Press Release


June 03, 2011


Toronto, Ontario (June 3, 2011) – ProMed Properties (CA) Inc (“ProMed Canada”), a wholly owned subsidiary of Gazit America Inc. (“Gazit America”) (TSX: GAA), and First Capital Realty Inc. (“First Capital Realty”) (TSX: FCR) announced that they have entered into an agreement to jointly acquire the Meadowlark Health & Shopping Centre in Edmonton, Alberta for a purchase price of approximately $84.0 million including transaction costs. The acquisition is subject to customary closing conditions, and regulatory approval. The acquisition is expected to close early in the third quarter of 2011.

The Meadowlark Health & Shopping Centre consists of nine separate single storey buildings, comprising 306,000 square feet of gross leasable area on a 23 acre site. It is located on the northwest corner of 87th Avenue and 156th Street in Edmonton, Alberta. The property is currently 100% leased with a strong mix of medical office and retail tenants. The centre is anchored by Canada Safeway, CASC (provincial government agency), Insight Medical, Shoppers Drug Mart and a 71,000 square feet Zellers store. This Zellers store was not included in the first tranche of stores selected for the Target banner, and may not be converted into a Target store. The property is located 1.7 km from the Misericordia Community Hospital, an acute care facility with more than 300 beds, and 2.2 km from The West Edmonton Mall.

The property will be acquired on a 50/50 joint venture basis by ProMed Canada and First Capital Realty. Decisions regarding the property will be made jointly by ProMed Canada and First Capital Realty pursuant to a co-owners agreement negotiated on customary arm’s length commercial terms. A subsidiary of First Capital Realty is expected to manage the property pursuant to an agreement with ProMed Canada also negotiated on customary arm’s length commercial terms. The purchase price is expected to be funded in cash and with a new $50 million first mortgage currently in advanced discussions.

Gail Mifsud, Gazit America’s CEO commented, “The acquisition of the Meadowlark Health & Shopping Centre marks our first property in Western Canada and our first transaction with a joint venture partner and follows our strategy of acquiring best-in-class medical office properties adjacent to major hospitals in large urban markets. This fully leased, well located property is a great addition to our property portfolio.”

Brian Kozak, First Capital Realty’s Senior Vice-President, Western Canada commented, “We are excited about the acquisition of this unique asset. The expected arrival of the light-rapid transit (LRT) station in the next five years, combined with the attractive demographic and income profile of the area, solidifies the long-term potential for this property”.


Gazit America is focused on entrepreneurial real estate investments including the acquisition and development of income-producing properties, investments in public and private real estate entities, investments in joint ventures and other structured acquisitions and investments in commercial and residential mortgage-backed securities. Gazit America currently owns approximately 12.5% of Equity One, Inc. (NYSE: EQY), a U.S. real estate investment trust, and eight properties totaling approximately 523,000 square feet of rentable space located in Longueuil and Montreal, Quebec, and Cambridge, London, Mississauga, and Ottawa, Ontario.

For further information regarding Gazit America:

Gail Mifsud, C.E.O.
Gazit America Inc.
109 Atlantic Avenue, Suite 303
Toronto, Ontario, Canada M6K 1X4
Tel: (416) 447-6400
Fax: (416) 447-6488


First Capital Realty is Canada’s leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas. First Capital Realty currently owns interests in 163 properties, including three under development, totalling approximately 22.4 million square feet of gross leasable area and seven sites in the planning stage for future retail development.

For further information regarding First Capital Realty:

Dori J. Segal, President & C.E.O., or
Karen H. Weaver, E.V.P. & C.F.O.
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114
Fax: (416) 941-1655


This press release contains forward-looking statements, and other statements concerning Gazit America’ s and First Capital Realty’s objectives and strategies and their beliefs, plans. estimates and intentions. The forward-looking statements are not historical facts but reflect Gazit America’s and First Capital Realty’s current expectations regarding future results or events and are based on information currently available to each of their respective management teams. Certain material factors and assumptions were applied in providing these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements.

Management of Gazit America and management of First Capital Realty believe that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, management can give no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, with respect to Gazit America, the matters discussed under “Risks and Uncertainties” in Gazit America’s current Management’s Discussion and Analysis and “Risk Factors” in Gazit America’s current Annual Information Form, and with respect to First Capital Realty, the matters discussed under “Risks and Uncertainties” in First Capital Realty’s Management’s Discussion and Analysis for the year ended December 31, 2010 and “Risk Factors” in First Capital Realty’ s current Annual Information Form.

Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward- looking statement speaks only as of the date on which such statement is made. Neither Gazit America nor First Capital Realty undertakes any obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws.

These forward-looking statements are made as of the date of this press release.