Mr. Dori Segal reports

FIRST CAPITAL REALTY PROVIDES UPDATE ON MAJOR DEVELOPMENT PROJECTS

First Capital Realty Inc. has provided an update on its major urban development and redevelopment projects currently under way or having recently received or in the final stages of approvals.

Hazelton Lanes Shopping Centre, Toronto, Ont.

First Capital Realty received municipal approvals from the City of Toronto in late 2013 to allow the company to start the redevelopment of the interior and exterior of Hazelton Lanes Shopping Centre. Hazelton Lanes is a 205,000-square-foot shopping centre with 515 stalls of underground parking, which is centrally located in the Bloor/Yorkville area, Canada's premier shopping district and one of Canada's most affluent neighbourhoods. Tenants of the shopping centre include a Whole Foods grocery store and an Equinox gym.

The redevelopment of Hazelton Lanes entails a complete renovation of the interior mall, including the creation of some additional retail space, and an attractive new facade that will open up the shopping centre's street-facing retailers to Avenue Road, a major arterial road in the city of Toronto. First Capital Realty expects to commence construction on the project shortly and will maintain the shopping centre in operation throughout the renovation.

In addition to Hazelton Lanes Shopping Centre, the company's Yorkville portfolio includes a further 55,000 square feet of mixed-use streetfront retail and commercial space, as well as an investment in 77 hotel suites and related retail, all located on Yorkville Avenue.

Humbertown Shopping Centre, Toronto, Ont.

First Capital Realty's Humbertown Shopping Centre rezoning application received City of Toronto council approval in late 2013 and today received approval by the Ontario Municipal Board. These approvals will permit the redevelopment of Humbertown Shopping Centre into a mixed-use property that will include 235,000 square feet of retail and commercial uses in five buildings, and 550,000 square feet of residential, which will include condominiums, townhomes and a seniors residential building, with a total of 1,495 parking stalls (including 815 stalls for retail/commercial use, substantially all of which are underground). The residential component of the property is expected to be developed in a joint venture with a leading residential developer. Once completed, First Capital Realty expects the redeveloped Humbertown Shopping Centre to continue to be anchored by a grocery store, and other daily necessity retailers and service providers.

Humbertown Shopping Centre was originally developed in 1958 and is located in the heart of Toronto's affluent Humber Valley neighbourhood.

Rutherford Marketplace, Vaughan, Ont.

The company received municipal approvals in late 2013 for the development of the third and final phase of Rutherford Marketplace, located at the major intersection of Bathurst Street and Rutherford Road in the city of Vaughan. The development entails the construction of an additional 50,000 square feet of retail/commercial uses, a 240,000-square-foot residential condominium building and 560 underground parking stalls (including 155 stalls for retail/commercial use). This additional density, together with the existing Rutherford Marketplace Shopping Centre initially developed by the company in 2009 to 2010, will consist of a total of 243,000 square feet retail/commercial space with 610 surface and 1,000 underground retail/commercial parking stalls. Current tenants of the property include Longo's, Shoppers Drug Mart, LA Fitness, Liquor Control Board of Ontario, RBC Royal Bank, CIBC, Second Cup and Aroma.

Shops at King Liberty, Toronto, Ont.

In late 2013, First Capital Realty received final rezoning approval for the development of its KingsClub mixed-use project in Liberty Village, just west of Toronto's downtown core and one of the city's fastest-growing neighbourhoods. KingsClub will be developed in a joint venture with Urbancorp, one of the leading residential developers in the King/Queen West area, and will comprise almost 160,000 square feet of retail/commercial uses and 345,000 square feet of residential (for approximately 500 residential units) in three high-rise buildings above the retail, as well as a total of 775 underground parking stalls (including 345 stalls for retail/commercial use). Construction is under way, and the project is currently in the excavation stage. The company has the right to acquire its joint venture partner's interest in the retail/commercial space and related parking at completion.

KingsClub, together with the remainder of First Capital Realty's existing shops at King Liberty mixed-use retail and commercial property, will total 450,000 square feet of retail/commercial space, and 960 underground and surface parking stalls. The property includes two heritage buildings restored to state-of-the-art commercial properties by the company. Tenants of the property presently include Metro, GoodLife Fitness, West Elm, EQ3, LCBO, The Beer Store, TD Canada Trust, CIBC, RBC Royal Bank, Starbucks and Aroma.

Edmonton Brewery District, Edmonton, Alta.

First Capital Realty obtained rezoning approval for this 14.3-acre site located on 104th Avenue in downtown Edmonton in late 2013 to allow for retail, office and high-density residential use. The company is presently in the process of obtaining its development permit for the project and may start construction as early as the second quarter of 2014. The project is a joint venture with Sun Life Financial.

Edmonton Brewery District's unique design will incorporate certain buildings from the Molson Brewery that previously operated on the site. Upon completion of its two phases of development, the property is expected to comprise approximately 267,000 square feet of retail and 70,000 square feet of office, with a total of 390 surface and 590 underground parking stalls. The project enjoys strong interest, and the company is in advanced lease negotiations with various tenants. In addition, the site includes three acres of development land that is intended in the future to be sold to a third party residential developer for construction of approximately 430,000 square feet of residential density.

Following completion, Edmonton Brewery District is expected to be directly linked to the 120th St. Station on the West LRT (light rapid transit) line that is in planning to be built by the City of Edmonton. Edmonton Brewery District is located diagonally across the street from the company's existing 45,000-square-foot Longstreet Shopping Centre.

Mount Royal Village, Calgary, Alta.

As part of its redevelopment of Mount Royal Village, First Capital Realty is nearing completion on the major renovation of the 136,000-square-foot Mount Royal Village Shopping Centre mixed-use retail and office complex, which includes, as major tenants, London Drugs and GoodLife Fitness, and is expected to also include a high-end furniture retailer and restaurants. In addition, the company is currently in the entitlements process for the development of an adjacent three-level, 110,000-square-foot retail/commercial building, to be anchored by an Urban Fare grocery store. The company intends to sell a land parcel forming part of the property to a residential developer for construction of a 250,000-square-foot, high-rise residential condominium building.

Mount Royal Village is located on 17th Avenue SW, in the beltline of Calgary's downtown core, and is in the heart of a densely populated, fast-growing, high-income neighbourhood. On completion of the redevelopment project, Mount Royal Village will total 336,000 square feet of retail/commercial space and 630 parking stalls.

Place Viau, Montreal, Que.

First Capital Realty is completing delivery of phase I of a major redevelopment of Place Viau. This new multilevel shopping centre comprises a full-scale, open-air shopping centre on top of a building that includes a Walmart store and other retail/commercial space, all connected with convenient pedestrian and vehicular access, vertical transportation, and surface and covered parking. Place Viau makes innovative use of the surrounding topography to provide street-level entrances to all components of the shopping centre. Once complete, Place Viau's first phase will encompass a total of 235,000 square feet of retail space, 635 underground parking stalls and 300 surface parking stalls. The shopping centre's 100,000-square-foot Walmart store opened today.

According to the company's current plans, upon completion of future phases of redevelopment, Place Viau may comprise, in total, approximately 360,000 square feet of retail/commercial space, 1,360 underground and surface parking stalls, and may incorporate residential density. Together with the company's neighbouring Place Michelet and Place Provencher shopping centres, and assuming final completion of all phases of the Place Viau redevelopment, the company expects to own a total of 501,000 square feet of retail/commercial space in this retail node at the busy intersection of Highway 40 and Boulevard Viau, in the Montreal borough of Saint-Leonard.

VMR Shopping Centre, Montreal, Que.

First Capital Realty has obtained municipal approval for the redevelopment of its VMR Shopping Centre. The company commenced construction in late 2013 on the first phase of the redevelopment comprising a multitenant, single-level building in the parking lot of the existing shopping centre. Completion of this first phase will permit the company to thereafter proceed with the remainder of the redevelopment, including demolition of the existing shopping centre and the construction of a 49,000-square-foot Provigo Le Marche grocery store (Loblaws) on the second floor of a multitenant building.

Further phases will complete redevelopment and rebranding of this well-located shopping centre, in the affluent borough of Ville Mont-Royal in Montreal. Subject to final plans and approvals being obtained, once completed, the redeveloped VMR Shopping Centre is expected to include approximately 122,000 square feet of retail/commercial space, 420 surface parking stalls and may incorporate residential density.

Collectively, the above projects (assuming all phases) are expected to consist of an aggregate of approximately $520-million of future incremental investment over the next five years. Collectively, these properties have an average household income of $91,000 and an average population of 398,000 within a five-kilometre radius. In addition to the projects listed above, the company's major developments pipeline also includes projects at the following properties that are currently in active planning: Victoria Park Centres, Toronto, Ont.; 3080 Yonge St., Toronto, Ont.; Place Portobello, Brossard, Que.; Macleod Trail, Calgary, Alta.; and Semiahmoo Shopping Centre, Surrey, B.C.

"With the recent approvals received on the above projects, we are advancing into the construction phase to build what cannot be bought in these mature, supply-constrained markets," said Dori J. Segal, president and chief executive officer of First Capital Realty. "We are pleased with the important milestones achieved and the progress being made on these major development projects."

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