RioCan Real Estate Investment Trust Provides an Update on Disposition Pipeline

RioCan Real Estate Investment Trust (RioCan) is pleased to provide an update on the status of RioCan's disposition pipeline. RioCan has completed the sale of one retail property in Windsor, Ontario and currently has four properties in Ontario, Quebec and New Brunswick that are under contract where conditions have been waived. RioCan has a further five properties that are currently under various stages of negotiations to sell.

RioCan has four properties where purchase and sale agreements have been signed and conditions have been waived with two purchasers. The aggregate gross sale price for these four properties is approximately $363.8 million at a weighted average capitalization rate of approximately 5.9%. In connection with the sales, the purchasers (separately) will assume the in place mortgage financing of approximately $66.9 million in aggregate that carry a weighted average interest rate of 5.4%.

In March 2013, RioCan completed the sale of St. Clair Beach Shopping Centre, in Windsor, Ontario at a sale price of $10.5 million which equates to a capitalization rate of 7.8%.

"These dispositions are an excellent opportunity for RioCan to realize the value in these properties and redeploy the capital into RioCan's growing enclosed mall and urban portfolio," said Edward Sonshine, CEO of RioCan. "This disposition allows RioCan to recycle the capital into our recent acquisitions without the need to raise additional capital, which we believe will provide stronger long term returns to our unitholders."

The properties sold or under firm contract are:

Property Name

Location

NLA

Purchase Price
(in $millions)

Properties Sold      
St. Clair Beach Shopping Centre Windsor, ON 76,001 $10.5
Properties Under Firm Contract      
RioCan Ste. Foy Quebec City, QC 525,787  
Mega Centre Lebourgneuf Quebec City, QC 456,761  
Wheeler Park Moncton, NB 271,973  
Subtotal      $301.0
RioCan Thunder Bay Thunder Bay, ON 334,430 $62.8
Total Sold and Under Firm Contract   1,666,315 $374.3

  The aggregate IFRS value for these five assets as at December 31, 2012 was $364.9 million.

RioCan also has five properties located in Ontario and Quebec that are in various stages of negotiations that, if completed, represent additional asset sales of approximately $44.4 million in total. RioCan is under no obligation to proceed with such proposed dispositions which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.

on April 15, 2013