RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

November 29, 2010 09:01 ET

RioCan Real Estate Investment Trust Provides Update on Financing Activities in the US

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - RioCan Real Estate Investment Trust (TSX:REI.UN) ("RioCan") is pleased to provide an update on its ongoing financing platform in the US. RioCan has recently completed the financing of six properties known as the Edens and Avant portfolio and Cross Keys Place which were acquired in October of this year. Through its joint venture arrangement with Cedar Shopping Centers, Inc. ("Cedar") RioCan has secured first mortgage non recourse financing on these assets.

The properties and the respective amounts of the loans at 100% are:

  • Gettysburg Marketplace (Gettysburg, PA) - US$10.9 million
  • York Marketplace (York, PA) - US$16.1 million
  • Northland Center (State College, PA) - US$6.3 million
  • Marlboro Crossroads (Upper Marlboro, MD) - US$6.9 million
  • Towne Crossing (Midlothian, VA) - US$10.5 million
  • Cross Keys Place (Sewell, NJ) - US$14.6 million

The Cross Keys loan was provided by Bank of America, N.A.; the other five loans were arranged by Goldman Sachs Commercial Mortgage Capital, L.P. In each case, the loans are at par (no fees) and for a term of 10-years with amortization schedules of 30 years. The weighted average interest rate for these six loans is 5.06%. None of the loans are either cross-collateralized or cross-defaulted in any manner and all are non-recourse, subject to normal exceptions.

The closings of the loans resulted in net proceeds to RioCan of approximately US$51.7 million and to Cedar of approximately US$13.2 million. 

In addition to the secured financing on the properties mentioned above, RioCan Holdings has arranged a senior secured line of credit facility for its US joint venture activities with Cedar. The line is in the amount of US$50 million for a term of 12 months with an extension option for an additional 12 months at LIBOR +3% with TD Securities and RBC Capital Markets.

"These financings demonstrate good access to debt capital in the US to finance our American acquisition platform," said Edward Sonshine, Q.C., President and CEO of RioCan. "The ability to also access capital in the US provides a good natural hedge for our financing costs related to our US acquisitions."

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $10.0 billion as at September 30, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 289 retail properties, including 11 under development, containing an aggregate of over 66 million square feet. RioCan owns an 80% interest in 28 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 Centers, 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.

Contact Information

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