Fredicton/Brockville – Plaza Retail REIT announced on Wednesday that it has acquired the 1000 Islands Mall in Brockville for $14.0 million.
The 1000 Islands Mall property, previously anchored by a Sears Canada store that now sits empty, is a 281,000 square foot enclosed mall that is ideally positioned for redevelopment as a strip plaza. Located on Parkedale Avenue adjacent to Highway 401, the property has long been the retail focal point of the Brockville market, easily accessible by area consumers. The REIT intends to redevelop the property into a multi-unit retail plaza comprising approximately 155,000 square feet of gross leasable area. The property will also have excess density that can accommodate future expansion.
“The acquisition of this property comes on the heels of last month’s acquisition of a Québec property that was also previously leased to Sears,” said Michael Zakuta, President and CEO of the REIT. “Plaza is recognized for our core strengths in development and redevelopment. This property represents another new opportunity for Plaza to leverage this proven expertise to capitalize on the changing retail landscape in Canada.”
The REIT has satisfied the purchase price through $4.9 million in cash and a new $9.1 million borrowing facility at a cost of prime plus 1.25%. Development/construction expenses will be financed through the expansion of this facility. Consistent with Plaza’s established redevelopment strategy, the REIT has initiated discussions with multiple potential tenants for the site.
Plaza is an open-ended real estate investment trust and is a leading retail property owner and developer, particularly in Eastern Canada. Plaza’s portfolio at September 30, 2017 includes interests in 295 properties totaling approximately 7.7 million square feet across Canada and additional lands held for development. Plaza’s properties include a mix of strip plazas, stand-alone small box retail outlets and enclosed shopping centres, anchored by approximately 90% national tenants. For more information, please visit www.plaza.ca.