RioCan Real Estate Investment Trust Announces Completion of $100 Million Public Offering of Cumulative Rate Reset Preferred Trust Units, Series A

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2011) -

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RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has successfully completed the issuance of 4 million Cumulative Rate Reset Preferred Trust Units, Series A (the "Series A Units") at a price of $25 per unit for aggregate gross proceeds of $100 million. The underwriters have also been granted an over-allotment option, exercisable in whole or in part within 30 days following closing which, if fully exercised, would result in the issuance of an additional 1 million Series A Units issued at a price of $25 per unit for additional gross proceeds of $25 million. The underwriting syndicate for the offering was co-led by RBC Capital Markets, Macquarie Capital Markets Canada Ltd. and Scotia Capital. 

The offering was made under RioCan's amended and restated base shelf prospectus dated December 21, 2010. The terms of the offering are described in a prospectus supplement dated January 19, 2011, which was filed with Canadian securities regulators. 

"The completion of this offering adds a new form of capital for RioCan that, used judiciously, enhances our ability to remain competitive in Canada and the United States for acquisitions," said Edward Sonshine, Q.C. President and CEO of RioCan. "We view the use of Preferred Units as a complementary addition to RioCan's capital structure. One that provides investors with a competitive yield and one that enhances RioCan's financial flexibility and improves RioCan's already strong balance sheet."

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $10.1 billion as at December 31, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 296 retail properties, including 10 under development, containing an aggregate of over 66 million square feet. RioCan owns an 80% interest in 31 grocery anchored and new format retail centres in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centres, Inc., a real estate investment trust focused on supermarket-anchored shopping centres and drug store-anchored convenience centres located predominantly in the Northeastern United States. For further information, please refer to RioCan's website at www.riocan.com.