PORT WASHINGTON, N.Y., Oct. 13 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) today announced that it has closed on the purchase of the Cross Keys Place shopping center in Sewell, New Jersey on behalf of the joint venture between Cedar (20%) and RioCan Real Estate Investment Trust of Toronto, Canada (TSX: REI.UN) ("RioCan") (80%) for approximately $26.3 million, exclusive of closing costs and adjustments.
As previously announced, Cross Keys Place is a 100%-leased 148,000 square foot retail strip shopping center, completed in 2007, anchored by Bed, Bath & Beyond, Sports Authority, AC Moore, Old Navy and Petco tenancies. The property is shadow-anchored by a 118,000 square foot Home Depot store.
The property was acquired at an ingoing yield in excess of 8%. Cedar's share of the purchase price, at approximately $5.3 million, was funded primarily from the Company's credit facility for stabilized properties.
The joint venture expects shortly to place 10-year fixed-rate financing on the shopping center at an interest rate of less than 5% in an amount equal to approximately 55% ($14.6 million) of the purchase price. The joint venture partners' equity funding for the property would be refunded proportionately at completion of such financing.
Cedar will provide property and financial management, leasing, reporting, financing and construction management services for the property and has also received certain acquisition fees.
The Cedar/RioCan joint venture has completed closings of more than $250 million in shopping center properties 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 14.5 million square feet of GLA at 126 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.