TORONTO, ONTARIO and GREENSBORO, NORTH CAROLINA--(Marketwire - Dec. 9, 2011) - - RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) and Tanger Factory Outlet Centers, Inc. ("Tanger") (NYSE:SKT), today announced that through their co-ownership agreement they have purchased the Cookstown Outlet Mall. The property was acquired on a 50/50 basis for $48 million (Canadian dollars, at 100%), plus an additional $14 million for excess density payable upon the vendor meeting certain conditions, for an aggregate purchase price of $62 million. RioCan will provide development and property management services and Tanger will provide leasing and marketing services. In connection with the purchase, the co-owners assumed the in place financing of $30 million (Canadian dollars) which carries an interest rate of 5.1% and matures in 2014.
Cookstown Outlet Mall is located approximately 50 kms north of the Greater Toronto Area (GTA) directly off of Highway 400 in the town of Innisfil, Ontario. The property was built in 1995 and is approximately 161,000 square feet with the potential to expand to approximately 320,000 square feet. This well established outlet centre features many national retailers such as, Coach Outlet, Adidas, Tommy Hilfiger Outlet, Puma and Rockport. The acquisition of this property will enable the co-owners to begin to implement their outlet centre strategy immediately, as well as provide the flexibility to further develop, through expansion, the site into a full-scale Tanger Outlet Center.
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