PORT WASHINGTON, N.Y., Oct. 22 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced that it has completed the purchase on behalf of the joint venture between Cedar (20%) and RioCan Real Estate Investment Trust of Toronto, Canada (TSX: REI.UN) ("RioCan") (80%), of five primarily supermarket-anchored properties, as previously disclosed, for approximately $91 million, exclusive of closing costs and adjustments. Four of the properties are anchored by Giant Food Stores supermarkets; three of the properties are located in Pennsylvania, one in Maryland and one in Virginia. The properties include Gettysburg Marketplace (Gettysburg, PA), York Marketplace (York PA), Northland Center (State College, PA), Marlboro Crossroads (Upper Marlboro, MD) and Towne Crossings (Midlothian, VA). The gross leasable area of the portfolio is approximately 678,000 sq. ft. The sellers were entities affiliated with the Edens & Avant group of Columbia, South Carolina.
The joint venture expects to arrange 10-year fixed-rate financing on the properties in the amount of $50.6 million (approximately 55% of the purchase price) at a rate of not more than 5%.
Cedar's equity investment at closing was approximately $18.2 million, and RioCan's, approximately $72.8 million. Upon placement of fixed-rate mortgage financing on the properties, approximately 55% of such equity contributions are expected to be refunded to the parties.
Cedar will provide property and financial management, leasing, reporting, financing and construction management services for the properties and has also received certain acquisition fees.
The closings of the purchase of these shopping centers bring the total of properties acquired by the Cedar/RioCan joint venture to approximately $350 million in 2010 to date.
About Cedar Shopping Centers
Cedar Shopping Centers, Inc. is a fullyintegrated real estate investment trust which focuses primarily on the ownership, operation, development and redevelopment of "bread and butter"® supermarketanchored shopping centers in coastal midAtlantic and New England states. The Company presently owns (both exclusively or in joint venture) and manages approximately 15.4 million square feet of GLA at 132 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.
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $10.0 billion as at September 30, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 280 retail properties, including 11 under development, containing an aggregate of over 60 million square feet. RioCan owns an 80% interest in 19 grocery anchored shopping centres in the United States and owns a 14% equity interest in Cedar. For further information, please refer to RioCan's website at www.riocan.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forwardlooking statements include, without limitation, statements containing the words "anticipates", "believes", "expects", "intends", "future", and words of similar import which express our beliefs, expectations or intentions regarding future performance or future events or trends. While forwardlooking 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 forwardlooking statements as a result of factors outside of our 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 our market areas in particular; the financial viability of our tenants (including an inability to pay rent, filing for bankruptcy protection, closing stores and/or 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 our properties if offered for sale; the ability of our joint venture partners to fund their respective shares of property acquisitions, tenant improvements and capital expenditures; 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, costs 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 relet space upon the expiration or termination of current leases and incur applicable required replacement costs; and the financial flexibility of ourselves and our joint venture partners to repay or refinance debt obligations when due and to fund tenant improvements and capital expenditures. For more information regarding risks that may cause our actual results to differ materially from any forward looking statements, please see the discussion under "Risk Factors" contained in the prospectus supplement, the accompanying prospectus and the other information contained in our publicly available filings with the SEC, including our Annual Report on Form 10K for the year ended December 31, 2009. We do not undertake any responsibility to update any of these factors or to announce publicly any revisions to forward looking statements, whether as a result of new information, future events or otherwise.
SOURCE Cedar Shopping Centers, Inc.