RioCan REIT has made More Than One Billion Dollars worth of Acquisitions in 2011

RioCan Real Estate Investment Trust provided an update on its acquisitions in Canada and the United States. With the acquisitions included in this release now completed, RioCan has purchased an interest in a total of 38 income properties at an aggregate purchase price of $1.1 billion, at RioCan's interest, at a weighted average capitalization rate ("cap rate") of 6.7% in Canada and the US in 2011. These figures include $29.4 million of earnouts from previous acquisitions at a 7.1% cap rate.

In Canada, RioCan acquired an interest in 24 income properties at an aggregate purchase price of $505.9 million at a weighted average cap rate of 6.4% during 2011. RioCan also paid an additional $19.2 million for earnouts at a weighted average cap rate of 6.8%. In the US, RioCan acquired an interest in 14 income properties at an aggregate purchase price of $565.3 million at a weighted average cap rate of 6.9% in 2011. RioCan also paid an additional $10.2 million for earnouts at a weighted average cap rate of 7.8%. In addition to RioCan's $1.1 billion of income property acquisitions, RioCan completed the acquisition of an additional $70.6 million of development properties in 2011.

"RioCan is very pleased to have accomplished another strong year of acquisition activity, that for the second year in a row has surpassed $1 billion," said Edward Sonshine, President and Chief Executive Officer of RioCan. "We have remained disciplined as we developed our acquisition platform in the US and strengthened RioCan's portfolio in Canada with a number of very high quality properties this past year."

Recent Acquisition Activities - Canada
On December 15, 2011, RioCan completed the acquisition of the Runnymede Portfolio. The Runnymede Portfolio consists of five grocery anchored properties in the Greater Toronto Area. RioCan acquired a 100% interest in five properties containing an aggregate of 360,600 square feet with a weighted average remaining lease term of 4.6 years for $91.2 million, which equates to a cap rate of 6.4%. The five properties have a weighted average occupancy of 99%. RioCan assumed the in-place financing, which totals $15.3 million and carries a weighted average interest rate of 5.5% with maturities in 2014, 2015 and 2022. RioCan purchased the portfolio from the vendor through the assumption of the aforementioned debt and otherwise, entirely through the issuance of exchangeable units, resulting in the issuance of $74.9 million of equity after taking into account the assumed debt. The exchangeable units were issued to the vendor at a price of $25.44 per exchangeable unit based on a volume weig hted average price for the seven-day period ending December 9, 2011, resulting in the issuance of 2,945,320 exchangeable units.


Sage Hill Lands

RioCan had previously announced that it waived conditions pursuant to a purchase agreement for the acquisition of a 32 acre greenfield development site ("Sage Hill Lands") in Northwest Calgary for a purchase price of $31.6 million. RioCan has assigned a 50% interest in the acquisition of the Sage Hill Lands to KingSett Capital, on behalf of its KingSett Canadian Real Estate Income Fund ("KingSett"). Upon completion of this acquisition, which is expected to occur in 2012, RioCan will act as development and property manager on behalf of its partner KingSett. This purchase will represent an expansion of the relationship with its partner, and is the first greenfield development property to be acquired with KingSett. Development of this site is expected to commence in 2013 and once completed, the property is expected to contain 347,000 square feet of retail use.
Recent Acquisition Activities - US
On December 16, 2011, RioCan completed the purchase of the Shoppes at Salem. The property is located along Route 28 in Salem, New Hampshire, approximately 45 kms north of Boston, Massachusetts. The 170,270 square foot property was built in 1999. The centre is 100% occupied and has a weighted average lease term of 7.4 years. The property is occupied by five national retailers, Best Buy, Sports Authority, PetSmart, Michaels, and DSW. RioCan purchased a 100% interest in the property for US$39.9 million, at a 7.0% cap rate. Cedar Shopping Centers, Inc. will provide property management services. RioCan assumed the in place secured debt of US$17.8 million that carries an interest rate of 6.2% and is scheduled to mature in December 2012.


On December 14, 2011, RioCan purchased the Market Street Portfolio. The Market Street Portfolio is comprised of two grocery anchored shopping centres located in Dallas, Texas. RioCan acquired a 100% interest in both properties at an aggregate purchase price of US$29.9 million, which equates to a capitalization rate of 7.6%. Sterling Organization ("Sterling") will manage the properties on behalf of RioCan. In connection with the acquisition, RioCan assumed the in-place financing of US$15.2 million that carries an average interest rate of approximately 6.0% with maturities in 2014 (US$3.3 million), 2024 (US$.8.6 million) and 2023 (US$7.7 million).


The properties comprising the Market Street Portfolio are:
- Market Street at Stonebridge Ranch is a 88,389 square foot grocery anchored centre in McKinney, Texas, located approximately 50 kms north of Dallas. The property, built in 2004, has a weighted average lease term of 9.5 years and is anchored by a Market Street grocery store.
- Market Street at Colleyville is a 72,617 square foot stand-alone Market Street grocery store that is part of a larger retail centre in Colleyville, Texas, a suburb of Dallas. The property, built in 2003, has a remaining lease term of 12.2 years.
Market Street Grocers, which is owned by United Supermarkets, is a Texas-based family owned grocery store chain with 51 stores across Texas. Market Street focuses on everyday grocery items combined with speciality items, whole-health and gourmet items as well as prepared items.
 

on December 19, 2011