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RioCan to acquire Canada Pension Plan's stake in 4 assets for C$352M


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Essential IR Insights Newsletter - February 2023

RioCan to acquire Canada Pension Plan's stake in 4 assets for C$352M

RioCan Real EstateInvestment Trust agreed to acquire Canada Pension Plan Investment Board's 50% stake in fourCanadian properties for C$352 million, bringing its ownership of the assets to 100%.

The properties include RioCan Centre Burloak in Ontario, Grandview Corners in British Columbia, and and in Alberta.           

Under the terms of the deal, RioCan will not assume any additionalmortgage debt from the seller.

RioCan, which will fund the deal through internal resources,including lines of credit, said the acquisition is immediately accretive and isexpected to generate roughly C$18 million in additional annualized NOI.

The deal is expected to close before July-end.

Additionally, RioCan agreed to acquire Trinity Development GroupInc.'s 25% interest in Chapman Mill Marketplace in Ottawa for C$35.6 million toassume full ownership of the property. It will assume C$18.2 million of the in-placedebt, which carries a 3.9% interest rate and is scheduled to mature in 2018.

The company also boosted its ownership interest in South BankCentre in Okotoks, Alberta, to 75% after acquiring a further 25% stake in the propertyfrom Trinity for C$11.8 million. RioCan assumed an additional C$6.2 million of theproperty's in-place debt, which carries a 3.3% interest rate and matures in 2017.

The company also acquired the remaining 50% stake in in Whitby,Ontario, from its partner, Kimco RealtyCorp., for C$45.0 million at RioCan's interest.

RioCan and Tricon Capital Group Inc. acquired Shops of Summerhill in Toronto on a 75/25 joint-venturebasis for C$31.5 million at RioCan's interest, equating to a capitalization rateof 4.0%. RioCan will be the manager for the fully occupied property.

The joint venture partners assumed the C$13.6 million in-placemortgage financing, which bears a 3.9% interest rate and matures in 2022.