Canada's largest REIT continues to make sizable retail acquisitions.
Toronto-based RioCan REIT announced Tuesday it has agreed to purchase a stake in four retail shopping centres in British Columbia and Alberta for $166 million. Under the deals expected to close at the end of the year, RioCan will purchase malls in Surrey, B.C., and Edmonton in joint ventures with CPP Investment Board and Sun Life, respectively.
RioCan will co-own Grandview Corners shopping Centre in Surrey and and the Edmonton West Retail Centre. The trust will hold 100% interests in retail centres in Lethbridge and Calgary.
“These four centres represent an excellent addition to RioCan's core portfolio and provide an opportunity to acquire a number of strategic assets while expanding our important relationships with CPPIB and Sun Life,” said Edward Sonshine, RioCan's president and CEO, in a news release.
With credit markets loosening, RioCan has arranged a five-year conventional first mortgage financing of $113 million whereby it will cover $94.5 million at a rate expected to be in the 5% range.
Last month, RioCan announced that it will spend $170 million on eight Canadian retail properties. The properties range from Ottawa to Winnipeg to Fort McMurray and offer a healthy 7.9 per cent cap rate.The move came after RioCan agreed to purchase seven grocery-anchored properties in the Northeastern U.S. as part a joint venture with U.S.-based Cedar Shopping Centers Inc. for $141 million.
Showing posts with label Edward Sonshine. Show all posts
Showing posts with label Edward Sonshine. Show all posts
Wednesday, December 2, 2009
Tuesday, October 27, 2009
Canada's largest REIT begins U.S. foray
RioCan's anticipated foray into the U.S. commercial real estate market came to fruition Monday.
The Canadian REIT announced it has agreed to acquire acquire shopping malls in the northeastern and Mid-Atlantic states as well as a minority stake in a U.S. developer for $181 million US. RioCan, Canada's largest shopping mall owner, has struck definitive agreements with Cedar Shopping Centers Inc., to take an equity stake in the Port Washington, N.Y. real estate investment trust, owner of 124 shopping centres, The Canadian Press reported.
RioCan and the U.S. firm will form a joint venture with the Canadian REIT owning 80 per cent of the assets. Continuing the emphasis on food-and-drug-based assets, the partners' first properties are seven grocery store-anchored shopping centres in Massachusetts, Pennsylvania and Connecticut currently owned by Cedar.
RioCan has also agreed to take a 15-per-cent stake in Cedar that comprises 6.7 million shares and 1.4 million warrants of the U.S. company. The Canadian REIT will invest $181 million, furnishing $106 million in net equity and assuming $75 million in mortgage debt on properties.
“RioCan's objective is to take a measured and defensive approach to investment in the U.S. market,” said president and CEO Edward Sonshine.
The announcement coincided with RioCan's third-quarter report, which included a profit of $28.4-million or 12 cents per unit for the quarter ended Sept. 30 compared with a profit of $40.9 million or 19 cents per unit a year ago.
Cedar said the two companies expect to acquire up to $500-million worth of supermarket-anchored properties in the northeast and mid-Atlantic states in the next two years.
RioCan is Canada's largest REIT with a total capitalization of $7.8-billion (Canadian) and 247 retail properties, including 13 under development.
The Canadian REIT announced it has agreed to acquire acquire shopping malls in the northeastern and Mid-Atlantic states as well as a minority stake in a U.S. developer for $181 million US. RioCan, Canada's largest shopping mall owner, has struck definitive agreements with Cedar Shopping Centers Inc., to take an equity stake in the Port Washington, N.Y. real estate investment trust, owner of 124 shopping centres, The Canadian Press reported.
RioCan and the U.S. firm will form a joint venture with the Canadian REIT owning 80 per cent of the assets. Continuing the emphasis on food-and-drug-based assets, the partners' first properties are seven grocery store-anchored shopping centres in Massachusetts, Pennsylvania and Connecticut currently owned by Cedar.
RioCan has also agreed to take a 15-per-cent stake in Cedar that comprises 6.7 million shares and 1.4 million warrants of the U.S. company. The Canadian REIT will invest $181 million, furnishing $106 million in net equity and assuming $75 million in mortgage debt on properties.
“RioCan's objective is to take a measured and defensive approach to investment in the U.S. market,” said president and CEO Edward Sonshine.
The announcement coincided with RioCan's third-quarter report, which included a profit of $28.4-million or 12 cents per unit for the quarter ended Sept. 30 compared with a profit of $40.9 million or 19 cents per unit a year ago.
Cedar said the two companies expect to acquire up to $500-million worth of supermarket-anchored properties in the northeast and mid-Atlantic states in the next two years.
RioCan is Canada's largest REIT with a total capitalization of $7.8-billion (Canadian) and 247 retail properties, including 13 under development.
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