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RioCan Real Estate Investment Trust Announces $286 Million Acquisition Transaction With First Pro Shopping Centres.

Business Editors


RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) today announced that it is acquiring a 100% interest in a portfolio of nine shopping centres and a 50% interest in an additional shopping centre all from First Pro Shopping Centres ("First Pro"). The total purchase price is $286 million for the ten centres, which aggregate 2.4 million square feet.

The ten shopping centres being acquired are:

1960 Eglinton Avenue East, Toronto, Ontario Ajax Wal-Mart Centre,

Ajax, Ontario First Warden Shopping Centre, Scarborough, Ontario

Laval Wal-Mart Centre, Laval, Quebec (50% interest) Leamington

Wal-Mart Centre, Leamington, Ontario Niagara Falls Shopping

Centre, Niagara Falls, Ontario Orangeville Fairgrounds,

Orangeville, Ontario Orangeville Mall, Orangeville, Ontario Sainte

Foy Wal-Mart Centre, Sainte Foy, Quebec Trenton Wal-Mart Centre,

Trenton, Ontario

Taken together, these ten shopping centres, which boast an overall 99% occupancy rate, derive 94% of their income from anchor and national tenants. Wal-Mart, which anchors eight of the ten shopping centres, contributes 29% of the portfolio income.

Edward Sonshine, Q.C., President & CEO of RioCan said "We are extremely pleased to be acquiring these high quality centres, which we have been able to do through our relationship with First Pro. These acquisitions include buildout and expansion opportunities totalling over 225,000 square feet of ancillary retail space which we expect can be completed over the next 12 to 18 months. These acquisitions enhance the position of Wal-Mart as RioCan's largest revenue source while increasing significantly the proportion of its income derived from newly constructed new format retail."

Mitchell Goldhar, President and CEO of First Pro said "This sale of recently completed shopping centres illustrates the synergies that exist in the relationship between First Pro and RioCan. Through the development of centres such as these, First Pro fulfills it's mandate of bringing value to Canadian consumers."

About RioCan

RioCan's purpose is to deliver to its unitholders stable and reliable cash distributions, which continuously increase over time.

RioCan is Canada's largest real estate investment trust. RioCan has total assets of over $3 billion consisting of ownership interests in a portfolio of 152 retail properties across Canada containing an aggregate of well over 23 million square feet of gross leasable area. RioCan derives about 77.3% of its gross revenue from national and anchor tenants with no one tenant providing more than 5.5% of gross revenue. RioCan's largest tenant is Wal-Mart and 14.1% of RioCan's revenue is provided by food supermarkets.

About First Pro

First Pro Shopping Centres is Canada's largest and most-active retail developer. First Pro is committed to bringing value to Canadian communities through a large-scale, unenclosed shopping centre format that is adapted to each market it is located in. The Company, which opens a new shopping centre every three to four weeks, is currently managing and developing a national portfolio of over 140 First Pro Shopping Centres. These centres are strategically located in every major market across Canada, with the majority anchored by a Wal-Mart store. First Pro plans to open new Wal-Marts on August 22 in Montreal, QC, Mount Pearl, NF and Cobourg, ON; on October 3, in Etobicoke, ON and Woodstock, ON, on November 14, in Prince George, BC and Calgary, AB and on January 30, 2003 in London, ON, Burlington, ON and Edmonton, AB. First Pro Shopping Centres contributes to both national and local causes through We're For Kids! a charitable corporate giving program.
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Publication:Business Wire
Geographic Code:1CANA
Date:Aug 7, 2002
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