Cedar Shopping Centers Announces Contract for Its Joint Venture With RioCan to Purchase Shopping Center for $53 Million

PORT WASHINGTON, N.Y., May 11 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") and RioCan Real Estate Investment Trust (TSX: REI: UN) ("RioCan") today announced that their joint venture (20% Cedar and 80% RioCan) has entered into a definitive contract to purchase Exeter Commons, a 361,000 square foot shopping center located on 37 acres in Exeter Township (greater-Reading), Pennsylvania, approximately 40 miles west of Philadelphia, for $53 million, excluding closing costs and adjustments.  Due diligence has been completed; deposits are non-refundable; closing is expected on or before August 1, 2010.

The property was completed in 2009 and is anchored by a 171,000 square foot Lowe's Home Improvement Center and an 82,000 square foot Giant Food Stores supermarket, both with leases extending to 2029, exclusive of renewal options.  Mid-size anchors include an 18,000 foot Staples and a 14,000 square foot Petco, each with leases extending to 2019, exclusive of renewal options.  The property is 98% leased and is shadow-anchored by a 133,000 sq. ft. Target store, also completed in 2009.  Other in-line tenants include Famous Footwear, Five Below, Sleepy's, Five Guys Hamburgers and Hallmark.  Pad sites include Red Robin, Affinity Bank, Sonic and a Giant fuel service facility.  

The property will be delivered "free and clear" at the closing.  It is expected that property-specific financing will be placed on the property at an estimated level of approximately 60% of the purchase price.  Cedar will manage the property and will be entitled to certain acquisition, financing, property management, leasing, joint venture reporting and construction management fees.

Mike Winters, Cedar's Vice President of Acquisitions, stated, "We are delighted to have been given the opportunity to acquire this newly-developed property in our primary geographic area.  The strong credit tenancies with long leases in stable markets represent the high-quality core properties with which we hope to grow our portfolio with RioCan in coming months and years."  

About Cedar Shopping Centers, Inc.

Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of "bread and butter"® supermarket-anchored shopping centers in coastal mid-Atlantic and New England states. The Company presently owns and operates (both wholly-owned and in joint venture) approximately 13 million square feet of GLA at 119 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years.

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.cedarshoppingcenters.com.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $8.4 billion as at March 31, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 261 retail properties, including 12 under development, containing an aggregate of over 60 million square feet. RioCan owns an 80% interest in seven grocery anchored shopping centres in the United States through its joint venture arrangement with Cedar. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centres and drug store-anchored convenience centres located predominantly in the Northeastern United States. For further information, please refer to RioCan's website at www.riocan.com.

Forward-Looking Statements

Statements made or incorporated by reference in this press release include certain "forward-looking statements".  Forward-looking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express the Company's beliefs, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, expectations, or intentions, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company's control. Certain factors that might cause such differences include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company's market areas in particular; the financial viability of the Company's tenants (including an inability to pay rent, filing for bankruptcy protection, closing stores and vacating the premises); the continuing availability of acquisition, development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital (including the availability of construction financing) in the public and private markets; the availability of suitable joint venture partners and potential purchasers of the Company's properties if offered for sale; changes in interest rates; the fact that returns from acquisition, development and redevelopment activities may not be at expected levels or at expected times; risks inherent in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, changes in governmental regulations relating thereto, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures.

SOURCE Cedar Shopping Centers, Inc.