TORONTO, ONTARIO, Oct. 30, 2009 (Marketwire) --
TORONTO, ONTARIO -- (Marketwire) -- 10/30/09 -- RioCan Real Estate Investment Trust (TSX: REI.UN) ("RioCan") today announced it has completed its previously announced equity investment in Cedar Shopping Centers, Inc. ("Cedar"), consisting of the purchase of approximately 6.7 million shares of Cedar common stock at a price of US$6.00 per share and a warrant to purchase an additional approximately 1.4 million shares of common stock at an exercise price of US$7.00 per share. The warrants will be exercisable any time up to two years following today's closing. The equity investment will result in gross proceeds of US$40 million to Cedar, with an additional US$10 million of gross proceeds to Cedar upon exercise of the share purchase warrants.
About Cedar
Cedar is a self-managed real estate investment trust focused on grocery-anchored shopping centres and drug store-anchored convenience centres located predominantly in the North-eastern and Mid-Atlantic states of the United States. Since the company's public offering in October 2003, Cedar has realized significant growth in assets and shareholder value primarily through selective acquisitions. Cedar presently owns and operates approximately 13.2 million square feet of gross leasable area at 124 shopping centre properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. Cedar had a total capitalization of US$1.5 billion as of September 30, 2009.
About RioCan
RioCan is Canada's largest real estate investment Trust with a total capitalization of approximately CDN$7.8 billion as at September 30, 2009. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 247 retail properties, including 13 under development, containing an aggregate of over 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 made regarding the anticipated timing of the closing of the joint venture acquisitions and other statements concerning RioCan's objectives, its 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.
