Cedar Shopping Centers and RioCan Close on Two Joint Venture Properties
December 14 2009 - 1:30PM
PR Newswire (US)
PORT WASHINGTON, N.Y., Dec. 14 /PRNewswire-FirstCall/ -- Cedar
Shopping Centers, Inc. (NYSE:CDR) today announced that it and
RioCan Real Estate Investment Trust ("RioCan") have closed on the
transfer to a joint venture owned 80% by RioCan and 20% by Cedar of
two properties previously owned by Cedar. The properties are Blue
Mountain Commons in Harrisburg, Pennsylvania, a 121,000 sq. ft.
shopping center anchored by a 98,000 sq. ft. Giant Food Stores
supermarket and Sunset Crossing in Dickson City, Pennsylvania, a
74,000 sq. ft. shopping center anchored by a 54,000 sq. ft. Giant
Food Stores supermarket. The Blue Mountain Commons property is a
ground-up development by Cedar at which the Giant Food Stores
supermarket opened for business on October 28, 2009. Other tenants
include PNC Bank and Sonic. The shopping center property
transferred to the joint venture does not include development
rights with respect to approximately 12 adjacent acres retained by
Cedar. The Blue Mountain Commons property had been included in the
collateral pool for Cedar's $150 million secured revolving
development facility for development properties due June 2011 (with
a one-year extension option). Sunset Crossing had been included in
the collateral pool for Cedar's secured revolving credit facility
for stabilized properties (which, as announced, has recently been
extended at $265 million for a two-year period to January 2012,
with a one-year extension option). The two properties transferred
represent initial transfers under the joint venture agreement
between Cedar and RioCan, as previously announced, with respect to
seven properties heretofore owned by Cedar. Transfers of the
remaining five properties to the joint venture are subject to
lender approvals and are expected to close during the first quarter
2010. The transfer of these two properties to the Cedar/RioCan
joint venture has resulted in net cash proceeds to Cedar of
approximately $32 million which have been applied to reduce the
outstanding balances under the Company's credit facilities. About
Cedar Shopping Centers, Inc. Cedar Shopping Centers, Inc. is a
fully-integrated real estate investment trust which focuses
primarily on ownership, operation, development and redevelopment of
"bread and butter"® supermarket-anchored shopping centers in
coastal mid-Atlantic and New England states. The Company presently
owns and operates approximately 13.1 million square feet of GLA at
122 shopping center properties, of which more than 75% are anchored
by supermarkets and/or drugstores with average remaining lease
terms of approximately 11 years. The Company's stabilized
properties have an occupancy rate of approximately 95%. The Company
has also announced a pipeline of seven additional substantially
pre-leased primarily supermarket- and drugstore-anchored
development properties. For additional financial and descriptive
information on the Company, its operations and its portfolio,
please refer to the Company's website at
http://www.cedarshoppingcenters.com/. Forward-Looking Statements
Statements made or incorporated by reference in this press release
include certain "forward-looking statements". Forward-looking
statements include, without limitation, statements containing the
words "anticipates", "believes", "expects", "intends", "future",
and words of similar import which express the Company's beliefs,
expectations or intentions regarding future performance or future
events or trends. While forward-looking statements reflect good
faith beliefs, expectations, or intentions, they are not guarantees
of future performance and involve known and unknown risks,
uncertainties and other factors, which may cause actual results,
performance or achievements to differ materially from anticipated
future results, performance or achievements expressed or implied by
such forward-looking statements as a result of factors outside of
the Company's control. Certain factors that might cause such
differences include, but are not limited to, the following: real
estate investment considerations, such as the effect of economic
and other conditions in general and in the Company's market areas
in particular; the financial viability of the Company's tenants
(including an inability to pay rent, filing for bankruptcy
protection, closing stores and vacating the premises); the
continuing availability of acquisition, development and
redevelopment opportunities, on favorable terms; the availability
of equity and debt capital (including the availability of
construction financing) in the public and private markets; the
availability of suitable joint venture partners and potential
purchasers of the Company's properties if offered for sale; changes
in interest rates; the fact that returns from acquisition,
development and redevelopment activities may not be at expected
levels or at expected times; risks inherent in ongoing development
and redevelopment projects including, but not limited to, cost
overruns resulting from weather delays, changes in the nature and
scope of development and redevelopment efforts, changes in
governmental regulations relating thereto, and market factors
involved in the pricing of material and labor; the need to renew
leases or re-let space upon the expiration or termination of
current leases and incur applicable required replacement costs; and
the financial flexibility to repay or refinance debt obligations
when due and to fund tenant improvements and capital expenditures.
DATASOURCE: Cedar Shopping Centers, Inc. CONTACT: Leo S. Ullman,
Chairman, CEO and President, Cedar Shopping Centers, Inc.,
+1-516-944-4525, Web Site: http://www.cedarshoppingcenters.com/
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