Already closed is the acquisition of Strawberry Hill Shopping Centre, a 330,000-sf unenclosed property located in Surrey, British Columbia. The facility is anchored by a 104,000-sf Home Depot, a 52,000-sf Cineplex theater and a 31,000-sf Winners discount-apparel chain location. The center is 99% occupied and has an additional 16,000 sf of expansion capability.
Expected to close within the next few days is the JV's purchase of Brentwood Village Shopping Centre, located in Calgary, Alberta. Another open-air complex, Brentwood Village is a 315,000-sf property anchored by a Safeway supermarket, a 46,000-sf Sears Whole Home and a 25,000-sf London Drugs. Other national tenants include Blockbuster Video, Pier 1 Imports, Bank of Montreal, Pennington's and Sleep Country Canada. The center is currently 97.2% occupied.
The Kimco-Riocan JV is also expected to close this week on a shopping center in Ottawa, Ontario. Lincoln Fields Mall is a 289,000-sf enclosed facility anchored by a 117,000 square foot Wal-Mart and a 42,000 square foot Loeb Glebe supermarket. Other national tenants include Moores Clothing for Men, Pharma Plus, A Buck or Two and Wendy's. The center is 99.5% occupied and has density to permit up to 10,000 additional square sf in out-lot space.
RioCan will be providing all property management services for the JV's acquisitions, which will include 12 centers when this deal is completed. "We are extremely pleased to be acquiring these high quality centers, which have all been built or renovated in the last seven years and derive about 78% of their gross revenue from national and anchor tenants," says Edward Sonshine, Q.C., President & CEO of RioCan. "These acquisitions will bring our joint venture with Kimco to 12 shopping centers totaling approximately 2,952,000 square feet with a total cost of approximately $282.3 million."
RioCan and Kimco have each committed $95.8 million of equity to this joint venture. The two firms will apply revenue derived jointly toward opportunities applicable to a combined portfolio, which currently comprises more than 600 shopping centers consisting of nearly 90 million sf of retail space.
Kimco's portfolio totals roughly 68 million sf of retail space spread over 508 properties in 41 states. RioCan is Canada's largest REIT with total assets of roughly $2.5 billion. Its portfolio boasts 138 retail properties across Canada with more than 20 million sf of retail space.
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