RioCan Repositions $235M In Assets, Including 80-Storey Yorkville Tower
RioCan is shifting $235M in residential development assets toward commercial uses, a move disclosed in its third-quarter results that raises questions about plans for an approved 80-storey condominium tower on Toronto’s Mink Mile.
The tower at 83–95A Bloor St. W., planned with Parallax, received zoning approval in December 2024. But RioCan’s latest financial statements identify the partnership as one of those moving residential inventory into investment properties.
The REIT also identified its partnership with Fieldgate, which proposed a 29-storey, 423-unit development at 2915–2943 Bloor St. W., near Royal York subway station.
RioCan has not confirmed whether either project will proceed or what might replace them.
The shift comes as Toronto’s condominium market struggles with a collapse in new sales. Just 60 pre-construction units sold across the Greater Toronto and Hamilton Area in the third quarter, leaving developers struggling to secure enough buyers to launch projects.
RioCan said several factors drove the changes, including cancelled condo purchase agreements, new retail leases and redevelopment plans put on hold indefinitely. The $235M represents existing assets, including its share of joint ventures, rather than new spending.
Chief financial officer Dennis Blasutti told analysts Tuesday that RioCan has repositioned certain residential development lands for retail use.
“Over time, we expect these assets to generate more durable and recurring cash flows,” he said.
The move comes as RioCan’s retail portfolio enjoys record 98.9% committed occupancy. The REIT is also expanding its commercial holdings, agreeing to pay $54.8M for an additional 37.5% interest in Calgary’s East Hills shopping centre, increasing its ownership to 77.5%.
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