RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

January 18, 2007 16:07 ET

RioCan REIT Announces $151.5 Million Public Offering of Trust Units

TORONTO, ONTARIO--(CCNMatthews - Jan. 18, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) announced today that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, subject to regulatory approval, 6,000,000 trust units (the "Units") for $25.25 per Unit for gross proceeds of approximately $151.5 million. RioCan has granted the underwriters an option, exercisable up to 48 hours prior to closing of the offering, to purchase a further 600,000 units at the issue price which, if fully exercised, would result in additional gross proceeds of approximately $15.15 million. RioCan will use the proceeds from this offering for ongoing acquisitions, including partially funding the cash consideration of the purchase of the Yonge Eglinton Centre, ongoing development programs and for general trust purposes.

RioCan has entered into a firm agreement to acquire the Yonge Eglinton Centre, a leading 1,012,500 square foot mixed-use complex that is located at the northwest corner of Yonge Street and Eglinton Avenue, an important intersection and crossroad in midtown Toronto. The property is comprised of two office towers, four levels of retail and an underground parking structure. The office area comprises approximately 748,000 square feet. The retail area comprises approximately 264,500 square feet and features a number of national retailers including Dominion, Famous Players, Indigo Books, Toys "R" Us, LCBO, Pharma Plus and HMV. RioCan will manage both the retail and office components. The completion of this purchase is scheduled for January 31, 2007.

The offering is being made under RioCan's base shelf prospectus dated May 19, 2006. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The offering is expected to close on or about February 1, 2007.

The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Units being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Units may not be offered or sold to U.S. person except pursuant to applicable exemptions from registration.

About RioCan:

RioCan is Canada's largest real estate investment trust with a total market capitalization of approximately $7.9 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 204 retail properties, including 8 under development, containing an aggregate of over 50.9 million square feet. For further information, please refer to RioCan's website at www.riocan.com.

Contact Information

  • RioCan Real Estate Investment Trust
    Edward Sonshine, Q.C.
    President & CEO
    (416) 866-3018
    Website: www.riocan.com