Millcroft Shopping Centre is a 371,000-sf unenclosed retailproperty that was constructed about five years ago and is about 97%leased. RioCan, which assumed a $13.5-million mortgage as part ofthe acquisition price, will be the asset and property manager forthe joint venture. All told, RioCan now has ownership interest in169 properties across Canada.

The retail center is anchored by a 116,000-sf Zellers departmentstore, a 60,000-sf Ultra Food & Drug (A&P) supermarket anda 52,000-sf Canadian Tire outlet. Other national tenants includeLCBO, Mark's Work Wearhouse, Shoppers Drug Mart, Brewers Retail andEast Side Mario's restaurant. The center has entitlement for a30,000-sf expansion.

RioCan president/CEO Edward Sonshine says the acquisition isaligned with the company's growth strategy of acquiring highquality retail centers with institutional joint venture partners"so as to enhance our equity returns through fee income." As well,Sonshine says he expects to enhance cash flow form the property byfinding tenants for existing vacancies and by adding and leasing upan additional 30,000 sf of space.

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