Almost a year to the day after announcing their partnership to build new retirement residences, SmartCentres REIT (SRU-UN-T), Penguin Group of Companies and Revera have unveiled details of the first three developments, which will comprise 536 units in the Greater Toronto Area.
The three projects consist of seniors’ apartments and retirement residences in Vaughan and Oakville. Each will be developed by SmartCentres and/or Penguin, and then operated by Revera. Ownership will be on a 50/50 basis.
Total investment in the three developments will be approximately $300 million and construction is expected to start in spring of 2020, according to a release late Thursday.
“This strategic partnership leverages our organizations’ blend of complementary, innovative expertise in development and in the seniors housing market,” said Thomas Wellner, president and chief executive officer of Revera, in the release. “For Revera, the joint venture is an exciting contributor to our long-term strategic focus on growth in key market segments to enhance the aging experience for the residents we serve.”
More retirement residences planned
The partners expect to develop more residences, noting “there are many sites which are currently owned by SmartCentres, Penguin and Revera that have been specifically identified for this development program.”
“The introduction of retirement living residences on our sites is just one example of the synergistic intensification opportunities available in our portfolio of well-located shopping centres,” said Peter Forde, president & CEO of SmartCentres, in the release. “Seniors and their guests will enjoy the activities and the shopping available in the surrounding retail space.
“We look forward to this new relationship with Revera, generating at least five new residences per year for the foreseeable future.”
According to its website, SmartCentres owns interests in 170-plus retail and mixed-use properties across Canada, and is seeking means to maximize value at many of its sites.
SmartCentres diversifying portfolio
The trust has been actively expanding the breadth of its portfolio to include residential (single-family, condominium and rental), retirement homes, office, and self-storage, either on its large urban properties such as the Vaughan Metropolitan Centre or to enhance its existing shopping centres.
“Our strategy is to extract deeply imbedded value from each of our existing properties across Canada by developing residential, seniors, office and self-storage facilities,” said Mitchell Goldhar, executive chairman of the SmartCentres board, in the release. “This will result in new sources of non-retail income growth. And the new arrangement with Revera will accelerate this strategy.”
This is not the only partnership in which Revera has become involved during the past year. It is also developing Clifton Place in Edmonton with One Properties. Consisting of 290 residential retirement suites with a variety of living options (independent living, memory care and assisted living), Clifton Place will overlook the North Saskatchewan River.
About Revera, SmartCentres, Penguin
Revera is a Canadian-owned and headquartered, owner, investor, developer and operator in the senior living sector. It owns, has interests in or operates more than 500 properties across Canada, the United States and the United Kingdom, serving more than 55,000 seniors.
Revera employs about 50,000. The company offers seniors’ apartments, independent living, assisted living, memory care, and long-term care.
SmartCentres is one of Canada’s largest real estate investment trusts with total assets of approximately $9.4 billion. It owns and manages 34 million square feet of retail space in value-oriented, principally Walmart-anchored retail centres.
In addition, SmartCentres is a joint-venture partner in the Premium Outlets locations in Toronto and Montreal with Simon Property Group.
Penguin is a private company owned by Goldhar. It owns real estate across Canada at various stages of development including an interest in the Vaughan Metropolitan Centre 100-acre master planned development.
Penguin’s portfolio includes 12 properties co-owned with Walmart. It has also developed a network of 108 Penguin Pick-Up locations offering free pick-up for online purchases, as well as Penguin Fresh, an on-line food marketplace.