RioCan, Allied and Diamond Team-Up for Mixed-Use

RioCan, Allied and Diamond Team-Up for Mixed-Use Redevelopment
Project in Toronto's Downtown West 
TORONTO, ONTARIO -- (Marketwire) -- 11/12/12 -- RioCan Real Estate
Investment Trust ("RioCan") (TSX:REI.UN), Allied Properties Real
Estate Investment Trust ("Allied") (TSX:AP.UN) and Diamond Corp.
("Diamond") have entered into an agreement to acquire the Globe &
Mail Lands (the "Property") in Toronto's Downtown West for $136
million. The purchase is expected to be completed in mid-December
2012. Currently the home of The Globe & Mail Newspaper, the Property
is comprised of 252,617 square feet of office space and 579 parking
spaces all set on 6.47 acres of land forming part of the large city
block bounded by Spadina, Front, Draper and Wellington Streets. 
The site is a prime location for redevelopment in close proximity to
Toronto's downtown office corridor and adjacent to a large and
growing residential population. The acquisition will establish the
basis for a joint venture (the "Downtown West JV") between RioCan,
Allied and Diamond, with each of RioCan and Allied having an
undivided 40% interest and Diamond having an undivided 20% interest.
RioCan will have a beneficial ownership in the Downtown West JV of
43.9% including its 19.3% participation in Diamond's Whitecastle New
Urban Fund 2. The joint-venture partners intend to redevelop the
Property as a mixed-use retail, office and residential complex that
will become a landmark destination to live, work and shop in Toronto. 
RioCan, Allied and Diamond will act as joint development managers.
Upon completion, RioCan will act as property manager for the retail
component and Allied will act as property manager for the office
component of the redevelopment. 
Edward Sonshine, CEO of RioCan said, "We are excited to acquire, with
our partners, one of the largest underdeveloped contiguous parcels of
land in downtown Toronto. On this size footprint, we believe that we
can create a unique shopping and recreational complex as a centre for
the urban population that already exists and continues to grow in the
immediate surrounding area. Overlaid with what will be I am sure,
with our partners input, Toronto's finest integrated office,
residential and retail complex." 
Michael Emory, President and CEO of Allied added, "Not only does this
joint venture highlight the importance of our ongoing collaboration
with RioCan and Diamond, it affords us the opportunity to participate
in a major redevelopment that will complement our current portfolio
of nearly one million square feet at King & Spadina." 
Stephen Diamond, President of Diamond said, "This is a unique
opportunity to participate in city building at its finest, to create
a lasting mixed use landmark of architectural and urban design
excellence for the citizens of Toronto. We are very happy to be
partnering with two of Canada's leading developers who share our
commitment for innovation and quality." 
About RioCan 
RioCan is Canada's largest real estate investment trust with a total
capitalization of approximately $13.9 billion as at September 30,
2012. It owns and manages Canada's largest portfolio of shopping
centres with ownership interests in a portfolio of 338 retail
properties containing more than 80 million square feet, including 49
grocery anchored and new format retail centres containing 12.4
million square feet in the United States through various joint
venture arrangements as at September 30, 2012. RioCan's portfolio
also includes 10 properties under development in Canada. For further
information, please refer to RioCan's website at 
About Allied  
Allied is a leading owner, manager and developer of urban office
environments that enrich experience and enhance profitability for
business tenants operating in Canada's major cities. Its objectives
are to provide stable and growing cash distributions to unitholders
and to maximize unitholder value through effective management and
accretive portfolio growth. For further information, please refer to
Allied's website at 
About Diamond 
Diamond, a Toronto-based land development company maintains a strong
commitment to developing high-quality, innovative and award-winning
residential and mixed use projects. Diamond Corp has established
itself as a leader in progressive city building in the Greater
Toronto Area. As managers of the Whitecastle New Urban Fund and the
more recently launched Whitecastle New Urban Fund 2, Diamond Corp is
committed to the future of Canada's urban communities. For further
information, please refer to Diamond Corp's website at 
Cautionary Statements About Forward-Looking Information 
This News Release contains forward-looking statements within the
meaning of applicable securities laws. These statements include, but
are not limited to, statements concerning RioCan's, and Allied's
intention to acquire and redevelop an undivided co-ownership interest
in the Property in accordance with their intensification
joint-venture arrangement, as well as other statements concerning
each company's objectives, its strategies to achieve those
objectives, as well as statements with respect to management's
beliefs, plans, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements 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 statements
reflect management's current beliefs and are based on information
currently available to management. All forward-looking statements in
this News Release are qualified by these cautionary statements. These
forward-looking statements are not guarantees of future events or
performance and, by their nature, are based on current estimates and
assumptions, which are subject to risks and uncertainties, which
could cause actual events or results to differ materially from the
forward-looking statements contained in this News Release.  
Important factors that could cause Allied's actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in
Allied's Annual Information Form, which is available at These cautionary statements qualify all
forward-looking statements attributable to Allied and persons acting
on Allied's behalf. Unless otherwise stated, all forward-looking
statements speak only as of the date of this News Release and neither
Allied or persons acting on Allied's behalf have any obligation to
update such statements. 
For a list of risk and uncertainties effecting the operations of
RioCan, refer to the caption "Risk and Uncertainties" in RioCan's
latest financial statements and management's discussion and analysis
for the quarter ending September 30, 2012. Those risks and
uncertainties include, but are not limited to, those related to:
liquidity in the global marketplace associated with current economic
conditions, tenant concentrations, occupancy levels, access to debt
and equity capital, interest rates, joint ventures/partnerships, the
relative illiquidity of real property, unexpected costs or
liabilities related to acquisitions, construction, environmental
matters, l
egal matters, reliance on key personnel, unitholder
liability, income taxes, the investment in the United States of
America ("US"), US currency and RioCan's qualification as a real
estate investment trust for tax purposes. Material factors or
assumptions that were applied in drawing a conclusion or making an
estimate set out in the forward-looking information may include, but
are not limited to: a more robust retail environment compared to
recent years; relatively stable interest costs; a continuing trend
toward land use intensification in high growth markets; access to
equity and debt capital markets to fund, at acceptable costs, the
future growth program to enable the Trust to refinance debts as they
mature; the availability of purchase opportunities for growth in
Canada and the US; and the impact of accounting principles adopted by
the Trust effective January 1, 2011 under International Financial
Reporting Standards ("IFRS") which includes application to the
Trust's 2010 comparative financial results. 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 these
forward-looking statements. Certain statements included in this News
Release may be considered "financial outlook" for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this News Release.  
The Income Tax Act (Canada) (the "Act") contains legislation
affecting the tax treatment of publicly traded trusts (the "SIFT
Legislation"). The SIFT Legislation will not impose tax on a trust
which qualifies under such legislation as a real estate investment
trust (the "REIT Exception"). RioCan currently qualifies for the REIT
Exception and intends to continue to qualify for future years. Should
this not occur, certain statements contained in this News Release may
need to be modified. 
Except as required by applicable law, RioCan under takes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
RioCan Real Estate Investment Trust
Edward Sonshine O.Ont., Q.C.
Chief Executive Officer of RioCan
(416) 866-3018 
Allied Properties Real Estate Investment Trust
Michael Emory
President and CEO of Allied Properties
(416) 977-0643
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