RioCan, Pension Funds Plan $500M Shopping Spree

TORONTO-RioCan Real Estate Investment Trust of Toronto has formed the RioCan Retail Value Limited Partnership with the Ontario Municipal Employees Retirement System and the Teachers Insurance and Annuity Association – College Retirement Equities Fund.

The partners have committed to invest $200 million which, when taken together with third-party debt, will enable the partnership to invest more than $500 million in targeted investments. The Retail Value Limited Partnership will acquire under-performing shopping centers in Canada that have potential for significant value-added, redevelopment or repositioning opportunities and then dispose of these assets over a period of years.

RioCan is the dominant owner of community and new format retail shopping centers in Canada. While its core investment strategy is to focus on stabilized, low risk retail properties to satisfy our goal of maintaining and creating stable and growing recurring distributable income, company President/CEO Edward Sonshine says there are “significant opportunities” for investment in retail properties where value-added potential exists.