RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

May 31, 2005 07:58 ET

RioCan Real Estate Investment Trust Announces Agreement To Sell $182 Million Enclosed Mall Portfolio To Retrocom Mid-Market REIT

TORONTO, ONTARIO--(CCNMatthews - May 31, 2005) - RioCan Real Estate Investment Trust ("RioCan")(TSX:REI.UN) today announced that it has entered into an agreement with Retrocom Mid-Market REIT ("Retrocom") to sell it seven enclosed mid-market mall shopping centres for a purchase price of $182 million.

The seven properties, totaling over 1.8 million square feet, in this enclosed mall portfolio include: South Hill Mall, Prince Albert, Saskatchewan; Southland Mall, Regina, Saskatchewan; Town N Country Mall, Moose Jaw, Saskatchewan; Elgin Mall, St. Thomas, Ontario; Mountainview Mall, Midland, Ontario; Orangeville Mall, Orangeville, Ontario; and Plaza LaSarre, LaSarre, Quebec.

As part of the agreement, Retrocom will assume the existing mortgages in the approximate amount of $90 million and RioCan will receive a secured convertible debenture in the amount of $30 million for a term of three years at an interest rate of 4.5%. The balance of the purchase price will be paid in cash.

This transaction is conditional upon: i) satisfactory due diligence by Retrocom, which is substantially complete; and ii) Retrocom will require unitholder approval for the transaction and will hold its unitholder vote at its annual meeting on June 24, 2005. Closing of the sale will be within 20 days following unitholder approval of the transaction.

RioCan will perform all property management functions for the portfolio for a period of three years after completion of the sale.

About Retrocom

Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which will focus on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows. Further information can be found at

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.

Contact Information