Millcroft Shopping Centre is a 371,000-sf unenclosed retail property that was constructed about five years ago and is about 97% leased. RioCan, which assumed a $13.5-million mortgage as part of the acquisition price, will be the asset and property manager for the joint venture. All told, RioCan now has ownership interest in 169 properties across Canada.

The retail center is anchored by a 116,000-sf Zellers department store, a 60,000-sf Ultra Food & Drug (A&P) supermarket and a 52,000-sf Canadian Tire outlet. Other national tenants include LCBO, Mark's Work Wearhouse, Shoppers Drug Mart, Brewers Retail and East Side Mario's restaurant. The center has entitlement for a 30,000-sf expansion.

RioCan president/CEO Edward Sonshine says the acquisition is aligned with the company's growth strategy of acquiring high quality retail centers with institutional joint venture partners "so as to enhance our equity returns through fee income." As well, Sonshine says he expects to enhance cash flow form the property by finding tenants for existing vacancies and by adding and leasing up an additional 30,000 sf of space.