RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

September 29, 2005 09:31 ET

RioCan Real Estate Investment Trust Announces Completion Of $200 Million Commitment For RioCan Retail Value Limited Partnership

TORONTO, ONTARIO--(CCNMatthews - Sept. 29, 2005) - RioCan Real Estate Investment Trust ("RioCan")(TSX:REI.UN) today announced that it has now committed the full capital resources of the RioCan Retail Value Limited Partnership (the "Partnership") and will complete the Investment Period for the Partnership later this year.

Over the course of the Investment Period the Partnership has invested in 12 centres aggregating approximately 3.4 million square feet. Two properties have already been sold achieving an internal rate of return, after taking into account incentive fees payable to RioCan, in excess of 30%. Under the terms of the Partnership Agreement, the Holding Period will commence later this fall and is set at a maximum of four years, unless all partners unanimously agree to extend.

Edward Sonshine, Q.C., President & CEO of RioCan, said, "We are extremely pleased that we have been able to complete the full commitment of the Partnership capital a full year prior to the permitted three years. We are confident that the portfolio which has been assembled by RioCan on behalf of the Partnership will continue to generate superior returns."

About the Partnership

The Partnership was formed in August 2003 by RioCan, the Teachers Insurance and Annuity Association - College Retirement Equities Fund ("TIAA-CREF"), and the Ontario Municipal Employees Retirement System ("OMERS"). The participants committed a total of $200 million of capital to the Partnership. Since its inception, the Partnership has acquired 12 underperforming shopping centres in Canada which had potential for significant value-added, redevelopment or repositioning opportunities. To date, two properties have been sold and the remainder of these assets will be sold over a period of four years. RioCan is using its expertise in redevelopment and leasing to improve the cash flow quality and liquidity of the properties acquired.

About TIAA-CREF

The Teachers Insurance and Annuity Association - College Retirement Equities Fund group of companies (TIAA-CREF), with more than US$300 billion in assets under management, is a national financial services leader and the premier retirement system for higher education and research employees. Further information can be found at http://www.tiaa-cref.org.

About OMERS

Ontario Municipal Employees Retirement System is one of Canada's largest pension funds and provides secure retirement benefits to almost 340,000 active and retired members on behalf of over 900 local government employers across the province. Since it began, OMERS has grown into one of the largest, most competitive and cost-effective pension plans in Canada, managing more than $32 billion in net investment assets.

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 a total market capitalization of approximately $6.6 billion. It has ownership interests in a portfolio of 198 retail properties, including eight under development, across Canada containing an aggregate of 46.5 million square feet, including partners' and shadow anchors' interests.



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