TORONTO, ONTARIO and NEW HYDE PARK, NEW YORK--(Marketwired - Dec. 17, 2015) - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) and Kimco Realty Corp. ("Kimco") (NYSE:KIM) announce that RioCan has completed the second phase of the previously announced transaction to purchase Kimco's interest in a collection of 22 Canadian properties selected by RioCan. The remaining three properties were acquired at a purchase price of $238 million, and RioCan assumed Kimco's share of the existing in place debt of $104 million.
Additionally, in a separate transaction RioCan has acquired Kimco's 50% interest in Tillicum Centre, a 468,533 square foot shopping centre in Victoria, BC at a net purchase price of $58.9 million (at a 50% interest) along with possible future consideration to Kimco based on additional potential residential density. In connection with the purchase, RioCan assumed Kimco's interest in the in place mortgage financing of $32.5 million (at a 50% interest) that carries an interest rate of 2.9% and matures in May 2018. RioCan estimates that the acquisition is expected to generate incremental NOI of approximately $3.6 million on an annualized basis.
Tillicum Centre is anchored by Save-On-Foods, Cineplex, London Drugs, and Winners. Lowe's has assumed 120,000 square feet that was previously leased by Target Canada. Other national tenants at the centre include Old Navy, Dollar Tree, and Ardene. In addition, Tillicum Centre has municipal approval for the potential development of a multi-storey residential development/intensification at the site.
The partners continue to market for sale a second group of eight retail assets, which are in various stages of marketing. There remains a third group of three transitional properties that were previously occupied by Target, which will be dealt with at a future date.
About RioCan
RioCan is Canada's largest real estate investment trust with a total enterprise value of approximately $15.1 billion as at September 30, 2015. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 354 retail properties containing approximately 78 million square feet, including 49 retail properties containing 13 million square feet in the United States as at September 30, 2015. RioCan's portfolio also includes 16 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com .
About Kimco
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is North America's largest publicly traded owner and operator of open-air shopping centers. As of September 30, 2015, the company owned interests in 710 shopping centers comprising 105 million square feet of leasable space across 39 states, Puerto Rico, and Canada. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com , the company's blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty .
