RioCan Real Estate Investment Trust Announces $5 Million Dollar Expansion Of Oshawa Five Points Shopping Centre

Business Wire, Nov 30, 1999

TORONTO--(BUSINESS WIRE)--Nov. 30, 1999--

(TSE:REI.UN.)

RioCan Real Estate Investment Trust ("RioCan") today announced that it is expanding the Oshawa Five Points Shopping Centre. RioCan will construct a 26,500 square foot Winners store, a 25,000 square foot Business Depot and a 12,000 square foot Bouclair, all in a new addition on expansion lands acquired along with the rest of the centre in January, 1999. Simultaneously, the existing 66,600 square foot Zellers store will be modernized and expanded by 20,000 square feet, taking up part of the existing mall, as well as space created by relocating some current tenants.

Construction will be commenced early next year and it is expected that this $5 million expansion will be completed by the fall of 2000. Upon completion, this centre will have been expanded to 322,000 square feet and, in addition to the above-named tenants, will be home to such national retailers as A&P, National Sports, Shoppers Drug Mart, Roger's Video, TD Bank, Radio Shack, Reitmans, Brewers Retail and Black's Camera.

Edward Sonshine, Q.C., President & CEO of RioCan, said, "This expansion will increase the proportion of this shopping centre's income earned from national and anchor tenants to over 74.3% from its already high current 68.5%. This is just one way we add further to the reliability and stability of our cash flows, which is something we are always focused on with the result that currently over 72% of our gross revenue is from national tenants, a proportion which we expect will continue to grow."

RioCan is by far Canada's largest real estate investment trust. RioCan has total assets of approximately $2.1 billion consisting of ownership interests in a portfolio of 125 mostly retail properties across Canada containing an aggregate of approximately 18.4 million square feet of gross leasable area. RioCan's primary objective is the long-term maximization of cash flow and capital appreciation of its portfolio. It achieves this by proactively managing its existing properties, seeking accretive acquisition and expansion opportunities and undertaking development activities on a selective basis. RioCan is listed on the Toronto Stock Exchange under the symbol REI.UN.