RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

July 09, 2008 15:04 ET

RioCan Real Estate Investment Trust Announces Payment of $30 Million Debenture From Retrocom

TORONTO, ONTARIO--(Marketwire - July 9, 2008) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it has received payment for its $30 million secured convertible debenture from Retrocom Mid-Market REIT ("Retrocom"). The debenture bore interest at a rate of 4.5% and arose as partial consideration from the sale by RioCan of seven enclosed mid-market mall shopping centres to Retrocom in 2005.

In addition, RioCan received a financing facilitation fee of $1.75 million from Retrocom in connection with its assistance in negotiating a financing arrangement with The Toronto-Dominion Bank.

RioCan has performed all property management functions for the portfolio since completion of the sale. The seven properties include: South Hill Mall, Prince Albert, Saskatchewan; Southland Mall, Regina, Saskatchewan; Town N Country Mall, Moose Jaw, Saskatchewan; Elgin Mall, St. Thomas, Ontario; Mountainview Mall, Midland, Ontario; Orangeville Mall, Orangeville, Ontario; and Plaza LaSarre, LaSarre, Quebec. As per the original agreement, RioCan's property management contract will terminate on July 31, 2008.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $7.5 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 227 retail properties, including 15 under development, containing an aggregate of almost 59 million square feet. For further information, please refer to RioCan's website at www.riocan.com.

Contact Information

  • RioCan Real Estate Investment Trust
    Rags Davloor
    Senior Vice President & CFO
    (416) 642-3554
    Website: www.riocan.com