Cedar Shopping Centers Closes Purchase of a Supermarket-Anchored Center in Connecticut for $19.6 Million

PORT WASHINGTON, N.Y., Sept. 29 /PRNewswire/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced that it, on behalf of the joint venture between Cedar (20%) and RioCan Real Estate Investment Trust of Toronto, Canada, (TSX: REI.UN) ("RioCan") (80%) has completed the purchase of Montville Commons in Uncasville, Connecticut for approximately $19.6 million.

Montville Commons is an 118,000 sq. ft. center completed in 2006.  It is anchored by a 63,000 sq. ft. Stop & Shop with a lease extending to March 2027; other tenants include Sleepy's and Chili's; it is shadow-anchored by a Home Depot store.  The property also contains two approved, but undeveloped, "pad" sites which could accommodate approximately 8,200 additional rentable square feet.

The property is being acquired "free and clear"; the joint venture expects to place $11 million fixed-rate financing on the property (approximately 56% of the purchase price) for a period of ten years at an interest rate of approximately 5.0%.  

Cedar will be entitled to acquisition, property management, leasing, construction management, reporting and financing fees for the property.

Cedar's share of the initial equity investment, funded from its credit facility for stabilized properties, was approximately $4.0 million.

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 (both wholly-owned and in joint venture) approximately 13.5 million square feet of GLA at 120 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.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $8.6 billion as at June 30, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 269 retail properties, including 11 under development, containing an aggregate of over 60 million square feet. RioCan owns an 80% interest in eight grocery anchored shopping centers in the United States and owns a 14% equity interest in Cedar Shopping Centers, Inc.  For further information, please refer to RioCan's website at www.riocan.com.

SOURCE Cedar Shopping Centers, Inc.

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