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TORONTO-RioCan Real Estate Investment Trust purchased its partner’s interests in the first phase of RioCan Centre Vaughan. With the purchases from Strathallen Capital Corp. and Trinity Development Group, RioCan now owns 100% of the project’s first phase. Additionally, through the deal, RioCan acquired an additional 10% interest in the RioCan Beacon Hill project, bringing its total interest to 50%. The deal was estimated to cost RioCan $38 million.

“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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