Business
Calloway announces new acquisitions, development joint venture with SmartCentres
Calloway announces new acquisitions, development joint venture with SmartCentres.
About this update from Smartcentres Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nTORONTO, May 30 /CNW/ - Calloway Real Estate Investment Trust\n(TSX:CWT.UN) announced today that it has entered into conditional agreements\nwith SmartCentres with respect to the acquisition of interests in 6\nproperties. Calloway's ownership of retail space will increase by\napproximately 1.1 million square feet, at an estimated cost of $252 million,\non full build out of these properties.\n\n\nFollowing completion of the transaction, Calloway's owned pipeline of\nfuture developments will increase to 6.3 million square feet and it will own\noptions to acquire a further 2.2 million square feet. As a result, Calloway's\nexisting portfolio of retail space will increase by over 44%, to 27.8 million\nsquare feet from the current 19.3 million square feet, upon full build out and\nafter exercising all purchase options.\n\n\nLocated in the Greater Toronto Area (5) and British Columbia (1), the 6\nnew centres will reflect the trademarks of Calloway quality. Wal-Mart will\nanchor in five of the six centres and four of the centres will have multiple\nanchors, including Wal-Mart. Two of the properties, in Aurora and Oshawa, will\neach comprise over half a million square feet of leased area on completion and\nwill be home to new Wal-Mart Supercentres. Development of these centres has\nalready commenced and pre-leasing interest is strong at approximately 850,000\nsquare feet, or 82%.\n\n\nAlso included is a planned 370,000 square foot shopping centre in British\nColumbia, which will be Calloway's first-ever joint development with\nSmartCentres (Calloway's 50% interest will be 185,000 square feet).\n\n\nThe 6 properties, described in more detail below, comprise 2 operating\nshopping centres, in which Calloway will own approximately 137,000 square feet\nof leased area and 7,000 square feet of expansion potential, and 4\ndevelopments with almost 1 million square feet of potential leaseable area.\nAggregate investments will be approximately $252 million, with an initial\npayment of $84 million and the balance payable as the properties are\ndeveloped. The properties are expected to be substantially completed over the\nnext 1 to 3 years.\n\n\nMr. Simon Nyilassy, President and CEO of Calloway said "these\ntransactions take Calloway to a new level. In the past, Calloway has acquired\nlands and acquired completed shopping centres from Sm...