RioCan REIT Announces Increase to Previously Announced Series O Senior Unsecured Debenture Issue to $225 Million

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) announced today that it has amended the terms of its previously announced offering of Series O senior unsecured debentures (the "Debentures") to increase the size of the offering from $175 million principal amount of Debentures to $225 million principal amount of Debentures, with no underwriters' option. Closing of this issue is expected to be on or about January 21, 2011.

The Debentures are being sold on a bought deal basis by a syndicate of underwriters co-led by RBC Capital Markets, CIBC and TD Securities. The Debentures will carry a coupon rate of 4.499% and will mature on January 21, 2016.

This offering is being made under RioCan's amended and restated base shelf prospectus dated December 21, 2010. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators.

RioCan will use a portion of the proceeds from the offering to redeem its $180 million 8.33% Series L senior unsecured debentures due April 3, 2014 and the balance for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration requirements.

About RioCan:

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $10.1 billion as at December 31, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 296 retail properties, including 10 under development, containing an aggregate of over 66 million square feet. RioCan owns an 80% interest in 31 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 Centres, 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.