RioCan, Kimco Team Up for $156M Center Buy

TORONTO-RioCan Real Estate Investment Trust, based here, has teamed up with New Hyde Park, NY-based Kimco Realty Corp. to buy a 10-building Canadian retail portfolio for about $156 million. The 50/50 venture will be called RioKim II, and will be sourced, leased and managed by RioCan. H&R Real Estate Investment Trust is reportedly the seller of the properties.

The portfolio includes several larger-format retail centers, as well as some neighborhood strip centers, for a total of about one million sf. The average age of the portfolio is about 11 years, and the properties have an average occupancy of about 97.6%, according to a RioCan statement. Rags Davloor, SVP and CFO, did not return a call for comment.

The closing of the transaction is expected to take place on June 25. The properties include the 138,000-sf 220 Chain Link Dr. in Halifax, Nova Scotia (anchor: Wal-Mart); the 116,147-sf 1160 Desserte Ouest in Montreal (Zellers); the 54,950-sf 857 Cecile Blvd. in Hawkesbury, Ontario (Price Chopper); the 17,000-sf Shoppers Drug Mart in Hawkesbury, the 283,877-sf 720 Maloney Blvd. in Gatineau, Quebec (Wal-Mart); the 127,416-sf 1701 Merivale Rd., Ottawa, Ontario (Loeb and Best Buy); the 71,930-sf 110 North Front Street in Belleville, Ontario (A&P); the 105,955-sf 878 Tower St. S. in Fergus, Ontario (Zellers); the 90,212-sf 1345 Huron St. in London, Ontario (Shoppers Drug Mart) and the 71,423-sf 448 St. Clair St. in Chatham, Ontario (Food Basics).