TORONTO, ONTARIO, Nov. 18, 2009 (Marketwire) --
TORONTO, ONTARIO -- (Marketwire) -- 11/18/09 -- RioCan Real Estate Investment Trust (TSX: REI.UN)("RioCan") today announced that it has waived conditions and expects to close on eight retail properties located in Alberta, Ontario, and Manitoba in the fourth quarter of 2009, or in January of 2010. These eight properties will total approximately 1.4 million square feet, of which, RioCan's interest will be approximately 894,000 square feet. The total purchase price for RioCan's interest in these properties is approximately $170 million. National and anchor tenants occupy 82% of the gross leasable area for these eight properties. The weighted average cap rate for these acquisitions is approximately 7.9%.
Properties under firm contract
Summerwood Centre is an 84,279 square foot newly developed grocery and drugstore anchored retail property located in Sherwood Park, Alberta, a suburb east of Edmonton. The property is in the final stages of completion and, as such, occupancy at the property is currently 82%. The vacant space is subject to a head lease to the vendor. Summerwood Centre is anchored by a 41,265 square foot Save-On-Foods and 16,911 square foot Shoppers Drug Mart, as well as other national tenants such as TD Bank and Bank of Montreal. The property is being acquired unencumbered.
The Market at Citadel Village is a 51,028 square foot recently developed drugstore anchored retail property located in St. Albert, Alberta, a suburb northwest of Edmonton. The property is 91.2% occupied and is anchored by a 17,020 square foot Shoppers Drug Mart as well as other national tenants such as HSBC and Bank of Nova Scotia. The vacant space is subject to a head lease to the vendor. The property which was completed in 2008 will be acquired unencumbered.
Timberlea Landing is a 135,802 square foot mixed use property containing office and retail uses as well as 34 residential units located in Fort McMurray, Alberta. The retail and office components of the property are 100% occupied and include tenants such as The Regional Municipality of Wood Buffalo, TD Bank, and Bank of Nova Scotia. The property is being acquired unencumbered.
Wanless Centre is a 103,607 square foot grocery anchored shopping centre located in the GTA market of Brampton, Ontario. The property is 96.3% occupied and is anchored by a 40,475 square foot Food Basics (Metro Inc). Other national tenants include TD Bank, Sleep Country, and Swiss Chalet. The property is being acquired unencumbered.
Chapman Mills Marketplace is a 432,000 square foot shopping centre located in Ottawa, Ontario. The property is anchored by a 130,000 square foot Wal-Mart, a 26,905 square foot Galaxy Cinemas, a 26,240 square foot Winners, and a 25,890 square foot Staples. Other national tenants include Chapters, SportChek, and the Liquor Control Board of Ontario. The property is shadow anchored by Loblaws. RioCan will purchase an additional 12.5% interest in the property which will bring its overall ownership interest to 75%.
Garden City Shopping Centre is a 285,000 square foot enclosed shopping centre located in Winnipeg, Manitoba and is anchored by a 94,267 square foot Canadian Tire and a 26,838 square foot Winners. The property also benefits from a 92,604 square foot shadow anchored Sears department store which is connected to the property and has an interior entrance to the centre. The property is 93.4% occupied.
