RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

December 11, 2006 09:49 ET

RioCan Real Estate Investment Trust Announces Completion and Financing of RioCan Centre Kingston

TORONTO, ONTARIO--(CCNMatthews - Dec. 11, 2006) - RioCan Real Estate Investment Trust ("RioCan")(TSX:REI.UN) is pleased to announce that it has completed construction and entered into long term financing arrangements for RioCan Centre Kingston.

This shopping centre was expanded by the construction of an additional 235,000 square feet on lands adjacent to the existing centre. Including the retailer owned Home Depot store, RioCan Centre in Kingston, Ontario now consists of over 750,000 square feet occupied by many of Canada's finest retailers. It houses the only stadium seating theatre in Kingston, operated by Cineplex, and includes such retailers as Winners, Old Navy, Sears, Michaels, HomeSense, Shoe Company, Mexx, Urban Planet, The Brick, Home Outfitters, Best Buy and PETsMART.

RioCan has entered into a long term financing on the expansion and at the same time redone the existing financing on phase one of the centre, which was due to mature in September 2007 and which currently carries an interest rate of 6.68%. On completion of the new financing arrangement, which is expected to occur at the end of January 2007, the entire property will be subject to a new ten year mortgage at an effective interest rate of about 4.95% with a principal amount of $90,400,000.

Edward Sonshine, Q.C., President and Chief Executive Officer of RioCan, said, "This project, of which RioCan is the 100% owner, is representative of our strategy of owning the dominant power centre in secondary markets while focusing most of our efforts on Canada's six major markets. By securing in long term financing on this property, in the current advantageous interest rate climate, we have assured many years of solid and growing cash flow from this property."

About RioCan

RioCan is Canada's largest real estate investment trust with a total market capitalization of approximately $8 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 204 retail properties, including 8 under development, containing an aggregate of over 50.7 million square feet. For further information, please refer to RioCan's website at http://www.riocan.com/.

Contact Information

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