RioCan and Kimco Jointly Announce Agreement for RioCan to Acquire Kimco's Interest in Two Canadian Properties and Kimco's Purchase of RioCan's Interest in One U.S. Property - Seite 2

Transaction Details

RioCan will acquire Kimco's 50% interest in Brentwood Village in Calgary, Alberta and Grand Park in Mississauga, Ontario at a total purchase price of $87.5 million net of in place debt of $8.0 million representing an equity commitment of $79.5 million by RioCan. RioCan will, in turn, sell its 80% interest in Montgomery Plaza in Fort Worth, Texas to Kimco at a sale price of US$58.3 million net of in place debt of US$23.6 million representing equity of US$34.7 million with the remaining purchase price to be paid in cash by RioCan.

Details of the Properties Included in the Transaction

Brentwood Village

Brentwood Village, located in Calgary, Alberta, is a grocery anchored shopping centre containing 294,310 square feet of gross leasable area. The shopping centre's anchor tenants include Safeway, London Drugs, and Sears Whole Home. Other national retailers at the site include Pier 1 Imports, Sleep Country, Penningtons, TD Canada Trust, Bank of Montreal and Harvey's. Approximately 50,000 square feet of retail space was demolished in 2011 and the air rights were sold to a residential developer who subsequently constructed four condo towers. The residential towers include retail podiums consisting of 39,510 square feet that are owned and leased by RioCan. RioCan will acquire Kimco's 50% interest at a purchase price of $65.1 million which equates to a capitalization rate of 5.25% on in place income and an additional $4.0 million as consideration for the potential residential density and existing podium retail space. The property will be acquired free and clear of financing. The property is located near Calgary's rapid transit line, hospitals, and the University of Calgary.

Grand Park

RioCan Grand Park, located in Mississauga, Ontario, is a 118,637 square foot new format retail property. The centre contains a mix of national tenants that includes Winners and Shoppers Drug Mart. RioCan will acquire Kimco's 50% interest at a purchase price of $18.4 million which equates to a capitalization rate of 6.0%. In connection with the purchase, RioCan will assume Kimco's 50% interest on the in place debt of $8.0 million (at 50%) which carries a weighted average interest rate of 6.35% and is scheduled to mature in 2019 and 2024 subject to a mark to market adjustment.