clients. Just this week RIOCAN icreased its local portfolio by taking a stake in a North Lethbridge shopping center. Here is a copy of the news release from Canwest, it seemed to get good national publicity, but most of those in Lethbridge including those involved in Lethbridge real estate are unaware of the investment that is flowing into this community.
This is the place to buy and invest!
Here is the release:
TORONTO - RioCan Real Estate Investment Trust said on Tuesday that its share of a deal to purchase four new format retail shopping centres in Western Canada is $166 million.
Two properties will be purchased on a joint venture basis with the Canada Pension Plan Investment board and Sun Life Financial. The total value of the deal, which affects properties located in British Columbia and Alberta, will be approximately $280 million.
Three of the four properties are anchored by Walmart, which represents 54 per cent of the occupied space by gross leasable area and generates 34 per cent of the gross rental revenue. In addition, 86 per cent of the rental revenue for the portfolio is generated by national or anchor tenants.
The portfolio, which totals approximately 1.2 million square feet, is currently 98 per cent occupied.
"RioCan is excited to be able to acquire these very well anchored centres in excellent markets as well as expanding our relationship with Walmart, which will become RioCan's third-largest tenant upon the completion of this acquisition," said Edward Sonshine, president and CEO of RioCan, in a statement. "These four centres represent an excellent addition to RioCan's core portfolio and provide an opportunity to acquire a number of strategic assets while expanding our important relationships with CPPIB and Sun Life."
The properties are: Grandview Corners in Surrey, B.C.; Edmonton West Retail Centre; Lethbridge North Retail Centre in Lethbridge, Alta., Calgary East Retail Centre.
RioCan will complete the purchase of Grandview Corners in Surrey, B.C., and Edmonton West Retail Centre in Edmonton, on a joint venture basis with CPPIB and Sun Life respectively. In both cases, RioCan will act as property and asset manager.
Riocan said the overall weighted average cap rate for this portfolio of four new format retail properties is approximately 7.1 per cent. RioCan has arranged five year conventional first mortgage financing for three of the four properties in the amount of approximately $113 million, of which RioCan's share will be approximately $94.5 million at an interest rate expected to be approximately five per cent. The financing is expected to close shortly after the closing of the purchase of these four properties, expected before the end of the year.
Robert May is a Realtor, as well as the broker and owner of Rainbow Realty of Lethbridge Alberta . He is also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the Lethbridge real estate industry since 1993 and offers full Lethbridge real estate services to Lethbridge and surrounding area, as well as Lethbridge mortgage financing, mortgage refinancing , preapprovals, and Lethbridge loans financing to Lethbridge and Southern Alberta. He can be found online at this link: mortgage broker Lethbridge
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