RioCan Real Estate Investment Trust
TSX : REI.UN

RioCan Real Estate Investment Trust

July 21, 2008 12:34 ET

RioCan Real Estate Investment Trust Announces New Partner at Quartier DIX30

TORONTO, ONTARIO--(Marketwire - July 21, 2008) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced a new partner at Quartier DIX30. Devimco Inc. ("Devimco") has completed the sale of 40% of its original ownership to 2946-8964 Quebec Inc. ("Hydro Quebec Pension Fund") resulting in a restructuring of the co-ownership. As part of this restructuring, the option of Devimco to require RioCan to purchase its 50% co-ownership interest has been deleted and no longer exists.

RioCan has been in a 50% ownership position since the beginning of development. The remaining 50% is now jointly owned by Hydro Quebec Pension Fund (20%), the Fonds de placement immobilier BB (15%), the Societe de transport de Montreal Employees Pension Fund (9%) and the City of Quebec Employees Pension Fund (6%). As the manager of Quartier DIX30, RioCan is responsible for all leasing, as well as overall asset and property management.

Over 150 stores and services are now open including a significant fashion component. In addition, Quartier DIX30 features a multitude of service providers and eateries, and an outdoor entertainment area, Place Extasia.

Upon full completion, Quartier DIX30 will comprise over 2.4 million square feet of retail space. It is home to an outstanding lineup of anchors such as Wal-Mart and RONA (both retailer owned), Canadian Tire, Cineplex Odeon, Winners, HomeSense, Staples/Business Depot, Indigo, SkySpa, Gold's Gym, JYSK, Pier I Imports, as well as Hotel Alt, Theatre L'Etoile and an arena for the Montreal Canadian Hockey Club (all three independently owned).

Edward Sonshine, Q.C., President and CEO of RioCan, said, "We are gratified that the ownership of this property has been stabilized and are pleased with the partnership addition of Hydro Quebec Pension Fund. It is rewarding that a pension fund of this caliber has confidence in RioCan and our capabilities as Quartier DIX30's asset and property manager."

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.

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", "plans" 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: an increasing divergence in the general economy between eastern and western Canada; a less robust 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 and accelerating 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
    Rags Davloor
    Senior Vice President & CFO
    (416) 642-3554
    Website: www.riocan.com