RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

December 17, 2008 09:02 ET

RioCan Real Estate Investment Trust Announces Acquisition of Site at Clappison's Crossing From Loblaw and Subsequent Land Lease Agreement with Wal-Mart

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2008) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced the acquisition of a 12.25 acre site (the "Site") from Loblaw Properties Limited at Clappison's Crossing, a property RioCan co-owns with Trinity Development Group Inc. ("Trinity") in Flamborough, Ontario. RioCan has entered into a land lease for the Site with Wal-Mart Canada Corp. ("Wal-Mart"). The land lease is for a term of twenty years. Wal-Mart intends to construct a 151,000 square foot Wal-Mart store on the Site.

Clappison's Crossing is a 307,000 square foot new format retail centre being developed as a joint venture with Trinity in Flamborough, Ontario. The centre is currently anchored by Rona, which commenced operations in the fourth quarter of 2007. The centre includes a Bank of Nova Scotia branch, which has also commenced operations. Clappison's Crossing is expected to be substantially complete by the end of the second quarter of 2009.

"RioCan is pleased to have Wal-Mart join Clappison's Crossing. The addition of a major retailer such as Wal-Mart is in keeping with RioCan's ongoing focus on securing the highest quality tenants for our properties. As well, the addition of Wal-Mart and other retailers in the area are creating a new retail node for this part of the GTA," said Edward Sonshine, Q.C., President and CEO of RioCan.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.3 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 237 retail properties, including 16 under development, containing an aggregate of over 58 million square feet. For further information, please refer to RioCan's website at www.riocan.com.

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future events and are based on our estimates and assumptions that are subject to risks and uncertainties, which could cause actual events or results described above to differ materially from the forward-looking statements contained herein. Those risks and uncertainties include risks associated with real property ownership, financing and interest rates, environmental matters and construction. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: an increasing divergence in the general economy between eastern and western Canada; a less robust retail environment than we have seen for the last few years; interest costs to us remain relatively stable; acquisition capitalization rates increase and land costs for greenfield development decrease; a continuing and accelerating trend towards land use intensification in high growth markets; and equity and debt capital markets will continue to provide access to capital to fund at acceptable costs our future growth program and refinance our debts as they mature. Although the forward-looking information contained herein is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • RioCan Real Estate Investment Trust
    Rags Davloor
    Senior Vice President & CFO
    (416) 642-3554
    Website: www.riocan.com