Real eState
RioCan Real Estate Investment Trust Realizes Density Value on Sales of Air Rights at The Well™ in Toronto and 5th & THIRD™ in Calgary – GlobeNewswire
TORONTO, Dec. 23, 2020 (GLOBE NEWSWIRE) — RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) today announced the completion of the sales of a portion of the air rights at The Well™ in Toronto and 5th & THIRD™ in Calgary. Combined, RioCan realized density value totalling approximately $45.4 million at RioCan’s interest for the development of multi-residential condominium and rental buildings that will provide complimentary residential to the commercial components of RioCan’s mixed-used developments.
“Completion of these transactions is a positive indication of RioCan’s ongoing development progress and business activity despite current global challenges and circumstances,” said Edward Sonshine, Chief Executive Officer of RioCan. “Closing these transactions clearly points to the strong positioning of our assets, particularly for 5th & THIRD, our property in Calgary. The strength of our portfolio and development pipeline continue to allow us to complete deals that provide cash flow to strengthen our balance sheet and support our development program.”
Air Right Sales at The Well in Toronto
As planned, RioCan and its partners at The Well, Allied Properties REIT and Diamond Corp, completed the sale of residential air rights and podium space at Building A and B of The Well to Woodbourne Capital Management (“Woodbourne”). At RioCan’s 40% interest, sales proceeds total approximately $25.0 million including cost recoveries.
The Well is a new vibrant mixed-use community in Toronto’s downtown West that spans over seven and half acres and will comprise over 3.1 million square feet of office, retail and residential space. Construction at The Well continues to progress with the office component having reached 35 of 36 storeys with 84% of the office space pre-leased and on track for initial office tenants to take possession in 2021. Retail leasing at the site is ongoing as advanced discussions continue to progress with a number of retail tenants that would add to the overall character of The Well as envisioned. In addition, remaining air rights pertaining to four other residential buildings at The Well will be conveyed in 2021.
Woodbourne Capital Management is a Canadian private real estate fund with capital commitments from a high-quality base of institutional partners in Canada and the United States. It has already partnered with RioCan on a number of urban mixed-use developments including the residential tower FourFifty, The Well, Litho™ and 3180 Dufferin Street as well as in the near future, eCentral™, ePlace™ and Rhythm™ pending closing of these 50% co-ownership agreements in Q1 2021.
Air Right Sales at 5th &THIRD East Village in Calgary
RioCan has closed the sale of the remaining two-thirds of the residential air rights strata parcel at its 5th & THIRD property to Bosa Development (“Bosa”) for approximately $20.4 million. Bosa acquired the first one-third strata parcel in March of 2020. The combined sale proceeds for air rights to Bosa at 5th & THIRD totals approximately $32.1 million and will serve to reduce RioCan’s development costs and enhance development yield. These air rights enable Bosa to construct two towers providing residential space above RioCan’s 5th & THIRD retail space creating a mixed-use environment in downtown Calgary. Both residential towers, consisting of approximately 500 units in total, are currently under construction.
Wholly owned by RioCan, 5th & THIRD retail space includes tenants such as Olympia Liquor, TD Bank, Scotiabank and an urban format Real Canadian Superstore, which brings a one-stop shop supermarket to all East Village residents.
Bosa is a Vancouver, British Columbia based real estate development company with more than 50 years of history building commercial and residential real estate. The company has delivered over 20,000 homes and diverse commercial properties including industrial warehouses, office towers and hotels.
About RioCan
RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at September 30, 2020, our portfolio is comprised of 221 properties with an aggregate net leasable area of approximately 38.4 million square feet (at RioCan’s interest) including office, residential rental and 16 development properties. To learn more about us, please visit www.riocan.com.
Forward Looking Information
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events.
Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements.
Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan’s MD&A for the period ended September 30, 2020 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release.
Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Contact Information
RioCan Real Estate Investment Trust
Qi Tang
Senior Vice President and Chief Financial Officer
416-866-3033 | www.riocan.com
Real eState
2020 marked year of 'unprecedented' growth for Hamilton-area real estate market – TheSpec.com
Not even a global pandemic could stop the Hamilton-area real estate market from growing last year — and in more ways than one.
Nearly 15,000 homes were sold in 2020, marking an 8.4 per cent increase from 2019, while the average price of a home rose by 16.8 per cent to just a little more than $690,000, based on the latest figures released by the Realtors Association of Hamilton-Burlington (RAHB).
The latter is the “most surprising” figure, said RAHB president Donna Bacher, in an email to The Spectator.
“An almost 17 per cent growth in the average price — growth that would normally take two to three years to match — with sales and new listings being relatively normal is crazy,” said Bacher. “Even crazier is this unprecedented growth in average price happening in a year that was unprecedented to begin with.”
The market experienced a “slight slowdown” in March and April as the world ground to a halt due to COVID-19.
In April, the organization reported 484 residential sales in the month of April, a decline of 63.4 per cent compared to April 2019 and 56 per cent compared to March. Realtors pivoted in the wake of changing public health guidelines — and like everything else, open houses and showings went virtual.
The association had expected 2020 to “be a good market,” but the “uncertainty” around lockdowns stifled their expectations.
Bacher credited the “unexpected” gains to “government stimulus packages” as well as low-interest rates.
They also saw an influx of new buyers they never could have predicted.
“I don’t believe we expected the flee to detached homes and the migration radiating outward from Toronto influencing the number of sales in the (our) market area,” said Bacher.
In Hamilton, a detached single-family home sat on the market for an average of 24 days in 2020 compared to 31 in 2019. For Hamilton semi-detached, townhouses and row houses, the average number of days on the market was just 18, compared to 29 in 2019.
No community in the area covered by RAHB, which includes Niagara North and Haldimand County, saw a drop in their average home price last year, but new listings were down 7.4 per cent across the board compared to 2019.
Bacher said that the issue of “supply and demand” continues to drive up the prices of homes.
Back in 2010, the average price of a home in the region was $310,258 — last year’s stats represent a 125 per cent increase in the last decade, according to the association.
By the numbers
Hamilton saw a 10 per cent increase in sales, with the average price of a home rising by 18 per cent to $629,961.
Around the city, Ancaster experienced the highest jump in the number of sales with an increase of 26.7 per cent over 2019, while the Hamilton Mountain saw 2,113 home sales — topping the 2,045 processed in 2019. Dundas saw the largest drop in sales, falling to 304 sales from 323 in 2019.
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Flamborough held the highest average sale price at $969,322, but Bacher said that could be skewed by property size and type.
Burlington saw sales increase by six per cent and the average price of a home climb to $878,372.
Haldimand saw the most dramatic drop of listings, with a decrease of 19 per cent. But, the average price of a home in the area increased to $547,355 and the numbers of sales rose by seven per cent.
Niagara North saw an 11 per cent increase in sales, with the average price of a home rising by 15 per cent to $664,921.
By the numbers
Hamilton saw a 10 per cent increase in sales, with the average price of a home rising by 18 per cent to $629,961.
Around the city, Ancaster experienced the highest jump in the number of sales with an increase of 26.7 per cent over 2019, while the Hamilton Mountain saw 2,113 home sales — topping the 2,045 processed in 2019. Dundas saw the largest drop in sales, falling to 304 sales from 323 in 2019.
Flamborough held the highest average sale price at $969,322, but Bacher said that could be skewed by property size and type.
Burlington saw sales increase by six per cent and the average price of a home climb to $878,372.
Haldimand saw the most dramatic drop of listings, with a decrease of 19 per cent. But, the average price of a home in the area increased to $547,355 and the numbers of sales rose by seven per cent.
Niagara North saw an 11 per cent increase in sales, with the average price of a home rising by 15 per cent to $664,921.
CALGARY —
The Calgary Real Estate Board is predicting continued growth in Calgary’s housing market this year as result of low lending rates, but ongoing challenges are expected to prevent a substantial increase.
In its annual forecast released Tuesday, CREB predicted total sales in Calgary would increase in 2021 by nearly five per cent compared to last year’s sales.
The 2020 sales numbers exceeded initial expectations, bolstered by a rebound in the second half of the year as demand outpaced supply.
“It is expected some of the momentum recorded at the end of 2020 will continue into 2021, fueled by exceptionally low lending rates and pent-up demand,” said Ann-Marie Lurie, CREB chief economist, in a statement. “While sales are expected to rise by nearly five per cent on an annual basis in 2021, persistent economic challenges are expected to prevent stronger growth in our housing market.”
CREB is expecting an increase of listings in 2021 as homeowners facing economic challenges may need to sell during high unemployment, while other owners who were reluctant to list at the onset of the COVID-19 pandemic begin to enter the market.
The board is predicting 2021 prices to be one per cent higher than 2020.
I’ve done virtual keynotes for many real estate conferences in the past year and one of the key trends I’ve noted has been the use of augmented reality (AR) and virtual reality (VR).
High-contact industries are among those that can benefit the most from VR and AR technology
Prior to the pandemic, virtual property tours weren’t uncommon, but most individuals still preferred to see property in person. Today, that mindset has shifted, with countless buyers turning to virtual property tours first, before committing to see a home in person. Virtual tours have their roots in the computer gaming industry, providing the residential sector with the ability to use 3D and in some cases, VR headsets, to help bring spaces and surrounding areas to life.
While COVID has certainly been the most urgent and immediate factor influencing the rise in VR real estate tours, it’s not the only one. As Millennials and Gen Z become a larger percentage of home buyers, the demand for virtual and mobile real estate services is increasing. These generations have come to expect virtual options for nearly everything, and home buying is no exception.
The next evolution of virtual tours
One of the most advanced companies to bring virtual tours to the masses is Guided Virtual Tours, a rapidly-expanding Tampa-based startup.
Guided Virtual Tours is different from other virtual tour platforms—unlike traditional virtual tours that require users to click through to different points, this solution guides the prospect through the tour, selling the property just like an agent would. There’s no clicking from point to point or dragging to see different perspectives.
Instead, the prospect sits back and looks around as the VR leasing agent takes them through the tour.
In addition, this platform is also the first proactive touring solution in the industry. Because these virtual tours can be posted on a property manager’s YouTube or social profiles, it can automatically generate new leads while giving tours 24 hours a day.
Founder Chris Vasilakis, an American Mensa member and Marine Corps combat vereran, has a deep background in VR, having implemented it in various scenarios—including hip-hop artist management.
After founding multiple startups in different industries, he eventually went all in on virtual reality with Guided Virtual Tours.
According to Vasilakis, tours on his platform can be created at an affordable price, which hasn’t always been the case. “This is the future of touring all properties, allowing thousands of prospects to tour each day while reducing the need for human leasing agents,” he says. “It’ll be global—and it’s going to change the industry.”
It’s safe to say that virtual reality has enormous benefits for the year to come as our real estate landscape recovers and adapts to what I believe will be a big business boom in the near future
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