Calloway REIT Announces Major Mixed Used Development

Calloway REIT Announces Major Mixed Used Development 
TORONTO, ONTARIO -- (Marketwire) -- 10/31/12 -- Calloway Real Estate
Investment Trust (Calloway) (TSX:CWT.UN) today announced a 50/50
joint venture with SmartCentres to develop a vast tract of land (53
acres) within the Vaughan Metropolitan Centre (VMC). The Calloway VMC
lands are strategically located adjacent to the terminus of the
Spadina-York subway station in Vaughan and will be home to almost 6
million square feet of commercial, residential and retail
development. Construction of the first building will begin in 2013. 
"The Calloway lands will be the heart of the VMC," said Al Mawani,
President & CEO of Calloway. "The VMC is the most exciting urban
development in all of Canada. The Vaughan subway station together
with the new regional bus terminal will connect the 905 to downtown
Toronto and downtown Toronto to the 905. Also, the close proximity to
the major roads and highway infrastructure, namely Highways 400, 407
and 7, makes our property a uniquely attractive location for
corporate offices, retail and new residential development." 
Calloway's VMC lands are currently "virtually undeveloped". To put
this in context, upon completion, the Calloway JV lands will be
similar in uses, densities, public transit and size to an area
bounded by Bloor Street to Charles Street and Avenue Road to Jarvis
Street in Toronto. 
The first building to be constructed under the Calloway JV will be a
Diamond & Schmitt Architects designed 300,000 square foot office
tower with KPMG (one of Canada's largest international accounting
firms) as the lead tenant. Construction is scheduled to begin in 2013
with completion in 2015. When complete, the 1200 people who will work
in the KPMG Tower will have direct connections to both the subway
station and the regional bus terminal by an underground pedestrian
tunnel. Plans for the Calloway JV also include a major central park,
civic square, and other associated uses supporting such urban city
centres. 
The Calloway VMC JV interest significantly expands the square footage
of pipeline assets for the Trust by approximately 75% to almost 7
million square feet. Prior to this JV agreement, Calloway's interest
was limited to the retail component on these lands. 
This mixed use urban development also 
represents a significant new
area of growth for Calloway. This diversification is in addition to
Calloway's earlier announced venture with Premium Outlets in Toronto
(Halton Hills) and Montreal (Mirabel). Construction of Toronto
Premium Outlets, Canada's first true outlet centre, is scheduled to
be complete by August 2013 and construction of Calloway's second
outlet centre is expected to begin in Montreal in early 2013. 
"We continue to invest our resources in feasible, profitable
opportunities to maximize the returns," said Mawani. "When the
Calloway VMC lands are fully built out, a significantly increasing
portion of our cash flow will come from urban mixed use assets, and
will open up even more development opportunities for Calloway in the
future." 
"This JV with Calloway will leverage the strengths of both companies
and will be implemented by a team of urban planning and development
professionals with extensive experience." said Mitchell Goldhar,
President and owner of SmartCentres. "You cannot underestimate the
impact of a subway on developable land." 
The VMC joint venture agreements complete the previously disclosed
outstanding negotiations related to floor cap rates on earnouts. 
About the VMC 
Located at the intersection of Highways 400 and 7 in the City of
Vaughan, the VMC is an exciting and unparalleled emerging urban core
within the northern Greater Toronto Area. This 400-acre planned
downtown for the City of Vaughan will be home to 25,000 new residents
and 11,000 new jobs in a variety of office and retail businesses. It
will provide all the amenities of a vibrant city centre including
direct access to multi-modal public transit including the Toronto
subway system, while maintaining excellent access to the 400 series
highway network within the GTA. 
About Calloway 
Calloway is one of Canada's largest real estate investment trusts
with an enterprise value of approximately $6.2 billion. It owns and
manages approximately 26 million square feet in 118 value-oriented
retail centres having the strongest national and regional retailers,
as well as strong neighbourhood merchants. Calloway's vision is to
provide a value-oriented shopping experience to Canadian consumers.
For more information on Calloway, visit www.callowayreit.com. 
About SmartCentres 
A Canadian company, SmartCentres has developed more than 250 shopping
centres in communities big and small, and operates in every province.
SmartCentres is a major contributor to SickKids, Bloorview Kids
Rehab, CAMH and the Canadian Museum for Human Rights and many other
worthy causes across Canada. For more information on SmartCentres,
visit www.smartcentres.com.
Contacts:
Calloway Real Estate Investment Trust
Al Mawani
President and Chief Executive Officer
(905) 326-6400 ext. 7649
(905) 326-0783 (FAX)
www.callowayreit.com
 
 
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