RioCan Real Estate Investment Trust, Tanger to Acquire Two Montreal Outlet Malls
RioCan Real Estate Investment Trust and Tanger Factory Outlet Centers (NYSE: SKT), through their co-ownership agreement, announced today they have waived conditions to acquire two outlet centres in the Montreal area, Les Factoreries St. Sauveur and Bromont Outlet Mall. The co-owners will purchase the properties on a 50/50 basis at an expected aggregate purchase price of $94.7 million (Canadian dollar, at 100%). RioCan will provide development and property management services and Tanger will provide leasing and marketing services. The co-owners intend to add value to the properties by implementing their operational and marketing programs and rebranding the properties under the Tanger Outlets flag.
The purchase price includes the assumption of the aggregate in place financing at Les Factoreries St. Sauveur of $18.8 million (Canadian dollar, at 100%) which carries a weighted average interest rate of 5.7% and matures in 2015 and 2020. Bromont Outlet Mall is being acquired free and clear of financing. Both transactions are scheduled to close in November 2012. The acquisition of these centres will enable the co-owners to expand beyond the Greater Toronto Area and implement their outlet centre strategy immediately, as