RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) and Tanger Factory Outlet Centers, Inc. ("Tanger") (NYSE:SKT), announced today that they have entered into a letter of intent to form an exclusive joint venture for the acquisition, development and leasing of sites across Canada that are suitable for development or redevelopment as outlet shopping centres similar in concept and design to those within the existing Tanger U.S. portfolio. Any projects developed will be co-owned on a 50/50 basis and will be branded as Tanger Outlet Centers. Tanger has agreed to provide leasing and marketing services to the venture and RioCan will provide development and property management services. It is the intention of the joint venture to develop as many as 10 to 15 outlet centres in larger urban markets and tourist areas across Canada, over a five to seven year period. The typical size of a Tanger Outlet Center is approximately 350,000 square feet, but is dependent on tenant demand. Assuming these parameters are suitable and materialize in Canada, on a fully built out basis, the overall investment of the joint venture is anticipated to be as high as $1 billion.
Tanger is a recognized leading developer and manager of outlet shopping centers in the United States, each one known as a Tanger Outlet Center. Tanger has been a publicly held Real Estate Investment Trust since May, 1993. Tanger Outlet Centers are characterized by a tenant mix of leading designer and brand-name manufacturers. Each shopping center provides a unique opportunity for customers to purchase a variety of brand-name products for the entire family directly from the manufacturer at substantial savings.
RioCan is Canada's largest real estate investment trust exclusively focused on retail real estate. RioCan owns and manages community-oriented neighborhood shopping centres anchored by supermarkets, together with a rapidly expanding mix of new format centres.
"In response to the increasing demand by U.S. tenants to expand into Canada, RioCan is pleased to partner with Tanger to develop Canada's first portfolio of U.S. style outlet centres. This venture will fill a void in the Canadian retail marketplace and will provide consumers with a distinctive outlet shopping experience closer to home," said Edward Sonshine, Q.C. President and CEO of RioCan. "This property type will be unique in Canada and will provide a niche retail segment for RioCan to further enhance its position as Canada's leading retail landlord."
"The opportunity to partner with a growth-oriented company such as RioCan to expand our North American border was one not to be missed," stated Steven B. Tanger, President and CEO of Tanger Factory Outlet Centers, Inc. "With RioCan's expertise and stellar reputation in the Canadian marketplace, coupled with the synergies in our strategies and approach to development and growth, we believe that this venture will be successful. Tanger's top retail partners are looking for growth in the Canadian market and it is our intent to provide them with the outlet shopping center sites to meet their needs."
About RioCan
RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $10.1 billion as at December 31, 2010. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 296 retail properties, including 10 under development, containing an aggregate of over 66 million square feet. RioCan owns an 80% interest in 31 grocery anchored and new format retail centres in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centres and drug store-anchored convenience centres located predominantly in the Northeastern United States. For further information, please refer to RioCan's website at http://www.riocan.com/.
About Tanger Factory Outlet Centers, Inc.
Tanger Factory Outlet Centers, Inc. (NYSE:SKT) is a publicly traded REIT headquartered in Greensboro, North Carolina that operates and owns, or has ownership interests in, a portfolio of 33 upscale outlet shopping centers in 22 states coast-to-coast, totaling approximately 10.2 million square feet, leased to over 2,100 stores that are operated by more than 375 different brand name companies. More than 160 million shoppers visit Tanger Outlet Centers annually. For more information on Tanger Outlet Centers, call 1-800-4-TANGER or visit our website at http://www.tangeroutlet.com/.
Mark Libell
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