Provides Update on Property Transactions Activity
Toronto, Ontario (September 2, 2014) – First Capital Realty Inc. (“First Capital Realty” or the“Company”) (TSX: FCR), Canada’s leading owner, developer and manager of well-located, highquality, urban retail-centred properties, provided today an update on recent property transactionactivity.
Acquisition in Griffintown, Montreal
The Company completed the first purchase in a two-step initial acquisition of newly developedmixed-use, retail and office assets in the heart of downtown Montreal’s revitalized Griffintownneighbourhood. Including its future second step, the transaction entails the acquisition fromprominent Montreal developer, Devimco, of two properties comprising a total of approximately236,000 square feet (157,000 square feet of retail with 79,000 square feet of office) and 255underground parking spaces, for an aggregate purchase price of approximately $102.2 million. Thepurchase price of $42.0 million payable on closing of the first purchase was satisfied in cash. Thesecond step acquisition is under a binding purchase agreement and is expected to be completed injust over two years. The transaction also includes rights to purchase additional retail properties inthe neighbourhood. With the completion of the second step acquisition, the Company’s Griffintownassets will include a national supermarket, banks, restaurants, coffee shops and other tenantstypically found in First Capital Realty’s portfolio. The second step acquisition closing is subject tocustomary closing conditions.
The revitalization of Griffintown is transforming this once industrial, vacant area into a vibrant,young family oriented, live, work, play neighbourhood located on the edge of the Lachine Canal,just minutes from Old Montreal and the downtown core of the city. Accordingly, the area is plannedto include parks, playgrounds, bicycle paths and substantial future residential development.Moreover, the city’s overall plan for the Griffintown neighbourhood includes the preservation of thehistorical significance of some century-old buildings, in harmony with the newer, cutting edgebuildings being constructed. First Capital Realty expects that its existing and future Griffintownassets will become the heart of their hip new urban community, similar to a number of othercomparable properties acquired or developed by the Company over the last decade.
“We are very excited to establish First Capital Realty as the leading retail landlord for years to comein Montreal’s fast-growing Griffintown neighbourhood,” said Gregory Menzies, First CapitalRealty’s Executive Vice President, Eastern Canada. “We look forward to completing the secondstep of our initial acquisition, to the potential of completing additional retail property purchases andto providing this urban community with an attractive mix of retail tenants to serve its needs.”
Acquisitions in Yorkville, Toronto
The Company completed the acquisition of two additional properties totalling 25,000 square feet ofgross leasable area adjacent to First Capital Realty’s existing retail and commercial mixed useassets centrally located in Toronto’s Bloor/Yorkville area, Canada’s premier shopping district andone of Canada’s most affluent neighbourhoods. The aggregate purchase price of approximately $23million including closing costs was satisfied in cash.
First Capital Realty’s Yorkville assets are anchored by Hazelton Lanes Shopping Centre, which ispresently undergoing a complete renovation, including the creation of additional space and anattractive new façade that will open up the shopping centre’s street-facing tenants to Avenue Road,a major arterial road in the City of Toronto. In addition to the Company’s 211,000 square footHazelton Lanes Shopping Centre with 515 underground parking spaces, First Capital Realty’sYorkville portfolio now includes a further 62,000 square feet of mixed use streetfront retail andcommercial space, as well as an investment in 77 hotel suites and related retail and parking.
Dispositions in Advanced Negotiations
The Company is in advanced negotiations for dispositions of a number of properties collectivelyvalued at more than $100 million. Assuming the successful completion of negotiations in theseseparate transactions, these dispositions are expected to close by the end of 2014.
ABOUT FIRST CAPITAL REALTY (TSX:FCR)
First Capital Realty is Canada's leading owner, developer and manager of well-located, high qualityurban retail-centred properties where people live and shop for everyday life. The Companycurrently owns interests in 164 properties totalling approximately 24.6 million square feet of grossleasable area.
This press release contains forward-looking statements and information within the meaning of applicablesecurities law. Forward-looking statements can be identified by the expressions “expects”, “believes”,“estimates”, “will”, “projected” and similar expressions. The forward-looking statements are not historicalfacts but reflect the Company’s current expectations regarding future results or events and are based oninformation currently available to Management. Certain material factors and assumptions were applied inproviding these forward-looking statements.
Management believes that the expectations reflected in forward-looking statements are based uponreasonable assumptions; however, Management can give no assurance that the actual results ordevelopments will be consistent with these forward-looking statements. These forward-looking statementsare subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under “Risks and Uncertainties” inFirst Capital Realty’s Management’s Discussion and Analysis for the year ended December 31, 2013 andunder “Risk Factors” in its current Annual Information Form. Readers, therefore, should not place unduereliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of thedate on which such statement is made. First Capital Realty undertakes no obligation to publicly update anysuch statement or to reflect new information or the occurrence of future events or circumstances except asrequired by applicable securities law.
All forward-looking statements in this press release are made as of the date hereof and are qualified by thesecautionary statements.
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For further information:
Dori J. Segal, President & CEO, or
Kay Brekken, Executive Vice President & CFO
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114
Fax: (416) 941-1655