Plaza Retail REIT Announces 8 Projects for Total Capital Cost of $13.1 Million - Oct 2, 2017

Plaza Retail REIT Announces 8 Projects for Total Capital Cost of $13.1 Million

Oct 2, 2017

FREDERICTON, Oct. 2, 2017 /CNW/ - Plaza Retail REIT (PLZ.UN: TSX) ("Plaza" or the "REIT") today announced eight projects in Atlantic Canada, Quebec and Ontario. Plaza has already invested approximately $7.8 million to date on these projects on land and other capital/construction costs, and expects to invest approximately $5.3 million more, for total capital costs of $13.1 million (at Plaza's ownership percentage). The projects are comprised of: (i) two newly acquired ground-up projects; (ii) three redevelopments of existing properties; and (iii) three expansions of existing properties. Plaza expects to add approximately 107,000 square feet to its portfolio (59,000 square feet at Plaza's ownership percentage) through these projects. Details on the projects are found in Appendix "A".

"We continue to grow and enhance our portfolio through high quality developments and re-developments that are leased to some of Canada's most prominent retailers. Our proven ability to develop new ground-up projects, as well as redevelop and expand newly acquired and existing assets, distinguishes Plaza from many other public real estate entities competing to acquire existing or finished properties," said Michael Zakuta, President and CEO. "Upon completion, these projects will increase our cash flows, building value for our unitholders."

About Plaza
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza's portfolio at June 30, 2017 includes interests in 296 properties totaling approximately 7.6 million square feet across Canada and additional lands held for development. Plaza's properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 91% national tenants. For more information, please visit www.plaza.ca.

Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will", "expects", "anticipates" or similar variations. Examples of such statements in this press release include those relating to future investments expected to be made in the projects identified, square footage expected to be added to Plaza's portfolio through such projects within anticipated timelines and benefits expected to result from the projects.  Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Plaza to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release, including general economic conditions, local market circumstances and construction or other unforeseeable delays. Such forward-looking statements are based on a number of expectations and assumptions, including that the future developments, redevelopments and expansions contemplated herein are completed. Although the forward-looking statements contained in this press release are based upon information currently available to management and what management believes are reasonable expectations and assumptions, there can be no assurances that forward-looking statements will prove to be accurate. Therefore, readers should not place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release and Plaza undertakes no obligation to update such statements, except as required by law. More detailed information about assumptions, risks and uncertainties that could affect Plaza is described in Plaza's Annual Information Form for the year ended December 31, 2016 and Management's Discussion and Analysis for the period ended June 30, 2017 which can be obtained on SEDAR at www.sedar.com. These cautionary statements qualify all forward-looking statements contained in this press release.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

 


Appendix A

Properties added to development/ redevelopment

 

Sq. Ft. Upon
Completion
or to be
Added Upon
Expansion(1)

Ownership
Interest

Occupied or
Committed to
Date

Anticipated
or Actual
Completion
Date






In Planning/In Development:





Strip Plaza:





Lawrence Avenue Plaza, Toronto, ON (2)

7,540

100%

84.5%

Q3 2018

Single Use:





6685 Century Avenue, Mississauga, ON

70,000

50%

100%

Q2 2019

1943 Baseline Road, Ottawa, ON (2)

1,590

100%

100%

Q1 2018

Expansion:





Bedford Commons Plaza, Bedford, NS (2)

3,500

100%

100%

Q3 2018






In Construction:





Strip Plaza:





100 Saint-Jude Nord, Granby, QC – Phase I (3)

14,258

8%

100%

Q3 2017

Single Use:





3000 Bd. St. Charles, Kirkland, QC (2)

2,554

100%

100%

Q1 2018

Expansion:





Welton Street Plaza, Sydney, NS (2)

3,850

100%

100%

Q3 2017

Powell Drive Plaza, Carbonear, NL (2)

4,000

100%

100%

Q3 2017






Total

107,292





(1) At 100% regardless of percentage ownership in the property.


(2) This is an existing property being redeveloped or expanded.


(3) This is owned in a limited partnership that is part of Plaza's non-consolidated investments.

 

SOURCE Plaza Retail REIT

For further information: Michael Zakuta, President and CEO, Tel: 514-457-0997 x228; Kim Sharpe, Director of Business Development, Tel: 506-357-7901