Cedar Shopping Centers Announces Receipt of Additional $12.6 Million in Proceeds From Transfer of Property to Its Joint Venture With RioCan

PORT WASHINGTON, N.Y., May 26 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced the completion of the transfer of the Loyal Plaza Shopping Center in Williamsport, Pennsylvania to the existing joint venture between Cedar (20%) and RioCan Real Estate Investment Trust (TSX: REI.UN) ("RioCan") (80%).  

Cedar received from RioCan for its 80% interest, cash proceeds of approximately $12.6 million, which were used to pay down the Company's secured revolving credit facility for stabilized properties of $285 million, the outstanding balance of which, subsequent to such payment, is now approximately $84 million.  

Loyal Plaza is a 100%-leased 294,000 sq. ft. shopping center, of which principal tenants include a 103,000 sq. ft. Kmart and a 67,000 sq. ft. Giant Food Stores supermarket.  Additional tenants include Staples, Rite Aid, Western Auto Supply, Pennsylvania Liquor Control Board, Williamsport National Bank, Dollar Tree, Fashion Bug, Hallmark, Olympia Sports, Radio Shack, Rent-A-Center and others.  

The property was valued at approximately $27 million for purposes of the transfer to the joint venture and is subject to a loan of approximately $12.5 million due June 2011.  The parties expect to arrange new financing for the property at that time at 50-60% loan-to-value.

The transfer represents the last of the seven properties, previously 100% owned by Cedar, to be transferred to the Cedar/ RioCan joint venture.  

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.

SOURCE Cedar Shopping Centers, Inc.