SmartCenter, one of Canada’s biggest real estate companies signed into a joint venture agreement with Mitchel Goldhar of Penguin Group of Companies for the relocation of Walmart leases to give way for strategic plans on VMC lands, jointly owned by both companies.
The JV site’s 10 Acres will be used for the construction of the new Walmart store, a relocation of the old one. The termination of the Old Walmart will provide realization of the long-term plan of SmartVMC. Once the Old Walmart is relocated, the land will be used to develop residential condominiums, rental towers, and the remaining lands will pave the way for the development of Trancity City 1 and 2, 77,000 square foot offices, 225,000 square foot towers, and 55 storey condominium.
The joint venture also includes the purchase of Smartcenter in JV sites at a 50% interest equivalent to $109.2 million from Penguin. To fund the acquisition, Smartcenter will use the senior unsecured debenture. The acquisition price is the fair market value of the anticipated development plans of the said lands.