East Village Developers Partner on $300 Million Multi-Family Project
RioCan confirms Loblaws Market as first retail tenant and announces partnership with Embassy BOSA to bring more multi-family development to community
RioCan Investment Trust is proud to announce today a new partnership with Embassy BOSA for the East Village neighbourhood. The partnership brings the redevelopment program of Calgary’s oldest community, East Village, one step closer to realizing its master plan vision, building an additional $300 million in development and approximately 500 new condominiums.
“This new investment is a powerful testament to the momentum we’ve created here in East Village,” says Michael Brown, president and CEO, Calgary Municipal Land Corporation. “We have now attracted more than $2.2 billion of investment to the neighbourhood, and over 80% of our land inventory is now committed. To have two of Canada’s strongest developers teaming up in East Village is impressive. Next year, some of the residential and retail space currently in development will be complete – including two condominium towers and the retail space in the Simmons Building.”
This new investment by Embassy BOSA brings the total number of committed units in the East Village to 1,100. In October 2010, Embassy BOSA committed to delivering approximately $325 million of mixed-use, multi-family residential development including over 600 new residential units to the neighbourhood in the first major land development deal in East Village in more than a decade.
“Calgary is on the tipping point right now, with condo living becoming a more sought after alternative to suburban life,” said Ryan Bosa, president of Embassy BOSA. “The future of Calgary is up not out, and developments like the East Village showcase how Calgary is creating vibrant, sustainable communities.”
Stuart Craig, RioCan’s vice president – Planning & Development, also confirmed the site will be home to a new Loblaws Market. “Loblaw Companies Limited is now a confirmed tenant at our new retail development at 6th Avenue and 3rd Street SE. We are currently developing plans for this new urban Loblaws store. We’re excited about this opportunity in Calgary’s downtown core and will share more information as it becomes available.”
Construction of the RioCan/Embassy BOSA project will proceed in two phases. The first, expected to take nearly three years from the start of construction, will include a ‘retail podium’ with approximately 200,000 square feet of retail space and a 40-storey residential tower. Construction of the second phase – a 23-storey residential tower – is expected to take an additional 12 months.
The sculptural concept for the towers envisions sheets, or planes of glass, layered to open up to the fantastic city and Bow River views. An abundance of angles have been introduced to maximize sunlight exposure. The glass facade extends beyond the building to create ‘free-floating’ fins and allow the planes of glass to be uninterrupted to the roof. The planes of glass on each facade soar above the main roof to lighten the form. A rotating balcony that creates a dynamic diagonal line is a signature design element.
Together, RioCan and Embassy BOSA expect to receive a development permit in late spring 2015 and begin construction next summer.
Imagined as a mixed-use, amenity-rich master-planned neighbourhood in the downtown core, East Village will be home to more than 11,000 residents upon completion in 2027. With local amenities like RiverWalk, St. Patrick’s Island Park, the New Central Library, National Music Centre and an urban shopping centre, East Village has become a highly desirable neighbourhood in Calgary’s downtown core.
For more information about the East Village project, visit us at www.calgarymlc.ca.
Forward Looking Advisory
This News Release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release concerning RioCan's, intention to complete the development of the site referred to as the RioCan/Embassy Bosa project, as well as other statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events.
These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan’s current estimates and assumptions, which are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in RioCan’s Management’s Discussion and Analysis for the period ended June 30, 2014 and in RioCan’s annual information form dated March 31, 2014, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace associated with economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, development projects, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the investment in the United States of America ("US"), fluctuations in the currency exchange rate between the Canadian and US dollar and RioCan's qualification as a real estate investment trust for tax purposes. 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 in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; and the availability of purchase opportunities for growth in Canada and the US. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.
The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the “SIFT Provisions”). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust (“REIT”). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.
Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.