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Texas Properties to be owned 100% by RioCan:
----------------------------------------------------------------------------Property NLA Major Tenants----------------------------------------------------------------------------Austin Properties----------------------------------------------------------------------------1890 Ranch 486,896 Super Target (shadow), Ross Dress for Less, Beall's, PetSmart----------------------------------------------------------------------------Southpark Meadows I & II 921,141 Walmart (ground lease), Super Target (Shadow), Bed Bath & Beyond, Marshalls, Ross Dress for Less, Sports Authority----------------------------------------------------------------------------Dallas----------------------------------------------------------------------------Great Southwest Crossing 92,270 Sam's Club (shadow), Kroger (Shadow), PetSmart, Office Depot----------------------------------------------------------------------------Suntree Square 99,269 Tom Thumb (Safeway)----------------------------------------------------------------------------Houston----------------------------------------------------------------------------Bear Creek Shopping 87,912 HEB Center----------------------------------------------------------------------------Riverpark Phase I & II 253,011 HEB, LA Fitness, Dollar Tree----------------------------------------------------------------------------San Antonio----------------------------------------------------------------------------Alamo Ranch 465,371 Super Target (shadow), Ross Dress for Less, Dick's Sporting Goods, PetSmart, Michaels----------------------------------------------------------------------------Temple----------------------------------------------------------------------------Bird Creek Crossing 124,941 Target (Shadow), Home Depot (Shadow), PetSmart, Michaels, Office Max----------------------------------------------------------------------------Total 2,530,811----------------------------------------------------------------------------
Terms of the transaction:
The gross purchase price for the 20% interest in the eight properties to be acquired by RioCan is $96.6 million, representing a capitalization rate of 6.9%. Under the terms of the transaction, RioCan will assume RPAI's share of the existing in place mortgage financing on five of the properties aggregating $41.8 million, which carries an average interest rate of 3.7% and has an average term to maturity of 2.9 years. Three of the properties will be acquired free and clear of financing. The properties to be acquired have an average occupancy of 94.4%.
The gross sale price for the 80% interest in the five properties owned by RioCan is $102.8 million, representing a capitalization rate of 6.8% and represents a total of approximately 600,000 square feet (at a 100% interest). RPAI will assume RioCan's portion of the in place mortgage financing of $54.3 million that carries a weighted average interest rate of 4.8%.
---------------------------------------------------------------------------- US$ Amount in millions----------------------------------------------------------------------------Purchase Price for eight properties from RPAI $ 96.6Less Debt Assumed by RioCan from RPAI $ (41.8)Less mark to market debt adjustment $ (1.1)----------------------------------------------------------------------------Net Purchase Price by RioCan $ 53.7--------------------------------------------------------------------------------------------------------------------------------------------------------Sale price of RioCan's 80% interest in five properties to RPAI $ 102.8Less debt assumed by RPAI from RioCan $ (54.3)Less mark to market debt adjustment $ (2.9)----------------------------------------------------------------------------Net Proceeds from Sale to RPAI $ 45.6----------------------------------------------------------------------------
