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BRIEF-RioCan REIT to sell U.S. portfolio of 49 retail properties for $1.9 bln

Published 2015-12-18, 08:09 a/m
© Reuters. BRIEF-RioCan REIT to sell U.S. portfolio of 49 retail properties for $1.9 bln
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Dec 18 (Reuters) - RioCan Real Estate Investment Trust REI_u.TO :
* Announces results of its strategic review of the trust's U.S. operations
* Reit - entered agreement with Blackstone (N:BX) real estate partners VIII to sell
its U.S. portfolio of 49 retail properties
* Estate - to sell U.S. portfolio of 49 retail properties at total sale price
of US$1.9 billion or C$2.7 billion
* Reit says will take advantage of an opportunity to repatriate capital
estimated to be approximately C$1.2 billion
* Reit-entered into an agreement with Blackstone real estate partners VIII to
sell its U.S. portfolio of 49 retail properties
* Says RioCan will receive approximately C$1.2 billion of net proceeds
* Says Morgan Stanley (N:MS) and rbc capital markets are acting as financial advisors
* Reit - established and put in place strategy that will both reduce dilutive
effects of sale and allow RioCan to fortify balance sheet in 2016
* Says Blackstone will assume or repay the debt on the portfolio of
approximately US$0.9 billion
* Reit says taxes and transaction costs to be incurred by the trust are
expected to be approximately US$130 million
* Reit - from proceeds,c$510 million will be used to repay lines that were used
to complete co's acquisition of kimco's interest in 23 properties
* Says remaining portion of net proceeds of approximately C$725 million will be
used to reduce debt
* Source text for Eikon ID:nMKWx9Bgqa
* Further company coverage REI_u.TO

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