Construction Begins
On This World Class
Outlet Center
Serving The Greater Kanata And Ontario Markets
GREENSBORO, N.C., MAY 15, 2013 — /PRNewswire/ -- Tanger Factory Outlet Centers, Inc.
(NYSE:SKT) and RioCan Real Estate Investment Trust hosted an official Ground
Breaking Ceremony today to announce that construction has begun on Tanger
Outlets Ottawa. When complete, we expect that Phase I of the project will be
home to approximately 293,000 square feet of branded factory outlet retailers
from the U.S. and Canada
As the capital of
The upscale
outlet project will be located off the TransCanada Highway (Highway 417) at Palladium Drive .
The site is located in the suburban area of Kanata
and will benefit from its access to the greater Ottawa market. The concept, design and
merchandising of the Ottawa center will be
similar to those within the successful, established Tanger portfolio of outlet
centers in the United States .
Tanger
Outlets offers consumers the opportunity to purchase merchandise that is on
trend and in- season from leading designer and brand name manufacturers at a
savings of 30 to 70 percent off retail prices. We expect the center will
include over 80 leading brand name and outlet stores including: American
Eagle Outfitters, Gap Outlet, Banana Republic Factory Store, Calvin Klein, Nike
Factory Store, Tommy Hilfiger, Aeropostale and many more.
The
projected total cost of this ground up construction project represents an estimated
$120 million dollar investment in Ottawa .
The new center will have a positive economic impact for the area by creating an
estimated 700 jobs during construction and approximately 1,000 full and
part-time retail jobs upon completion. Once complete, we believe the
center will create an estimated $15 million dollars in annual sales tax.
"We
are excited to begin construction on this dynamic new center in the Ottawa
market and look forward to bringing the Tanger Outlets shopping experience to
local residents as well as area tourists," said Steven B. Tanger,
President and Chief Executive Officer of Tanger Factory Outlet Centers, Inc.
"The center co-owned by Tanger and RioCan will deliver new brand name
outlet stores to the market as we strive to continue to elevate the shopping
experience for our Canadian customers."
"The Ottawa Tanger
Outlet Center
development represents an excellent opportunity for RioCan and Tanger to extend
our relationship as we develop the Tanger Outlet experience here in Canada ,"
said Edward Sonshine, CEO of RioCan. "This development, our fourth
shopping center together, will bring an exciting and new shopping experience
that to date has not previously been available in Ottawa and surrounding areas."
About RioCan: RioCan is Canada 's largest
real estate investment trust with a total capitalization of approximately $14.4
billion as of March 31, 2013. It owns and manages Canada 's largest portfolio of shopping centers
with ownership interests in a portfolio of 344 retail properties containing
more than 84 million square feet, including 50 grocery anchored and new format
retail centers containing 13.7 million square feet in the United States
through various joint venture arrangements as at March 31, 2013. RioCan's
portfolio also includes 11 properties under development in Canada .
For further information, please refer to RioCan's website atwww.riocan.com.
About Tanger Factory Outlet Centers, Inc.: Tanger Factory Outlet Centers,
Inc. is a publicly-traded REIT headquartered in Greensboro, North
Carolina that operates and owns, or has an ownership interest in, a
portfolio of 43 upscale outlet shopping centers in 26 states coast to coast and
in Canada, totaling approximately 12.9 million square feet leased to over
2,700 stores operated by more than 460 different brand name companies. More
than 175 million shoppers visit Tanger Factory Outlet Centers annually. For
more information on Tanger Outlet Centers, call 1-800-4TANGER or visit the company's
web site at www.tangeroutlet.com.
This News
Release contains forward-looking statements within the meaning of applicable
securities laws. These statements include, but are not limited to, statements
regarding RioCan's and Tanger's intention to construct Tanger Outlets Ottawa,
the cost and size of the project, the impact on the local area in terms of jobs
and sales taxes generated, and other statements concerning each company's
objectives, its strategies to achieve those objectives, as well as statements
with respect to management's beliefs, plans, estimates, and intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical facts.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "outlook", "objective",
"may", "expect", "intend", "estimate", "anticipate",
"believe", "should", "plan",
"continue", or similar expressions suggesting future outcomes or
events. Such forward-looking statements reflect management's current beliefs
and are based on information currently available to management. All
forward-looking statements in this News Release are qualified by these
cautionary statements. These forward-looking statements are not guarantees of
future events or performance and, by their nature, are based on each company's
current estimates and assumptions, which are subject to risks and
uncertainties.
For a list
of risks and uncertainties described affecting RioCan, see those
described under "Risks and Uncertainties" in RioCan's latest
financial statements and RioCan's Management's Discussion and Analysis for the
period ended March 31, 2013, which could cause actual events or results to
differ materially from the forward-looking statements contained in this News
Release. Those risks and uncertainties include, but are not limited to, those
related to: liquidity in the global marketplace associated with economic
conditions, tenant concentrations, occupancy levels, access to debt and equity
capital, interest rates, joint ventures/partnerships, the relative illiquidity
of real property, unexpected costs or liabilities related to acquisitions,
construction, environmental matters, legal matters, reliance on key personnel,
unitholder liability, income taxes, the investment in the United States of
America ("US"), fluctuations in the currency exchange rate between
the Canadian and US dollar and RioCan's qualification as a real estate
investment trust for tax purposes. Material factors or assumptions that were
applied in drawing a conclusion or making an estimate set out in the
forward-looking information may include, but are not limited to: a stable
retail environment; relatively low and stable interest costs; a continuing
trend toward land use intensification in high growth markets; access to equity
and debt capital markets to fund, at acceptable costs, the future growth
program to enable the Trust to refinance debts as they mature; the availability
of purchase opportunities for growth in Canada and the US; and the impact of
accounting principles adopted by the Trust effective January 1, 2011 under
International Financial Reporting Standards ("IFRS"). Although the
forward-looking information contained in this News Release is based upon what
management believes are reasonable assumptions, there can be no assurance that
actual results will be consistent with these forward-looking statements.
Certain statements included in this News Release may be considered
"financial outlook" for purposes of applicable securities laws, and
such financial outlook may not be appropriate for purposes other than this News
Release.
The Income
Tax Act (Canada )
(the "Act") contains legislation affecting the tax treatment of
publicly traded trusts (the "SIFT Legislation"). The SIFT Legislation
will not impose tax on a trust which qualifies under such legislation as a real
estate investment trust (the "REIT Exception"). RioCan currently qualifies
for the REIT Exception and intends to continue to qualify for future years.
Should this not occur, certain statements contained in this News Release may
need to be modified.
For a more
detailed discussion of the factors that affect Tanger's operating results,
interested parties should review the Tanger Factory Outlet Centers, Inc. Annual
Report on Form 10-K for the fiscal year ended December 31, 2012. Such factors
include, but are not limited to, the risks associated with general economic and
local real estate conditions, Tanger's ability to meet its obligations on
existing indebtedness or refinance existing indebtedness on favorable terms,
the availability and cost of capital, Tanger's ability to lease its properties
or to meet its minimum pre-leasing hurdles on proposed new developments,
Tanger's inability to collect rent due to the bankruptcy or insolvency of
tenants or otherwise, and competition.
Contact: Quentin Pell 214-600-3838 qnpell@tangeroutlet.com
SOURCE
Tanger Factory Outlet Centers, Inc.- heraldonline.com
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