RioCan said its Queensway property, which was co-owned 50/50 by RioCan and Talisker, comprises two parcels: the development land component and the Cineplex land component. The 14.6-acre Cineplex component is occupied entirely by a Cineplex cinema. Spanning 3.2 acres, the development component fronts the Cineplex component along the Queensway and is currently occupied by three Recipe Unlimited banner restaurants and a Scotiabank branch, it said.
“With the last of the leases for the four units of the development component expiring July 2022, RioCan’s best-in-class development team has already rezoned this component to permit a 500,000 square feet mixed-use development,” said the Trust.
“RioCan has acquired the remaining 50 percent interest in the development component, which the Trust now owns 100 percent post this transaction. RioCan has also disposed of its 50 percent interest in the Cineplex component, which Talisker now owns 100 percent post this transaction. The development component is valued at $80 per square foot of zoned density and the Cineplex component is valued at a capitalization rate of 6.95 percent based on in-place net operating income in the Cineplex component. The net transaction price was $9.3 million paid by RioCan to Talisker.
“The Queensway development component is located at the corner of Islington Avenue and the Queensway in the west end of Toronto. This property is minutes away from the TTC’s Bloor subway line and Mimico Go Station as well as in close proximity to major highways and directly off an exit from the Queen Elizabeth Way (QEW) highway. The Queensway area has been subject to new high-rise residential development given its proximity to conveniences including transit, schools, retail outlets and an easy commute to Toronto’s downtown core. As a mixed-use condominium development, this project contemplates approximately 460,000 square feet for residential use and approximately 40,000 square feet for retail use. With zoning approval in place, construction is currently anticipated to commence in 2022. In addition, RioCan is in discussions with potential capital partners, where RioCan would serve as development manager for the project.”
