RioCan and Kimco Sell Air Rights and Residential Density

On December 23, 2008 RioCan REIT and Kimco Realty Corporation consummated the transfer of air rights and residential density with respect to a 3.6-acre parcel of land forming part of the Brentwood Village Shopping Centre for a purchase price of $25.6 million. Brentwood Village Shopping Centre, located in Calgary, is co-owned by RioCan and Kimco. RioCan obtained the required land use approval to permit a mixed-use development, which was a prerequisite of the sale.

Brentwood Village Shopping Centre is a commercial retail shopping centre consisting of 312,000 s.f. of retail space on 22.9 acres. The purchaser will redevelop the site, which will involve 50,000 s.f. of the existing retail being demolished and replaced with a number of mixed-used buildings, with approximately 568,000 s.f. of residential density, as well as 40,000 s.f. of retail space. RioCan and Kimco will retain the retail component of the site.

RioCan was represented by Fogler, Rubinoff LLP with a team that included Ray Gelgoot and Leneo Sdao. Rhonda Rudick of Davies Ward Phillips & Vineberg LLP provided tax advice concerning the transaction. The purchaser was represented by Arthur Shapero of Owens, Wright LLP and Darryl Barber, QC, of Bennett Jones LLP.
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