Cedar Shopping Centers Completes Purchase of Five Shopping Centers for $135 Million
-Secures Aggregate Financing of $72.5 Million at 4.75%-
PORT WASHINGTON, N.Y., Sept. 30 /PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced that it, on behalf of a joint venture between Cedar (20%) and RioCan Real Estate Investment Trust of Toronto, Canada, (TSX: REI.UN) ("RioCan") (80%), has completed the purchase, for approximately $134.7 million, exclusive of closing costs and adjustments, of five anchored-shopping centers, constituting the initial five properties of the seven-property portfolio to be purchased, as previously announced, from the Pennsylvania Real Estate Investment Trust (NYSE: PEI) ("PREIT").
The properties represent in the aggregate approximately 936,000 square feet of GLA. One of the properties was completed in 2001; the others were all completed in 2007-2009. Three of the five are located in Pennsylvania, one in New Jersey and one in Virginia. Principal tenants include Home Depot, Kohl's Department Store, Best Buy, Giant Food Stores, Genuardi's, Dick's Sporting Goods, Bed, Bath & Beyond, Ross Stores, Staples, PetSmart and Old Navy. Shadow anchors include Lowe's Home Improvement Center and Target.
The joint venture has placed separate five-year fixed-rate first mortgage loans on the five respective properties in the aggregate amount of $72.5 million with interest at 4.75% and amortization on a 30-year schedule. The loans, each secured by separate first mortgages on the respective properties, are neither cross-collateralized nor subject to cross-default provisions in any manner.
Cedar funded its contribution of approximately $12.8 million to the joint venture from its credit facility for stabilized properties.
Cedar has entered into an agreement with PREIT-Rubin, Inc. to provide certain property management services for a base management fee of 1.75%, and certain leasing services for a period of three years. Cedar shall have the right after one year to terminate the property management agreement. Cedar shall be in full control of, and responsible for, financial management.
With the closing of this acquisition, the Cedar/RioCan joint venture has closed to date the purchase of more than $225 million in shopping center properties this year. Additional closings on purchase transactions announced to date, and expected to close by year-end, are pending.
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 14.4 million square feet of GLA at 125 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of more than 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.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article