RioCan and Kimco Realty Corp. have announced they will divide their 35 jointly owned properties, known as the RioKim Portfolio, into three groups.
RioCan will acquire 22 properties in two stages: 19 properties during the third quarter of 2015 and three properties in the first quarter of 2016. RioCan will acquire Kimco’s interest in these properties for $715 million.
Ten institutional retail assets will also be marketed for sale, one of which is currently under a conditional contract to be sold. The third asset group will include three transitional properties that Target previously occupied. Those assets will be purchased for $238 million and RioCan will assume Kimco’s share of the existing in place debt of $104 million.
RioCan acquired Kimco’s 50 per cent interest in Grand Park and RioCan Leaside Centre in Toronto, Ontario, as well as Brentwood Village in Calgary, Alberta, back in March 2015. The partners also completed the sale of Centres Jacques Cartier on July 31, 2015 for $18 million.
Edward Sonshine, chief executive officer of RioCan, said the sale will increase the concentration of the Trust’s portfolio, most significantly in the Greater Toronto Area (GTA).
“The management team at RioCan is familiar with every aspect of the portfolio, as they have been providing leasing, asset, and property management duties for these properties since the inception of this very successful joint venture relationship that we have enjoyed with Kimco,” Sonshine said. “It is an exceptionally rare opportunity to acquire a selection of properties from a portfolio of this scale that can be easily absorbed by the Trust.”