"This additional interest in these high quality properties in two of our core markets represents an excellent opportunity for RioCan to add value to our portfolio with a modest cash investment," says Edward Sonshine, president and CEO of RioCan, in a statement.
The RioCan Centre Vaughan project is a 25-acre retail site. The first phase of construction was the development of a 261,714-square-foot retail center. Construction, which completed earlier this year, included a 212,719-square-foot Wal-Mart store. Wal-Mart signed a 20-year lease for the property.
According to a release issued by company executives, "The first phase being acquired has been financed with 5 year mortgage financing arranged by RioCan of $22 million from a major financial institution at an interest rate of approximately 5.6%.
An additional 20,000 square feet will be developed on the site; and both Strathallen and Trinity will maintain their interests in that segment of the project.
In the RioCan Beacon Hill project, RioCan previously had a 40% stake in the company, and has now purchased an additional 10%. The 527,918-square-foot shopping center is located in Calgary. The Canada Pension Plan Investment Board owns the other half of the interest.
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