TORONTO-RioCan Real Estate Investment Trust has agreed topurchase two Walmart anchored retail centers in Ontario and Quebecfor $102 million, at a cap rate of 6.65%. The total square footageof the purchase is 558,881 square feet.

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The two centers are the Gatineau Walmart center in Gatineu,Quebec and Hamilton Southeast Walmart in Hamilton, Ontario. Bothproperties are more than 98% occupied.

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The 287,765-square-foot Gatineau site, completed in 2006, isanchored by a 158,000-square-foot Walmart that has a lease thatruns through 2026. Other tenants include GolfTown, Dollarama,BouClair and Tommy Hilfiger. The site includes 27,000 square feetunder construction, and the potential for another 115,000 squarefeet.

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The 271,117-square-foot Hamilton site includes a172,500-square-foot Walmart that is leased through 2028. The othertenant space construction is almost complete, and will includeStaples and Winners, and shadow-anchor Canadian Tire. The siteincludes the potential for another 78,000 square feet ofdevelopment.

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Edward Sonshine, president and CEO of RioCan, said the twocenters are in high-growth urban markets. “The acquisition of thesetwo high-quality properties enables RioCan to secure a long-termstable cash flow stream with a high-quality tenant such as Walmart,which is RioCan’s third largest tenant by rental revenue,” he saidin a statement. The seller was undisclosed.

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