First Capital Realty Adds Five Shopping Centers

TORONTO-First Capital Realty Inc. has acquired five grocery-anchored properties in separate transactions totaling $65 million (US$53.65 million). The purchases add 329,000 sf to the locally headquartered public company's 14 million-plus-sf retail portfolio.The largest of the properties is Harbour Front Centre, a 127,000-sf property in North Vancouver, BC. National and regional tenants with long-term leases represent 95% of the center's square footage and contribute 93% of its net rental income. The purchase price of approximately $34.3 million (US$27.77 million), including closing costs, was satisfied by a combination of cash and the assumption of $23.5 million (US$19.02 million) of long-term debt at 5.87% fixed rate due in January 2012. An 85,000-sf Canadian Tire anchors the center. Other tenants include Michael's (21,000-sf), Van City Savings (4,700-sf), Kelsey's (5,000-sf) as well as McDonald's and Tim Hortons. Across the street from Harbour Front Centre, the company also picked up 1331 Main St., a 55,000-sf commercially zoned building that the company plans to redevelop for retail use. The purchase price of approximately $5.7 million (US$4.61 million) included the assumption of $1.9 million (US$1.53 million) of long-term debt at 7.49% fixed rate due in August 2010.The company also picked up two properties in Quebec. One is Place Michelet, a 59,000-sf newly constructed shopping center in Montreal. This property is located on the corner of Jean Talon and Viau and is near First Realty's Place Viau and Place Provencher shopping centers. Place Michelet is anchored by a 40,000-sf IGA Extra (Sobeys). The purchase price of approximately $13.5 million (US$10.92) , included the assumption of $6.9 million (5.58) of long-term debt at 6.78% fixed rate due in December 2013.The other Quebec property was Carrefour Des Forges, a 50,000-sf IGA Extra (Sobeys) supermarket located in Drummondville. The purchase included adjacent land for future development. The purchase price of approximately $7.7 million (US$6.23 million) was satisfied in cash.Finally, in Alberta, the company acquired Airdrie Village Square, a 38,000-sf neighborhood shopping center adjacent to Towerlane Mall (which First Capital Realty acquired in May) in the city of Airdrie, a suburban community near Calgary. The purchase price of approximately $7.7 million (US$6.23 million) was an all-cash transaction.First Capital Realty CFO Karen Waver was not immediately available Thursday morning for additional comment on the transactions. In addition to its 14.4-million-sf retail portfolio, First Capital Realty owns a 17.6% stake (13 million shares) in Equity One, one of the largest shopping center REITS in the southern US with 34.1 million sf of retail space in 307 properties.