PORT WASHINGTON, N.Y., Jan. 28 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced the January 26, 2010 closing of the previously-reported purchase of the Town Square Plaza shopping center in Temple, Pennsylvania, by the joint venture of Cedar and RioCan Real Estate Investment Trust (TSX: REI.UN) ("RioCan").
Town Square Plaza is a 127,636 square foot supermarket-anchored ground-up development property, completed in 2008, which is anchored by a 73,300 square foot Giant Food Stores supermarket. Other tenants include A.C. Moore, PetSmart and Affinity Bank. The property is shadow-anchored by a one-year-old free-standing Target store on a separately-owned parcel.
The purchase price, excluding estimated closing costs and adjustments, was approximately $19 million. The property is presently unencumbered. The joint venture partners contemplate property-specific financing on the premises as soon as reasonably practicable.
About the Cedar – RioCan Joint Venture
Cedar and RioCan entered into an 80% (RioCan) and 20% (Cedar) joint venture on October 26, 2009. The joint venture arrangements involve the acquisition by the joint venture of seven supermarket-anchored properties theretofore owned by Cedar as well as the potential acquisition of additional assets, primarily supermarket-anchored properties in the Northeast and Coastal mid-Atlantic states, such as the Town Square Plaza property joint venture acquisition announced herein. The parties contemplate the possibility of further acquisitions of such stabilized supermarket-anchored properties developed and owned by Cedar as well as a number of stabilized supermarket-anchored properties to be acquired from third parties during the next two years. Further descriptive information on the joint venture is included in the Cedar and RioCan respective press releases dated October 26, 2009.
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 approximately 13.1 million square feet of GLA at 122 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years. The Company's stabilized properties have an occupancy rate of approximately 95%. The Company has also announced a pipeline of seven additional substantially pre-leased primarily supermarket- and drugstore-anchored development properties.
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 CDN$7.8 billion as at September 30, 2009. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 253 retail properties, including 13 under development, containing an aggregate of over 60 million square feet. For further information, please refer to RioCan's website at www.riocan.com.
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.