RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

June 27, 2005 10:07 ET

RioCan Announces Completion of Redevelopment of Mayfield Common

TORONTO, ONTARIO--(CCNMatthews - June 27, 2005) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has completed the redevelopment of Mayfield Common in Edmonton, Alberta. As a result, RioCan's co-owner, CIBC Capital Partners, the merchant banking division of Canadian Imperial Bank of Commerce, has sold its 70% interest in Mayfield Common to Sun Life Assurance Company of Canada creating a joint venture between RioCan and one of Canada's pre-eminent financial institutions. Sun Life Assurance Company of Canada is a wholly owned subsidiary of Sun Life Financial Inc. and a member of the Sun Life Financial group of companies.

Located in Edmonton, Alberta, Mayfield Common is a dominant new format centre now anchored by Save-On-Foods, Winners, HomeSense, Office Depot and Sport Chek. The 479,180 square foot centre has undergone significant changes in the past two years including the conversion of a former Wal-Mart to a Winners, HomeSense and X/S Wares. The redevelopment also included the addition of The Shoe Company, Liz Claiborne, Roots and other national tenants. An additional, and new, 18,900 square feet is in the process of being completed. The 70% interest purchased by Sun Life Assurance Company of Canada was acquired by CIBC Capital Partners in 2003 prior to RioCan undertaking the redevelopment of this property, with the intention of disposing it upon completion. RioCan will retain full responsibility for the management and leasing of the property.

Philip Gillin, Vice-President of Real Estate of Sun Life Assurance Company of Canada, said, "RioCan has done an outstanding job in creating an attractive and diverse merchandise mix at Mayfield Common. This acquisition allows us to increase our exposure to the high growth retail sector in Edmonton and will be an excellent addition to our investment portfolio."

Edward Sonshine, Q.C., President & CEO of RioCan, said, "Mayfield Common is an excellent example of how RioCan continues to focus on adding value to its properties. We are excited to be forming a relationship with Sun Life Financial. Wal-Mart's departure from the centre enabled us to unlock significant value in this well-located property and to transform it into a stable, national-retailer dominated property that will continue to have reliable and growing cash flow well into the future."

About RioCan

RioCan's purpose is to deliver to its unitholders stable and reliable cash distributions, which continuously increase over time. RioCan is Canada's largest real estate investment trust with total assets of approximately $4.1 billion. It has ownership interests in a portfolio of 186 retail properties across Canada containing an aggregate of 46 million square feet, including partners' and shadow anchors' interests.

About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2005, the Sun Life Financial group of companies had total assets under management of $366 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.

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