Business
Calloway Real Estate Investment Trust announces U.S. investment
Calloway Real Estate Investment Trust announces U.S. investment.
About this update from Smartcentres Real Estate Investment Trust
[{"type":"text","content":"\n\n\n\nTORONTO, April 16 /CNW/ - Calloway Real Estate Investment Trust\n(TSX:CWT.UN) revealed today plans for its first investment in an international\nmarket.\n\n\nCalloway is negotiating the acquisition of two retail centres in the\nState of Oregon, which will comprise approximately 500,000 square feet of\nretail space upon completion by the developer, SmartCentres of Toronto.\n\n\nThe centres will be located in Portland (centre size: 240,000 square\nfeet), the largest city in the State with a population of over 500,000, and in\nAlbany (centre size: 260,000 square feet) a growing community of over 40,000.\nThe centres will be developed by and managed from the conveniently located\nSmartCentres office in Richmond, B.C. Completion of the developments is\nanticipated by early 2010. The developments will be anchored by large format\nretailers who will provide a focal point to draw consumers to the centres.\n\n\nMr. Simon Nyilassy, President and CEO of Calloway said, "Calloway's\nformula of investing in newly constructed, large scale centres that provide a\nvalue-oriented shopping experience to the local community has worked well for\nus in Canada. We believe this formula can be applied successfully elsewhere\nand we are pleased to be able to work with SmartCentres, our primary Canadian\ndevelopment relationship, to take our first step in this regard." He also said\n"Calloway's investments outside Canada will be planned in manageable steps in\na way that we can properly execute all of the details. We will also ensure\nmaintenance of our status as a tax-exempt entity under the recently announced\nrules governing taxation of trusts. These rules provide the latitude for over\n$1 billion in foreign investments."\n\n\nMr. Nyilassy further stated, "We believe the SmartCentres brand and its\napproach to shopping centre development will work exceptionally well in\ninternational markets. Both Calloway's and SmartCentres' major tenant base is\ncomprised of international retailers."\n\n\nCalloway anticipates an initial investment of U.S. $10 million in\napproximately 50 acres of land. Upon completion, an aggregate investment of\napproximately U.S. $35 million is expected. It is anticipated that the\nadditional investments will be made on an 'earn-out' basis and should provide\nCalloway with a pre-negotiated retu...