Oct. 26, 2009 (PR Newswire) -- PORT WASHINGTON, N.Y. Oct. 26 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. ("Cedar" or the "Company") (NYSE: CDR) today announced it has entered into definitive agreements with RioCan Real Estate Investment Trust (TSX: REI.UN) of Toronto, Canada ("RioCan") which provide for the following:

--  RioCan will make a $40 million private placement investment of 6,666,666
shares of Cedar common stock at $6.00 per share ("Private Placement")
which is conditioned on approval by the NYSE that is expected to occur
within 10 days;
--  Cedar will grant to RioCan warrants to purchase 1,428,570 shares of
Cedar common stock, at an exercise price of $7.00 per share, exercisable
over a period of two years;
--  Cedar and RioCan will enter into an 80% (RioCan) and 20% (Cedar) joint
venture for seven supermarket-anchored properties presently owned by
Cedar ("Existing Property Joint Venture");
--  Cedar and RioCan will enter into an agreement to acquire primarily
supermarket-anchored properties in northeast and mid-Atlantic states
during the next two years in amounts anticipated at up to $500 million
in such 80% (RioCan) and 20% (Cedar) joint venture format ("Future
Property Joint Venture"); and

--  Cedar and RioCan will enter into a standstill agreement with respect to
RioCan's ownership of Cedar's common shares for a period of three years.

"We expect the great financial strength of RioCan and its commitment to our Company to be beneficial for both companies in the coming years," commented Leo Ullman, CEO of Cedar. "We believe that this important investment in our Company will lead to the creation of meaningful added value for the benefit of shareholders as we move forward. We have been impressed by RioCan and its management team led by Ed Sonshine. Through many meetings and a great deal of time spent by RioCan with us in its due diligence process, we have come to recognize great symmetry in our conservative approaches to our respective property portfolios at every level of our respective operations."

Ed Sonshine, CEO of RioCan, stated, "We are delighted to have been able to conclude the private placement and joint venture arrangements with Cedar Shopping Centers. We have been looking to establish a platform in the United States for future growth of our company and we have been greatly impressed with Cedar's management team, the quality and stability of its property portfolio, and its demonstrated ability to expand and enhance that portfolio.