Blackstone Buys RioCan's US Portfolio for $2.7B
RioCan REIT will sell its portfolio of 49 retail properties in the northeastern US and Texas to Blackstone Real Estate Partners for $2.7B. RioCan CEO Edward Sonshine said the sale, which follows a strategic review, enables Canada’s largest REIT to capitalize on the strong US dollar and “realize a sizable gain on our investment” (the estimated portfolio purchase price was $1.7B). The deal allows management to focus exclusively on the firm’s Canadian operations, including a “significant development pipeline,” with a number of projects starting construction in 2016. RioCan said the sale also ensures it has “ample capital” to fund its Kimco Realty Corp acquisition.