Sunday, November 4, 2012

Tanger, RioCan Agree on $95M Outlet Buy

By Amy Wolff Sorter - Globest.com

GREENSBORO, NC-Tanger Factory Outlet Centers Inc., based here, and RioCan Real Estate Investment Trust of Toronto have, through a co-ownership agreement, waived conditions to acquire two outlet centers in the Montreal area. The co-owners will purchase Les Factoreries St. Sauveur and Bromont Outlet Mall for an aggregate price of $94.7 million (Canadian), with RioCan providing development and property management services and Tanger handling leasing and marketing.

The ownership, which struck a 50-50 deal, is moving forward on value-add activities for the properties  by implementing their operational and marketing programs. Also on tap is rebranding both retail centers under the Tanger Outlets flag.

Les Factoreries St. Sauveur is in St. Sauveur, QC, approximately 50 miles northwest of Montreal and adjacent to Highway 15. The property was built in 1980, expanded in 2006, and is approximately 116,000 square feet. There is the potential to expand to approximately 131,000 square feet on the adjacent 1.1 acres of land which will also be acquired. This retail property's tenants include Nike, Tommy Hilfiger, Reebok, Guess, Jones New York, Naturalizer and Parasuco.

Bromont Outlet Mall, located approximately 52 miles east of Montreal in Bromont, QC, on Highway 10. The 162,000-square-foot retail property was built in 2004 and expanded during 2011. The property also offers the potential to expand to approximately 251,000 square feet. The retail center's tenants include  Point Zero, Tommy Hilfiger, Guess, Puma, Mexx and Urban Planet.

"This opportunity allows RioCan and Tanger to build on the success of Tanger Outlets Cookstown by expanding our footprint into another thriving market," comments Steven B. Tanger, president and Chief Executive Officer of Tanger in a press release.  "Acquiring and rebranding these two proven outlet assets as Tanger Outlet Centers will enhance the co-owners' Canadian platform for our retail partners."

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