RioCan Acquires CPPIB’s Stake In Four Retail Properties
RioCan REIT is acquiring Canada Pension Plan Investment Board's 50% interest in four co-owned retail properties, including RioCan Centre Burloak in Oakville (above), in a $352M deal. The transaction increases RioCan’s core urban market focus to 77%, notes CEO Edward Sonshine. His firm has made over $1.2B in acquisitions since September (including its recent purchase of The Shops of Summerhill, below, a JV with Tricon Capital Group), “an impressive accomplishment in what remains a challenging market to acquire quality assets in an accretive manner.”
The four new acquisitions (the other three properties are in Edmonton, Calgary and Surrey, BC) will be key drivers of RioCan's short-term performance, generating $18M in added NOI, its CEO says. The REIT's been busy on the buy front. It purchased Trinity Development Group’s 25% stake in Ottawa's Chapman Mill Marketplace, and acquired an additional 25% interest in South Bank Centre in Okotoks, AB. It also purchased the remaining 50% stake in Whitby's Thickson Ridge from Kimco Realty Corp, in the midst of a Canadian property disposition.