RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust

February 25, 2008 10:38 ET

RioCan Real Estate Investment Trust Announces Closing of Final Phase of Quartier DIX30

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2008) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced the closing of the last originally contemplated phase of Quartier DIX30, Canada's first lifestyle centre, located in Brossard, Quebec, at the intersection of Highways 10 and 30. RioCan originally entered into a firm agreement with Devimco Inc. ("Devimco") to become equal partners in the development of this property in January 2005 when the project was a greenfield site.

Upon full completion, Quartier DIX30 will comprise over 1.9 million square feet of retail space and boast over 155 stores and services. It is home to an outstanding lineup of anchors such as Wal-Mart and RONA (both retailer owned), Canadian Tire, Cineplex Odeon, Winners, HomeSense, Staples/Business Depot, Indigo, SkySpa, Gold's Gym, JYSK, Pier I Imports, as well as Hotel Alt, an avant garde boutique hotel designed by the Germain Group, a 900-seat live theatre and concert hall, plus Canada's top fashion retailers and restaurants.

The centre creates an intimate, neighbourhood-like feeling within a world-class shopping and entertainment district on the south shore of Montreal. Quartier DIX30 features an outdoor entertainment area, Place Extasia, with a number of adjacent restaurants and cafes. The centre has over 5,000 free parking spaces, of which approximately 1,000 spaces are located in the underground parkade.

Since September 2006, the development has phased in a number of openings and now over 130 stores and services are open including a significant fashion component that highlights such retailers as H&M, American Eagle Outfitters, Sports Experts, BCBG, Calvin Klein, Esprit, Jacob, La Vie En Rose, Roots, Tommy Hilfiger, Mexx, RW & CO., Tristan and America, West Coast, Costa Blanca, Reitmans, Urban Planet, Urban Behaviour, Browns, Nine West and Feet First. In addition to these and many other national retailers, Quartier DIX30 includes a multitude of service providers and eateries. Additional openings scheduled for 2008 include Future Shop and Theatre L'Etoile, the live theatre and concert hall.

Devimco, a pioneer in the development of power centres in Quebec, has been responsible for Quartier DIX30's development and leasing since its inception. RioCan has been in a 50% ownership position since the beginning of development. The remaining 50% is jointly owned by the Fonds de placement immobilier BB (25%), the Societe de transport de Montreal Employees Pension Fund (15%) and the City of Quebec Employees Pension Fund (10%). As the manager of Quartier DIX30, RioCan is responsible for all new leasing deals, renewal agreements and overall asset and property management.

Even in the current tight credit market environment, RioCan was able to successfully complete long-term financings for this project totalling over $191 million, with a weighted average interest rate of 5.33%. Over $107 million of the financing was negotiated in December.

Edward Sonshine, Q.C., President and Chief Executive Officer of RioCan, said, "We are pleased to be closing the last phase of the original Quartier DIX30, almost three years after we heartily endorsed the vision of Devimco for this site. Devimco has done an exceptional job in developing and leasing Canada's first lifestyle centre. It is truly a remarkable shopping and entertainment destination that customers and tenants will enjoy for years to come."

About RioCan

RioCan is Canada's largest real estate investment trust with a total market capitalization of approximately $7.6 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 214 retail properties, including 12 under development, containing an aggregate of over 55 million square feet. For further information, please refer to RioCan's website at

Contact Information

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