UPDATE 1-RioCan plans to buy two retail properties for C$102 mln

Wed Aug 25, 2010 12:46pm EDT

* Wal-Mart occupies majority of the properties

* Average leasing term are 15.5 years

Aug 25 (Reuters) - RioCan REIT (REI_u.TO) said it plans to acquire two new retail shopping centers in Ontario and Quebec for about C$102 million ($96.23 million) during the third quarter.

On Aug. 11, RioCan said it had more than C$500 million in deals to acquire properties in various stages of due diligence, and was in the process of completing several refinancings to boost its capital.[ID:nN11238433]

The trust said Wal-Mart Stores Inc (WMT.N) occupies 53 percent of the total gross leasable area of 558,881 square feet, generating 35 percent of the total rental revenue from these properties.

Average lease term for the properties is 15.5 years, with Walmart having a remaining lease term of 17.1 years, it added in a statement.

"The acquisition of these two high quality properties enables RioCan to secure a long term stable cash flow stream with a high quality tenant such as Walmart, which is RioCan's third largest tenant by rental revenue," Chief Executive Edward Sonshine said.

Shares of Canada's biggest and oldest real estate investment trust, which gained 13 percent in the last three months, hit an intra-day high of C$21.43 earlier in the day, its highest since Sept 2008. They were trading up 2 percent at C$21.40 Wednesday on the Toronto Stock Exchange.

($1=1.060 Canadian Dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by Vyas Mohan) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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