After Target: RioCan's Big Bank Buy

Who needs Target anyway? The US retailer may have just bailed on its largest Canadian landlord, but RioCan REIT is forging ahead, announcing it's acquired a nationwide portfolio of 18 Bank of Montreal locations totaling more than 173k SF GLA. The properties, bought in a sale-leaseback deal, were purchased for $49.4M. The BMO branch haul—with 11 Ontario locations, including 1293 Bloor St W, pictured—is just part of the $270M in acquisitions RioCan has made since the start of 2014, CEO Edward Sonshine noted in a recent operations update.

RioCan has also acquired the remaining 50% interest in RioCan Leaside Centre from Kimco Realty Corp for $31.5M, capitalizing on a future Crosstown LRT stop planned for Eglinton and Laird. Ed said the deals demonstrate the strength of RioCan's relationships with its partners, which provide an “important source of acquisition opportunities for the trust.” At the same time, he noted, RioCan has disposed of $172.5M in non-core, lower-growth assets since January 2014, part of a “capital recycling program." Most of these properties, which sold for $120M, are in Quebec.

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