RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

March 16, 2009 11:18 ET

RioCan Real Estate Investment Trust Announces Completion of Acquisition of Six Property Grocery-Anchored Quebec Portfolio

TORONTO, ONTARIO--(Marketwire - March 16, 2009) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has completed the acquisition of the portfolio of six grocery-anchored properties located in the greater Montreal area totaling approximately 454,000 square feet, as previously announced on January 22, 2009. The purchase price for the portfolio was $67.5 million.

In connection with the purchase, RioCan jointly acquired four of the properties with a private investor on a 50-50 basis. As a result, RioCan's interest in the properties is 332,000 square feet and its net purchase price is $47.5 million.

Concurrent with the closing, RioCan arranged financing on two of the properties that were jointly acquired, totaling approximately $13.8 million at an average interest rate of 6.91% for ten-year terms. RioCan expects to finalize financing commitments for the remaining four properties shortly.

"The portfolio features six grocery-anchored shopping centres with a total occupancy of 99.04%, with long-term grocery leases, which provides RioCan with a solid revenue stream," said Edward Sonshine, Q.C., President and CEO of RioCan. "The defensive nature of these assets, given the current volatile economic climate, makes these properties an excellent addition to our portfolio."

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $6.3 billion as at December 31, 2008. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 247 retail properties, including 14 under development, containing an aggregate of over 59 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", "plan" 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: a less robust economic and 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 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
    Edward Sonshine, Q.C.
    President & CEO
    (416) 866-3018
    Website: www.riocan.com